What to Check in Builder Buyer Agreement

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If you`re in the market for a new home, you`ve probably come across the term “builder buyer agreement.” This is a legally binding contract between you and the builder outlining everything from construction timelines to payment schedules. It`s essential to carefully review and understand this document before signing on the dotted line. Here are the most crucial elements to check in a builder buyer agreement.

1. Property Description

The first thing to check in the builder buyer agreement is the property description. This section should provide all the essential details of the property you`re purchasing, including its exact location, size, and any other pertinent information. Make sure this matches the description of the property you toured and agreed to purchase.

2. Payment Schedule

The payment schedule outlines when payments are due and how much you need to pay. Remember that the builder buyer agreement is a legally binding contract, and you are obligated to make the payments outlined in the agreement. Make sure you understand all the fees and charges, including interest, closing costs, and any penalties for late payments.

3. Construction Timeline

The construction timeline outlines when the builder will complete each part of the construction process, from the foundation to the final walkthrough. It`s important to understand that the construction timeline can be affected by various factors, including weather, labor shortages, and supply chain disruptions. However, the builder should provide a realistic estimate of when they expect to complete your home.

4. Warranty and Insurance

Most builders provide warranties on their workmanship and materials, but the length and coverage of these warranties can vary. Make sure you understand what is covered and for how long. Additionally, ensure that the builder has adequate insurance coverage in case of accidents or damages during the construction process.

5. Change Order Procedures

During the construction process, you may want to make changes to the original plans. It`s important to understand the change order procedures, including how much they will cost and how they will affect the construction timeline. The builder buyer agreement should outline this process and provide a clear understanding of what changes are allowed, how they will be communicated, and how much they will cost.

6. Dispute Resolution

In the unlikely event of a dispute between you and the builder, the builder buyer agreement should outline how disputes will be resolved. This may include mediation or arbitration and should provide a clear understanding of how conflicts will be resolved.

In conclusion, the builder buyer agreement is a legally binding contract that outlines all the essential details of your home purchase. It`s important to read and understand the agreement before signing on the dotted line. Check the property description, payment schedule, construction timeline, warranty and insurance, change order procedures, and dispute resolution to ensure a smooth and successful home buying experience.

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