When you get a new home from a developer, you must follow certain processes. In any case, even if you have an agent to represent you, the developer will need you to use their own standard purchase offer and probably another separate form for the contract. At first sight, these forms may look like they are the same ones your local agent would give you, however, a close inspection will disclose this contract can be really different.
For example, in situations where the flooring you’ve chosen is no longer available, the builder’s contract will allow the builder to substitute products similar to the ones you’ve selected. There can also be a clause allowing the builder a big cushion in situations where your homes completion date will be delayed. When you find these terms, you’ll have to negotiate with the lender to change them – and ignore the builder’s argument their standard forms can’t be changed.
To exacerbate matters further, you can’t receive the advice of an independent Realtor to help you in conferring with the builder, comprehending, and understanding the contract. To guard your concerns, seek the counsel of a expert lawyer prior to signing or request the insertion of a stipulation permitting you to have your lawyer critique the contract prior to the deal becoming final.
To complicate things further, you may not have the advantage of an independent Realtor to help you in negotiating, understanding, and translating the contract. To guard your interests, seek out the recommendation of a well experienced real estate lawyer before signing or request the incorporation of a contingency permitting you to have your real estate lawyer review the contract before the deal is final. If you should happen to feel the verbiage isn’t fair, you can change or add additional terms – the developer can decide if it wants to accept your terms. For example, you might :
1) Put A Limit On Your Money Deposit – If you can put less cash down, you’ll have less risk if the developer doesn’t perform like they should.
2) Add A Finish Date – Insist on including a date by which the home must be finished, or you’ve got the option to cancel the contract.
3) Stipulate A Holdback Clause: Attempt to include a clause specifying that part of the purchase price will be set aside if the house isn’t completed at the finish date, which you can utilize towards having the house finished.
4) Barter For Several Home Inspections And Walk-Throughs – If the builder is supposed to make the home according to your specs, barter to have the right for independent inspections and for you to check the property many times – not only just before closing. This may insure the work is being done correctly and punctually.
5) Don’t Settle For Less Than The Same Quality – If you are getting a home that copies the model, add a clause saying you will be getting the same or better quality than the model, not only minimum quality satisfactory for the local building codes.
Want to find out more about Tustin homes for sale, then check out these local Tustin Realtors for your homebuying needs.
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