If you’re thinking about buying new construction in the Charlottesville area or anywhere else, please, please, please be aware that onerous, hateful contracts are being used by some of the builders.
Contrary to the popular opinion that you can “get out of” any contract, these don’t fit that mold.
Try this out for starters –
Delivery Date, If Applicable: PURCHASER understands and accepts that there will be a longer than normal delivery date due to the location of this purchase being in a section currently not developed. SELLER will make all reasonable efforts to insure that a timely delivery is made. Any delivery date quoted is based on the best available information provided to SELLER at this time. The delivery date quotes should not be construed as a guarantee and SELLER contracts, will supersede any delivery date estimate.
That’s almost not so bad, despite the fact that there is really no guidance as to when closing might happen nor any penalties for not delivering a product by a certain time.
Purchaser and Seller shall jointly conduct the Pre-Settlement Inspection on a date and at a time specified by Seller, in its sole discretion, in accordance with he provisions of applicable laws. Seller will notify Purchaser when the condition of the site and the progress of construction is sufficient and appropriate, in Seller’s sole discretion, to permit the Pre-Settlement Inspection. It isÂ the mutual intent and understanding of Purchaser and Seller that the Pre-Settlement Inspection is a private inspection to be held in accordance with the terms and provisions of the Sales Agreement and applicable law and conducted in a manner acceptable to Seller in its sole and absolute discretion. Except to the extent otherwise provided by law, Purchaser is not entitled to be accompanied at the Pre-Settlement Inspection by any agent, family member or invitee including, without limitation, any home inspector (collectively, “Purchaser’s Agent”) without Seller’s express consent, which consent may be withheld in Seller’s sole discretion.
Purchaser acknowledges and agrees that if Purchaser is permitted to be accompanied by a Purchaser’s Agent at the Pre-Settlement Inspection … Purchaser’s Agent shall attend the Pre-Settlement Inspection as an observer only and under no circumstances will Purchaser’s Agent be permitted to perform any independent tests or inspection of the Property or in any way interfere with or actively participate in the performance of the Pre-Settlement Inspection. In the event of a breach or attempted breach of the restriction set forth in the immediately preceding sentence, Seller shall have the right to immediately stop the Pre-Settlement Inspection and require that Purchaser’s Agent leave the Property prior to resuming the Pre-Settlement Inspection.
Read: If the Realtor speaks, they can be asked to leave.
Let this serve as a warning to buyers – don’t become an example used as “what not to do.” I have heard of buyers who were suckered into thinking that they “had” to buy “today” in order to get the “best deal;” they sign the Contract and then go to a Realtor for advice – only to be told that the Realtor is, at that point, only able to say, “I’m sorry for you.” I have heard too many stories of buyers literally crying in the Realtor’s office after they signed the Contract without representation.
One size certainly does not fit all. Certainly, not all new construction contracts are this odious and one-sided, but buyers (and Realtors) need to be aware that this type of contract is out there, is being used and is being signed by Buyers without even a hint of Buyer Representation.