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New Construction Residential Purchase Agreement for the United States

New Construction Residential Purchase Agreement Template for United States

A New Construction Residential Purchase Agreement is a legally binding contract used in the United States that outlines the terms and conditions for the purchase of a newly constructed residential property. This document governs the relationship between the builder/developer and the buyer, detailing construction specifications, timeline, purchase price, payment schedule, warranties, and closing requirements. It incorporates state-specific requirements and federal regulations pertaining to new home construction and sales.

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What is a New Construction Residential Purchase Agreement?

The New Construction Residential Purchase Agreement is essential when buying a home that has not yet been built or is under construction. This agreement, commonly used throughout the United States, provides comprehensive protection for both builders and buyers by clearly defining construction specifications, timelines, payment terms, and warranty obligations. It differs from standard residential purchase agreements by including construction-specific elements such as build specifications, completion schedules, and builder warranties. The document must comply with both federal regulations and state-specific requirements for new home construction and sales.

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

1. Parties: Identifies the builder/seller and buyer with full legal names and addresses

2. Background: Outlines the context of the agreement and property details

3. Definitions: Defines key terms used throughout the agreement

4. Property Description: Detailed description of the property and specifications of the home to be built

5. Purchase Price: States the total purchase price and payment schedule

6. Construction Specifications: Details of construction, materials, and finishing standards

7. Timeline and Completion: Construction schedule and completion requirements

8. Inspections and Acceptance: Rights and procedures for inspections and final acceptance

9. Warranties: Builder's warranties and guarantees

10. Closing Provisions: Requirements and procedures for closing

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

1. Financing Contingency: Include when buyer requires mortgage financing - Used when buyer's purchase is contingent on obtaining financing

2. HOA Provisions: Homeowners Association rules and requirements - Used when property is part of an HOA

3. Custom Features: Provisions for buyer-selected customizations - Used when buyer has option to customize features

4. Environmental Provisions: Special environmental requirements or considerations - Used when property has specific environmental concerns

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

1. Schedule A - Property Plans: Detailed architectural plans and drawings

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

3. Schedule C - Payment Schedule: Detailed breakdown of payment milestones

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

5. Appendix 1 - Builder's Warranty: Full warranty terms and conditions

6. Appendix 2 - Selection Sheet: Buyer's selections for finishes and materials

7. Appendix 3 - Change Order Form: Standard form for requesting changes during construction

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

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use

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