Building Real Estate - New Home Construction Tips

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Building Real Estate - New Home Construction Tips Powered By Docstoc
					by: Shane Toe ws

Your next few months constructing your new home could prove to be a time consuming and
daunting task. You must recognize that it is difficult, if not impossible to have everything go
smoothly. When buying a home while it is under construction you must have some key notes
available. First, the contract of purchase and sale must be clear and very detailed to outline your
expectations. It must describe the specifics including the details of the labor and materials used
to satisfy your buying agreement. These stand from of construction contracts are available and
these forms of agreement are designed to provide an enforceable agreement between the seller
(builder) and the buyer.

If your developer asks for a deposit (which he will) make sure that it will be deposited into a
trust account. If the agreement should default, the deposit should always be returned back to
yourself. If the developer wishes to hold your deposit as a stake holder, the return of your deposit
may be more difficult. In addition to the standard contract of purchase and sale, you should
include a specifications sheet and the plans for the house. Building contracts are long, complex
documents. Both parties (builder/seller and buyer) should obtain legal advice prior to entering
into a building contract.

Do the walk though! Insist that prior to possession date, both parties conduct a walk-through of
the property prior to possession date. Make sure that all the work is completed and agreed upon.
At this time, both the seller and the buyer should sign and date the list. Copies should be given to
both parties, realtors and lawyers involved. The crown has developed a program in 1998 called
the Home Owners Protection Office. Essentially it is designed to protect the quality of
construction in a new home development. This office licenses residential builders and building
envelope renovators, monitors the provisions of mandatory third-party home warranty insurance
and researches/educates the residential construction industry and consumers.

If you are the owner of a leaky home, the HPO will administer no-interest repair loan programs
and PST relief grants for owners. Theyre set up to ensure that no one has to lose their home due
to the cost of repairing a leaky home. The reconstruction loan program provides no interest loans
to homeowners and housing co-ops who are unable to pay for the cost of repairs.

Your warranty includes a minimum of two years on labor and materials. Five years on the
building envelope which includes water penetration. And ten years on the structure. In order to
minimize confusion about warranties, the HPO created this 2, 5, 10 year home warranty
insurance logo. Its now used in the marketing campaigns of your local realtors and builders in
the Residential real estate market of British Columbia homes. This should take place when you
first occupy the home. You could always find more information on this topic by visiting
http://www.hop.bc.ca

Finally make sure that your realtor inserts a clause clearly stating that the occupancy certificate
must be obtained on or before completion date. However, landscaping and other outside work
can still be in the process of completion. Your occupancy permit merely allows you to move into
your new home! We hope this article helped you think of some things that you might not
normally know. Please do not rely on this article as a guide or legal advice as you should always
consult your lawyer or local realtor for advice, they are the expert.

This article was posted on September 11, 2006

				
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