Page 23 - New Homes Legacy Playbook

Playbook
We would like to as well outline some of the variances you must be prepared to cover as it relates to a builder’s purchase and sales agreement. Some of this information may be elementary, but it is certainly worth touching on again.
To start, builder purchase contracts and state-promulgated contracts can differ in several ways, reflecting the unique needs, preferences, and practices of builders in the real estate industry. Here are some key distinctions:
Customization and Flexibility: Builder Purchase Contracts:
• Builders often have their own standardized contracts that they use for transactions. These contracts are usually highly customized to suit the builder’s specific requirements, project details, and preferences.
• Builders will often include provisions that align with their business models, construction processes, and any unique features of the properties they develop.
State-Promulgated Contracts:
• State-promulgated contracts are typically standardized forms provided or mandated by the state real estate commission. These forms aim to provide a balanced and fair starting point for real estate transactions.
• While state forms might allow some customization, they are generally more rigid compared to builder contracts and they are designed to cover a broad range of real estate transactions.
Inclusion of Builder-Specific Terms: Builder Purchase Contracts:
• The builder contract often includes terms and conditions specific to the builder’s operations. This can encompass details about construction timelines, material specifications, warranty
information, and any additional amenities or features offered.
State-Promulgated Contracts:
• State forms typically include general terms that apply to a wide variety of real estate transactions. While they may cover common aspects like price, closing date, and contingencies, they may not address specific details related to a builder’s construction processes or project-specific features.
Warranty and Inspection Provisions: Builder Purchase Contracts:
• Builders may include comprehensive warranty provisions outlining the coverage and duration of warranties for various components of the property. Inspection processes specific to new construction might also be detailed.
State-Promulgated Contracts:
• State forms often include standard inspection and repair provisions, but these may not be as detailed or tailored to the specific considerations of new construction. Warranty terms may be
more generalized.
Complexity and Length: Builder Purchase Contracts:
• Due to the customization and inclusion of specific builder-related provisions, these contracts may be more detailed and potentially longer than standard state-promulgated contracts.