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New Construction Purchase And Sale Agreement for the United States

New Construction Purchase And Sale Agreement Template for United States

A legally binding agreement used in the United States that governs the sale of newly constructed or to-be-constructed real property between a builder/developer and a buyer. The agreement outlines construction specifications, completion timelines, purchase price, payment terms, warranties, and various contingencies specific to new construction properties. It incorporates federal, state, and local construction and real estate regulations.

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New Construction Purchase And Sale Agreement

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What is a New Construction Purchase And Sale Agreement?

The New Construction Purchase And Sale Agreement is essential when buying property that is either under construction or yet to be built. This document, governed by U.S. federal and state laws, serves as both a purchase agreement and a construction contract, detailing the specifications of the property, construction timeline, and terms of sale. It protects both the builder/developer and buyer by clearly defining responsibilities, warranties, and remedies. The agreement is particularly important as it addresses unique aspects of new construction, such as completion dates, construction standards, and buyer selection options, which aren't present in standard real estate purchase agreements.

What sections should be included in a New Construction Purchase And Sale Agreement?

1. Parties: Identification of seller (builder/developer) and buyer with full legal names and addresses

2. Background: Context of the transaction and property development

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property including legal description and specifications

5. Purchase Price: Total price and payment terms including deposits and installments

6. Construction Specifications: Detailed description of construction standards, materials, and finishes

7. Completion Date: Expected completion date and provisions for delays

8. Warranties: Builder's warranties and guarantee provisions

What sections are optional to include in a New Construction Purchase And Sale Agreement?

1. Buyer Selections: Provisions for buyer to select finishes and upgrades when customization options are available

2. Financing Contingency: Conditions related to buyer obtaining financing when mortgage funding is required

3. Construction Inspection Rights: Buyer's rights to inspect during construction phases

What schedules should be included in a New Construction Purchase And Sale Agreement?

1. Schedule A - Property Plans: Architectural plans and drawings

2. Schedule B - Specifications: Detailed construction specifications and materials list

3. Schedule C - Selection Sheet: Buyer's selections for finishes and upgrades

4. Schedule D - Construction Timeline: Detailed construction schedule with milestones

5. Schedule E - Warranty Certificate: Details of builder's warranty coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
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Industries

Interstate Land Sales Full Disclosure Act (ILSA): Federal law requiring developers to provide detailed disclosures to buyers of undeveloped lots, including property reports and statements of record.

Truth in Lending Act (TILA): Federal regulation requiring lenders to provide standardized disclosures about credit terms and costs for construction financing.

Real Estate Settlement Procedures Act (RESPA): Federal law governing real estate settlement processes, requiring specific disclosures and prohibiting certain practices in real estate transactions.

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on race, color, religion, sex, national origin, familial status, or disability.

Americans with Disabilities Act: Federal law requiring certain accessibility standards in new construction, particularly for public accommodations and commercial facilities.

State Real Estate Laws: State-specific regulations governing real estate transactions, including property rights, transfer requirements, and broker responsibilities.

State Contract Laws: State-specific laws governing contract formation, enforcement, and remedies applicable to purchase and sale agreements.

State Construction and Building Codes: State-level requirements for construction standards, safety measures, and building specifications.

State Consumer Protection Laws: State regulations protecting buyers from unfair practices, including mandatory disclosures and cooling-off periods.

State Licensing Requirements: Regulations governing contractor licensing, insurance requirements, and professional qualifications.

Municipal Building Codes: Local regulations specifying construction standards, safety requirements, and building specifications for specific jurisdictions.

Zoning Laws: Local regulations governing land use, building density, setbacks, and permitted uses of property.

Local Permit Requirements: Municipal regulations for obtaining necessary construction, occupancy, and other development permits.

Environmental Regulations: Federal, state, and local laws governing environmental impact, wetlands protection, and pollution control during construction.

Warranty Requirements: Both implied and express warranty obligations for new construction, including structural integrity and workmanship guarantees.

Construction Lien Laws: State laws governing mechanics' liens and other construction-related security interests.

Energy Efficiency Standards: Federal and state requirements for energy conservation and efficiency in new construction.

Home Inspection Requirements: State and local regulations regarding mandatory inspections during and after construction.

Escrow Regulations: State laws governing the handling of earnest money deposits and construction funds through escrow accounts.

Property Transfer Taxes: State and local requirements for taxes and recording fees associated with new property transfers.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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