Class Chapters |
| 1 | Enforceable Contracts | | | | 2 | Contract Writing Basics | | | | 3 | Real Estate Licensee Responsibilities | | | | 4 | Ways to Take Title | | | | 5 | Purchaser's Obligations | | | | 6 | Seller's (Builder's) Obligations | | | | 7 | Conclusion | | | | 8 | Final Review | | |
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Tools |
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Instructor |
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Lynn Palmer |
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| Contract Law for New Home Sales Class |
E. Notifications
Home purchasers are required to provide proper notice in writing of such items as a change of address or the purchaser’s inability to complete the transaction.
F. Orientations/Walk-Through
Most homebuilders take pride in their finished product and are genuinely concerned about the long-term satisfaction of their home purchasers. Orientations before, during, and at the completion of construction, facilitate communication between the purchaser and the  homebuilder.
These orientations provide a time for the purchaser to express concerns, ask questions and become educated on the features, the internal construction and the maintenance requirements of their new home.
Many homebuilders include language in their purchase contracts that provide for the purchaser’s attendance at orientations or construction meetings with the salesperson and/or the construction supervisor. The final orientation or walk-through, at the completion of the home, also provides an opportunity (and an obligation) for the purchaser to note any construction items that may require additional attention prior to close of escrow. The following is an example:
PRE-CLOSING ORIENTATION. Purchaser will be given an opportunity, prior to Closing, on a date and time scheduled by Seller, to inspect the Residence with an authorized representative of Seller (the “Pre-Closing Orientation” or “PCO”). At the PCO, Purchaser shall be entitled to inspect the Residence and Seller shall provide Purchaser with an orientation with respect to the Residence, and Purchaser shall, at such PCO, indicate on a PCO form any deviations Purchaser believes to exist between the Plan and the Residence as constructed. In the event Purchaser fails to indicate such deviations on the PCO form and proceeds with the Closing, Purchaser shall be deemed to have agreed to accept the Residence as constructed and subject to all changes and deviations from the Plan and Purchaser shall be deemed to have waived any and all right and claim against Seller with respect to any such changes and deviations from the Plan except to the extent such changes and deviations are later conclusively determined to cause structural deficiencies in the Residence. Seller, within a reasonable period of time, will correct any material deviations noted on the PCO form. At the PCO, Purchaser shall also note on the PCO form any alleged defect, in workmanship or materials, which Purchaser believes to exist in or on the Residence. Any alleged defect not so specified on the PCO form at the PCO shall be deemed to have occurred after said date, while the Residence was in the possession of Purchaser. If any item listed on the PCO form completed at the PCO is the result of defective workmanship or materials, Seller will be obligated to correct such defect(s) at its cost within a reasonable period of time after Closing; provided, however, Seller’s obligation to correct such items will not be grounds for deferring the Closing, nor for imposing any conditions on Closing, nor shall such items entitle Purchaser to withhold funds at closing or cancel this Agreement. Purchaser agrees to grant Contractor reasonable access to the Residence during Contractor’s business hours to complete any corrections required pursuant to this Section 9. Purchaser agrees that ANY ESCROW OR HOLDBACKS REQUIRED BY THE LENDER FOR POOL, LANDSCAPING AND OTHER ITEMS THAT ARE NOT COMPLETED AT THE TIME OF CLOSING WILL BE THE SOLE RESPONSIBILITY OF PURCHASER. Purchaser acknowledges and agrees that Seller may, at the time of Closing, still be in the process of completing certain finishing details of the Residence and/or other property and common areas and that this shall not delay or impose conditions on Closing.
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