What not to sign in a home building contract
Are you building a home and you have a building contract to sign? Are you wondering what it is you need to be looking for and if you should add anything? There are many factors to a building contract and you should know what it entails before you agree to anything. Here are some things to look for in a building contract and also a list of what not to sign in a home building contract.
What is a home building contract?
A home building contract is nothing more than an agreement between two or more parties that is enforceable by law. A home building contract typically includes: start and finish dates, the right to settle disputes by arbitration, a warranty of at least one year on all work and materials, a payment schedule, detailed job and materials descriptions, and a waiver of subcontractor liens.
A new home contract is first and foremost a legally binding agreement, it is very important that you retain a lawyer to review and modify the agreement so that it is complete, accurate, fair, and enforceable, for everyone that is involved.
Here are a list of things not to sign in a home building contract:
Don't sign an incomplete building contract.
The more vague your contract, the more likely there will be disagreements over it. While some builders like to have vague contracts, to give them as much freedom as possible in their building, such a contract does not always benefit them in court. When specifications are not clear and a buyer thinks that they are not getting something that they think they paid for, a dispute almost always happens. The size of the argument is usually always related to the cost of the items in question. Most of the time people become personally attached to a new house very quickly and emotions are also a big part of the issue when legal dispute happens.
Don't sign the agreement the 1st time you see it.
Take a complete copy of the agreement home to read over. Check it for all the changes you that you want and any options that you are adding. Take your time as you review this because this is a very important agreement between you and the builders.
Do not sign any contract that you are not completely comfortable with
If there is any part of a contract that does not make sense to you or you do not agree with it, then you should clarify and/or change it so that it states exactly what it is that you agreed to. Remember, this is your house being built and it is okay to look it over multiple times until you are comfortable with everything in the contract.
Don't sign a contract that a lawyer first hasn't looked at
Always have a lawyer look through your building contract before you agree to anything. Lawyers are educated in these areas and know what to look for to make sure you are getting a fair and honest deal. Unfortunately many people don't consult an attorney when making a new home purchase, that is until after things go wrong. By then, a buyer's options may be limited. Of course, having a lawyer review your documents won't guarantee a smooth running job with no disagreements, but it is certainly a step in the right direction.
In following these steps in what not to sign in a home building contract, you will have a much smoother and happier building experience. No guarantees that things will all go perfectly, but following these suggestions will greatly help the situation to be a better one for you. You should enjoy building your own home, so take the time to do it right.
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