Contracts
In Washington, a purchase agreement for the purchase of a newly constructed home from a builder typically includes a 'new construction addendum' that addresses:
ACommission adjustments only
BConstruction completion dates, customizations, walk-through procedures, and warranty terms specific to new construction✓ Correct
COnly the price of optional upgrades
DThe builder's marketing restrictions on the property
Explanation
New construction addenda address the unique aspects of purchasing a new home: construction timeline and completion date, allowances for buyer selections, pre-closing walk-through procedures, builder warranties, and what happens if construction is delayed.
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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.
Math Concepts
State-Specific Concepts
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