Contracts
A North Dakota purchase agreement for new construction that is not yet built must include:
AOnly the purchase price
BSpecifications, plans, completion timeline, and specific descriptions of what is included✓ Correct
CA generic description since details cannot be known yet
DOnly the lot price
Explanation
Contracts for new construction should include detailed specifications, plans, materials, completion timeline, and what improvements are included to avoid disputes about what the builder is required to provide. Vague contracts lead to misunderstandings and disputes.
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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.
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.
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.
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