The Builders Agreement of Purchase and Sale serves as the primary contract document for new construction property transactions in the United States. This agreement is essential when a purchaser is buying a property that is yet to be built or is under construction. It differs from standard real estate purchase agreements by including detailed construction specifications, timelines, and builder warranties. The document must comply with various federal regulations such as the Interstate Land Sales Full Disclosure Act, as well as state-specific building codes and consumer protection laws. It provides crucial protection for both the builder and the purchaser by clearly defining expectations, responsibilities, and remedies.
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1. Parties: Identifies and defines the builder/seller and purchaser(s)
2. Background: Outlines the context of the agreement and basic premises
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed description of the property and specifications of the build
5. Purchase Price: States the total purchase price and payment schedule
6. Construction Terms: Details of construction timeline, standards, and specifications
7. Closing Conditions: Conditions that must be met before closing
8. Warranties: Builder's warranties and guarantees
1. Financing Conditions: Terms related to buyer's financing when mortgage financing is required
2. Customization Options: Details of available upgrades and modifications when builder offers customization choices
3. HOA Provisions: Home Owners Association rules and requirements when property is part of an HOA
1. Schedule A - Property Specifications: Detailed plans and specifications of the building
2. Schedule B - Standard Finishes: List of included standard finishes and materials
3. Schedule C - Upgrade Options: Available upgrades and their prices
4. Schedule D - Construction Timeline: Detailed construction schedule and milestones
5. Schedule E - Site Plan: Property survey and site layout
6. Schedule F - Warranty Terms: Detailed warranty provisions and procedures
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