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 |
G. Safety Rules/Visiting Job Sites
Homebuilders are responsible to provide safe working conditions on their job sites and to strictly adhere to OSHA guidelines. Purchasers should be reminded that the property belongs to the homebuilder until close of escrow. Visitors to the job site, including purchasers, are required to wear hardhats, to adhere to specific visiting hours and safety rules, and may be asked to sign an acknowledgement releasing the homebuilder from liability for any injuries that may occur while they are visiting the job site.
 Trade contractors are usually required to stop working when visitors enter the job site, because of safety considerations, and may even leave and go to another job, if they feel their work is being delayed. Trade contractors are usually not allowed to accept direction from anyone other than an authorized representative of the homebuilder.
With the exception of “sweat equity” transactions, most homebuilders do not allow their home purchasers to perform any work in the home prior to close of escrow, and may have the right to cancel the purchase contract and retain the earnest money (depending on the exact verbiage in their contract) if the home purchaser attempts to do any type of work in the home prior to close of escrow.
Most homebuilders require that purchasers agree to specific rules pertaining to visiting the job site, and may include language in their purchase contract similar to the following examples:
ACCESS TO RESIDENCE DURING CONSTRUCTION. If Purchaser desires to visit the Residence during the course of construction, Purchaser may only do so during reasonable hours established by Seller and if accompanied by Seller’s Sales Associate or another authorized representative of Seller. Purchaser assumes the risk of injury and loss which may result from any visit to the Residence by Purchaser, its family members, guests and invitees during the course of construction and Purchaser hereby releases Seller and Contractor from all claims, demands, injuries, losses, damages, lawsuits and liability which may arise as a result of such entry onto the Property or into the Residence and Purchaser further agrees to indemnify, hold harmless and defend Seller and Contractor from all such matters. Purchaser agrees to wear a hardhat and appropriate clothing and shoes when visiting the Residence during the course of construction.
NO PURCHASER WORK ON RESIDENCE PRIOR TO CLOSING. Prior to Closing, Purchaser will not be able to provide materials, trade contractors or supplies to or for the Residence or work on or make modifications to the Residence. If Purchaser breaches this Agreement by violating the restrictions set forth in this Section, the installations and/or alterations may be removed by Seller at Purchaser’s expense, and will, whether or not removed, become property of Seller, and this Agreement shall be subject to termination. Any communication regarding construction of the Residence or related improvements must be handled by Purchaser setting an appointment through Seller’s sales associate for the Community, and Purchaser shall not make any direct contact with any workmen, suppliers, superintendents or subcontractors of Seller or Contractor or their employees. Any requests, notices or demands delivered in writing to the Seller’s sales associate shall be deemed given to Seller. In addition, the Warranty on any part of the Residence affected by such alterations and/or installations shall be deemed void, and the Purchaser shall indemnify Seller from any demands, claims, losses, damages, cost and liability arising from such modifications and alterations.
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