The New Construction Purchase Agreement serves as the primary contract document when purchasing a property that has yet to be built or is currently under construction in the United States. This agreement is essential for protecting both the builder's and buyer's interests throughout the construction and purchase process. Unlike standard real estate purchase agreements, this document includes detailed construction specifications, timelines, and warranties. It must comply with federal regulations such as the Interstate Land Sales Full Disclosure Act, as well as state-specific construction and real estate laws. The agreement typically includes provisions for construction quality, materials specifications, completion deadlines, inspection rights, and warranty terms.
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1. Parties: Identification of builder/seller and buyer with full legal names and addresses
2. Background: Context of the agreement including property description and construction intent
3. Definitions: Key terms used throughout the agreement
4. Purchase Price and Payment Terms: Total price, deposit requirements, and payment schedule
5. Construction Specifications: Detailed description of construction work, materials, and standards
6. Construction Timeline: Expected start and completion dates, milestones
7. Inspection Rights: Buyer's rights to inspect during construction and at completion
8. Warranties: Builder's warranties on construction and materials
9. Default and Remedies: Consequences of default by either party and available remedies
10. Closing and Transfer of Title: Requirements and procedures for closing the sale and transferring property title
1. Financing Contingency: Terms related to buyer's financing requirements and conditions for mortgage approval
2. Customization Options: Provisions for buyer modifications to standard plans and associated costs
3. HOA Provisions: Terms related to homeowners association membership, fees, and compliance requirements
4. Environmental Provisions: Special terms relating to environmental requirements and compliance
5. Force Majeure: Provisions for unforeseen circumstances affecting construction timeline
1. Schedule A - Property Description: Legal description of the property and lot details
2. Schedule B - Construction Specifications: Detailed construction plans and materials specifications
3. Schedule C - Floor Plans and Elevations: Architectural drawings and plans
4. Schedule D - Fixtures and Finishes: Detailed list of included fixtures, fittings, and finishes
5. Schedule E - Construction Timeline: Detailed construction schedule with milestones
6. Schedule F - Warranty Terms: Detailed warranty provisions and procedures
7. Schedule G - Payment Schedule: Detailed breakdown of payment stages and amounts
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