|2||Contract Writing Basics|
|3||Real Estate Licensee Responsibilities|
|4||Ways to Take Title|
|6||Seller's (Builder's) Obligations|
|Contract Law for New Home Sales Class|
C. Selection Deadlines
Most homebuilders operate most efficiently if all of the option selections and color selections are completed prior to the start of construction of the home. Therefore, you will often see “selection deadlines” in new home purchase contracts, such as the following example:
DESIGN STUDIO AND CONSTRUCTION SELECTIONS
In order to minimize delays and maximize efficiencies in the construction process, Purchaser agrees to make its Design Studio Selections and other Construction Selections (as those terms are defined below) and the selection of any Options (as defined below) in strict conformance with the time frames, restrictions and provisions set forth in this Section.
SELECTIONS ON OR BEFORE AGREEMENT DATE. The selections listed below in this Section must be finalized as of the Agreement Date and cannot be changed:
Floor Plan and Elevation
Gas or Electric
Patio Cover Options
DESIGN STUDIO SELECTIONS. Within five (5) days of the Agreement Date, Purchaser shall make an appointment with Seller’s Design Studio for the purpose of making all Design Studio selections for the Residence (the “Design Studio Selections”) which shall, without limitation, include floor coverings, cabinets, countertops, appliances, light fixtures, window coverings, structured wiring, home entertainment, pool, and landscaping made available by Seller other than those made pursuant to Section 5A of this Agreement. Such appointment date shall be within fourteen (14) days of the Agreement Date unless Seller’s Design Studio representative determines a later appointment date is necessary. If Purchaser fails to personally attend a scheduled Design Studio appointment, Seller may elect to terminate this Agreement, whereupon this Agreement shall be cancelled and the Deposit shall be returned to Purchaser. Within fourteen (14) days of the Agreement Date, Purchaser shall make all Design Studio Selections and Purchaser shall execute a Selection Addendum and any other documents required by Seller to finalize such Design Studio Selections.
CONSTRUCTION SELECTIONS. Purchaser shall, within fourteen (14) days of the Agreement Date, finalize all selections of construction options for the Residence (the “Construction Selections”) from those made available by Seller and to the extent such Construction Selections are not made on the Agreement Date pursuant to Section 5A of this Agreement, and Purchaser shall, within such fourteen (14) day period complete and execute a Selection Addendum and any other documents required by Seller to confirm such Construction Selections. Purchaser agrees to personally attend a pre-start orientation to confirm options and Design Studio Selections prior to start of construction of the Residence. __
SELECTION GUIDELINES AND RESTRICTIONS. Available options and the prices for options are to be determined by Seller, in its sole discretion, and are subject to change at the discretion of Seller. Purchaser understands that Seller shall have no obligation to make any changes or upgrades to the Residence other than the selections and options Seller makes available for the Residence. Purchaser understands and agrees that, no additions, deletions or other changes regarding the Residence will be permitted after the applicable selection periods set forth above. Seller reserves the right at any time to cancel any option, addition, deletion or change, and in such event the Purchase Price shall be reduced by the applicable price of the deleted items. If any items selected by Purchaser become unavailable or are determined to not be available within time periods necessary to avoid delays in completing construction of the Residence, Purchaser shall, within five (5) business days after notice thereof from Seller, select any replacement item(s) necessary to replace the unavailable item(s). Should Purchaser fail to make all of its selections within the time periods set forth above, Seller may either (i) make such selections within its sole discretion, in which event Seller’s selections shall be final; or (ii) cancel this Agreement and retain the Deposit and other amounts theretofore paid by Purchaser as liquidated damages for Purchaser’s breach of this Agreement. Seller shall have no obligation to consider any Purchaser requests for any options after the applicable selection period has expired. Purchaser acknowledges that if extensive options or upgrades are chosen (including extensive flooring upgrades, pool upgrades or landscaping), the appraisal for the Residence may not reflect full value of such options or upgrades, which will result in Purchaser being obligated to pay a larger cash down payment at the Closing and Purchaser agrees to pay any resulting difference between the appraised value and the Purchase Price.
Changes in options made during construction may be very costly and create significant delays in completion of the home. For these reasons, selection deadlines are a huge benefit to both the purchaser and to the homebuilder.