Contracts
A homebuilder's standard contract for the purchase of a new construction home typically:
AUses the GAR Purchase and Sale Agreement
BUses the builder's own contract form that may strongly favor the builder✓ Correct
CIs regulated by GREC to be balanced
DIs optional — buyers can use the GAR form instead
Explanation
Homebuilder contracts are typically the builder's own forms drafted by the builder's attorneys. They often favor the builder and may include provisions that limit buyer rights, making independent legal review important.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
State-Specific Concepts
GREC Regulation
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