New home contract is unbelievable

[savemart55]

I have just read over my contract to buy a new home and I can't believe that anyone would sign one of these. I am used to negotiating commercial lease contracts for my retail stores where at least 25% of the original clauses or terms are changed to protect my interests. The salesperson told me to either sign this document as is or there was no deal. Not only does it take away my right to sue, has no protection from any failure to perform on the part of the builder, but it states that my earnest money and upgrade money ($7000.00) can be kept for basically any reason that the builder comes up with. Is there any way such as putting these monies in escrow, to have a half a chance of ensuring some performance by this builder?

 

[HomeGuru]

Congratulations, you have discovered what most people do not know.
Almost all contracts have a binding arbitration clause and other terms and conditions that favor the builder. I have even read contracts by the Top Home Builders in America that, get this, have a clause that states the Builder provides no warranty of habitability.
which means that the Builder does not warrant that the home is fit to be lived in!

Thanks for hitting the nail on the head.
For further info on bad builders, contruction defects, binding arbitration etc. check out http://www.hadd.com and http://www.hobb.org

In answer to your question, no, the builder will not let you do it that way. It is either the Builder way or the highway. That is how they always remain in control.

[Edited by HomeGuru on 02-28-2001 at 07:36 PM]

 

[savemart55]

Thank you for your reply. The best way to change this I guess is to wait until there is a buyers market and force builders to change these documents. In the Dallas area currently the new homes go up in price before they are even completed. I,ll look around your site to see if I can do some business with one of your advertisers as an exchange for your work.

 

[HomeGuru]

Thanks.