Contracts
In NJ, a buyer who makes an offer on a new construction home with a builder typically signs the builder's standard contract, which:
AAlways provides for a 3-day attorney review period
BIs generally not subject to attorney review but is reviewed and potentially negotiated during the attorney consultation period provided by many builders✓ Correct
CCannot be modified under any circumstances
DIs only valid with NJREC approval
Explanation
Builder contracts for new construction may not always include the standard attorney review provision found in resale contracts, but buyers should have an attorney review before signing. Some builders allow a consultation period; others do not include a formal attorney review clause.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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