When builders are creating a new-construction residence, they often sign contracts ahead of time with prospective buyers. However, these contracts are not always for the benefit of the buyer. They're usually drafted for the benefit of the builder. You'll therefore want to avoid agreeing to an in-house builder agreement at all cost. Instead, you may want to create your own home purchase contract.
Here are some great tips to follow when signing a new home purchase agreement:
Understand what you're agreeing to: A new home purchase involves a lot of money. If you back out of the contract after you've signed it, or if you don't fully understand the agreement, you could risk losing a great deal of money. Be sure to understand fully what you're getting yourself into.
Pin down the details: Make sure that the contract pins down material costs, start and finish times, protocol for making changes and what will happen if the work is late. Include a penalty for missing due dates and deadlines in the contract.
Get clear on costs: When reviewing and drafting the contract, be sure that you have checked for hidden and/or additional fees, costs and expenses. What will the costs be associated with last minute changes?
Define the dispute resolution plan: If there's a disagreement with the builder, will the matter be handled through mediation? Will it be handled in court? Understand the potential costs and fees associated with the dispute resolution option that has been chosen.
With the assistance of an experienced real estate lawyer, Colorado residents can navigate their new home purchase contracts in a way that protects their rights and could save them a lot of time and money.