
Generally, when shopping for a newly built home you drive from neighborhood to neighborhood looking at perfectly manicured model homes. At each model you are met by an eager sales agent who tries to answer all your questions to your satisfaction and turn you from
a shopper to a buyer. Once you feel like you have found your perfect home and decide to make the purchase, the builder has you sign a contract. Most builders use standard pre-drafted forms for their contracts that are signed electronically. These contracts tend to be long and written in tiny font. They often resemble the terms page for smartphone software- long, boring, and complicated. The idea of reading this document can only be compared to counting ants in an ant hill. Most buyers simply click through to fill-in all the required signature spots and avoid reading the legalese to which they are agreeing. That approach is a huge mistake!
Read your contract! Understand your contract! If you cannot understand your contract, have an attorney walk you through it!
Do not rely on what the sales agent told you. Make sure that any promises made by the sales agent are written into your contract. If it is not in the contract, it does not exist. Generally, under North Carolina law, anything that was said but not written into the four corners of the contract is not part of the agreement between the parties. Many builders also include clauses in their contract forms which state that the builder does not make any representations other than what is written in the contract. Therefore, if your sales agent promises you that it will not build a home on the lot next to yours, make sure that promise is written into your contract.
Further, the contract will have many provisions each of which may become very important depending on your circumstances. Among the many provisions, the contract will tell you what happens and what is at risk in case of a disagreement between you and the builder. For example, walking away from the home before purchasing it may mean you lose your deposit which can often be tens of thousands of dollars. Many builders also include arbitration clauses. In signing a contract with an arbitration clause, you agree that legal disputes between you and the other side will be resolved in arbitration, which is a private trial. Arbitration generally takes place outside of the state and federal courts. The dispute will be heard by one or more arbitrators who were selected by you and the other side. The arbitrator or arbitrators will decide on a resolution and that resolution is binding in most cases. Some consider arbitration a less expensive and more efficient alternative to traditional litigation in the court system.
Overall, the contract will state the respective obligations of the buyer and the builder. It will tell you what you can and cannot expect of the builder. Every contract for the construction and sale of a home will be different. That is why it is important to carefully read through the documents you are presented. If you are not clear on what the contract says or its implications, reach out to an attorney so they can walk you through the document and help you understand your risks.
Nothing on this website or this blog should be considered legal advice. Anderson Legal does not represent you and no client-attorney relationship is formed until you have completed our client intake process.
The post YES, YOU DO NEED TO READ THE CONTRACT WITH YOUR BUILDER! appeared first on Anderson Legal – Commercial and Construction Litigation – North Carolina.
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Aleksandra E. Anderson
As Managing Attorney, Aleksandra E. Anderson spent years litigating on behalf of large corporations and banks in matters related to construction, banking, real estate, commercial leasing, and contracts. Now, Mrs. Anderson is using her experience to represent North Carolina families, individuals, and small businesses.
Mrs. Anderson combines the legal excellence of a large firm with the personal approach of a smaller practice to ensure that her clients receive outstanding legal services. Mrs. Anderson graduated from Emory University with a Bachelor of Science in neuroscience and behavioral biology. She went on to receive her law degree from UNC School of Law.
In her free time, Mrs. Anderson enjoys spending time with her family and hiking in western North Carolina.
Johnny Payne is an associate attorney at Anderson Legal. He spent two years on the mock trial team at his law school, where he won an outstanding advocacy award. He is also a member of the Order of the Barristers. Mr. Payne has a passion for civil litigation and looks to serve his clients to the best of his ability.
Mr. Payne graduated from the University of South Florida with Bachelor of Science in business economics. He spent two years working in finance, and then went on to receive his law degree from Georgia State University College of Law.
In his free time, Mr. Payne enjoys reading, time at the beach, visiting museums, and spending time outdoors.
Ms. Braman has been a legal assistant since May of 1983. She has worked in a variety of legal niches including real estate law and family law.
Since 2009, Ms. Braman has focused her career on complex litigation related to: construction defects, contracts disputes, real estate disputes, and professional liability disputes.
In her free time, Ms. Braman loves the beach, reading, country line dancing, and spending time with her two grandchildren.
Ms. Braman has been a legal assistant since May of 1983. She has worked in a variety of legal niches including real estate law and family law.
Since 2009, Ms. Braman has focused her career on complex litigation related to: construction defects, contracts disputes, real estate disputes, and professional liability disputes.
In her free time, Ms. Braman loves the beach, reading, country line dancing, and spending time with her two grandchildren.
Johnny Payne is an associate attorney at Anderson Legal. He spent two years on the mock trial team at his law school, where he won an outstanding advocacy award. He is also a member of the Order of the Barristers. Mr. Payne has a passion for civil litigation and looks to serve his clients to the best of his ability.
Mr. Payne graduated from the University of South Florida with Bachelor of Science in business economics. He spent two years working in finance, and then went on to receive his law degree from Georgia State University College of Law.
In his free time, Mr. Payne enjoys reading, time at the beach, visiting museums, and spending time outdoors.
Aleksandra E. Anderson
As Managing Attorney, Aleksandra E. Anderson spent years litigating on behalf of large corporations and banks in matters related to construction, banking, real estate, commercial leasing, and contracts. Now, Mrs. Anderson is using her experience to represent North Carolina families, individuals, and small businesses.
Mrs. Anderson combines the legal excellence of a large firm with the personal approach of a smaller practice to ensure that her clients receive outstanding legal services. Mrs. Anderson graduated from Emory University with a Bachelor of Science in neuroscience and behavioral biology. She went on to receive her law degree from UNC School of Law.
In her free time, Mrs. Anderson enjoys spending time with her family and hiking in western North Carolina.
Cole Booth is an associate attorney at Anderson Legal. He is an experienced civil litigator who has previously practiced in the areas of employment law and insurance defense. Mr. Booth has worked with North Carolina individuals, families, and corporations to both assert and defend their interests.
Prior to becoming an attorney, Mr. Booth worked in a variety of areas, including pharmaceuticals, public relations, professional journalism, and research. He previously obtained a Bachelor's Degree in Journalism from the University of Alabama, and went on to obtain a law degree from UNC School of Law.
In his free time, Mr. Booth enjoys cooking, tinkering with computers, watching old movies, and spending quality time with his spouse.
Cole Booth is an associate attorney at Anderson Legal. He is an experienced civil litigator who has previously practiced in the areas of employment law and insurance defense. Mr. Booth has worked with North Carolina individuals, families, and corporations to both assert and defend their interests.
Prior to becoming an attorney, Mr. Booth worked in a variety of areas, including pharmaceuticals, public relations, professional journalism, and research. He previously obtained a Bachelor's Degree in Journalism from the University of Alabama, and went on to obtain a law degree from UNC School of Law.
In his free time, Mr. Booth enjoys cooking, tinkering with computers, watching old movies, and spending quality time with his spouse.