This is a follow up on the line of advising buyers, due diligence and other recent articles that recently published in this website to assist and educate potential home-buyers and investors that are considering purchase of pre-construction properties. Almost all contracts for new home contracts are “Builder’s Contract” versus a typical real estate sales contract that is sanctioned by real estate associations. The rule of thumb is that while a real estate sales contracts leans to protect the buyer, the builder’s contracts drafted with the developers benefits in mind.
A real estate professional who is familiar with both types of contracts could easily identify any pitfalls that might harm the buyer’s interest. Depending on the state where t the property is located, the role of a Real Estate Broker varies. In some estates these professionals can not become involved in contracts and their role is limited to finding and showing properties while in others like Florida they draft the contract and follow up with the process till the closing. The other entity to assist a buyer is a real estate attorney that normally does not get involved till draft of the initial purchase offer.
Most of brokers and real estate professionals are compensated by sellers while attorneys might charge the buyers for their services. No matter which state or what type of service applies to you, just make sure to use them and don’t walk unarmed to the developer’s office and start checking out the models. This is more true if the real estate broker is not costing you a dime. The builders have their attorney on their side to protect their benefits, who will look after yours?
