Purchase Agreement with Builder

When it comes to buying a newly built home, one of the most important documents you`ll sign is the purchase agreement with the builder. This document outlines the terms of the sale and protects both the buyer and the builder.

Here are some key things to look for in a purchase agreement:

1. Price and payment terms: The purchase agreement should clearly state the price of the home and how it will be paid for. This may include a down payment, installment payments, or a lump sum payment at closing.

2. Completion date: The agreement should specify when the builder expects to complete the home and turn it over to the buyer.

3. Builder warranties: Builders typically offer warranties on their workmanship and materials. Look for details on what is covered and for how long.

4. Buyer responsibilities: The agreement should outline the responsibilities of the buyer, such as obtaining financing, making payments on time, and maintaining the property.

5. Builder responsibilities: The agreement should also outline the builder`s responsibilities, such as completing the home on time, meeting building codes and regulations, and providing necessary permits and inspections.

6. Contingencies: The agreement should include contingencies that protect the buyer in case of unforeseen circumstances, such as the builder being unable to complete the home on time or the buyer being unable to obtain financing.

7. Dispute resolution: The agreement should include a clause outlining how disputes between the buyer and builder will be resolved, such as through mediation or arbitration.

As a buyer, it`s important to carefully review the purchase agreement with a builder before signing. If you have questions or concerns, don`t hesitate to ask the builder for clarification. And if you`re not comfortable with any of the terms, consider consulting with a real estate attorney before signing.

By understanding the details of the purchase agreement with a builder, you can feel confident in your new home purchase and ensure a smooth and successful transaction.