The New Construction Home Contract serves as the primary legal document governing the relationship between a home builder and buyer in the United States. This document is essential when a buyer contracts for the construction of a new home rather than purchasing an existing property. It protects both parties by clearly defining construction specifications, payment schedules, completion timelines, and warranty obligations. The contract must comply with federal regulations such as ILSA and TILA, as well as state-specific building codes and consumer protection laws. It's particularly important in managing expectations, preventing disputes, and ensuring clear communication throughout the construction process.
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1. Parties: Identifies the builder/contractor and buyer with full legal names and addresses
2. Background: Context of the construction project, including property details and basic scope
3. Definitions: Key terms used throughout the contract
4. Property Description: Legal description of the lot and proposed construction
5. Purchase Price: Total cost and payment schedule
6. Construction Specifications: Detailed description of materials and methods
7. Timeline: Construction schedule and completion dates
8. Warranties: Builder's warranties and guarantees
9. Inspection and Acceptance: Terms for inspection process and final acceptance of the completed home
10. Default and Remedies: Consequences and remedies for breach of contract by either party
11. General Provisions: Standard contract clauses including governing law, notices, and amendments
1. Financing Contingency: Terms related to buyer's financing requirements and conditions
2. HOA Provisions: Homeowners association requirements and restrictions when property is within an HOA
3. Custom Features: Specific provisions for buyer-requested customizations and modifications
4. Environmental Provisions: Special environmental requirements or restrictions applicable to the property
5. Escrow Arrangements: Details of any escrow arrangements for funds or documents
1. Schedule A - Floor Plans: Detailed architectural drawings of the home
2. Schedule B - Materials Specifications: Detailed list of materials to be used in construction
3. Schedule C - Site Plan: Layout of the property and building location
4. Schedule D - Fixtures and Fittings: Detailed list of included fixtures and fittings
5. Schedule E - Construction Timeline: Detailed construction schedule with milestones
6. Schedule F - Payment Schedule: Breakdown of payment stages and amounts
7. Appendix 1 - Building Permits: Copies of all required building permits and approvals
8. Appendix 2 - Warranties: Copies of manufacturer warranties and builder's warranty
Relevant legal definitions
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