Builder Contract Questions Checklist

BC1. Who is the exact legal entity selling or constructing the home?

Why it matters: The sales representative's name may differ from the contracting legal entity; obligations follow the legal entity that signs.

BC2. Have we verified the builder's identity, applicable licensing or registration, and relevant track record?

Why it matters: Licensing and complaint history can indicate whether representations about quality or completion are backed by a verifiable record.

BC3. Are we signing a builder-drafted agreement, an applicable standard form, or another contract?

Why it matters: Standard forms may carry different default protections than a builder's custom contract; the form affects which terms are negotiable.

BC4. Have we received the complete contract, including every referenced addendum and exhibit?

Why it matters: Missing exhibits can contain material terms (fees, specs, warranty) referenced but not included in the main agreement.

BC5. Which documents take precedence if their terms conflict?

Why it matters: Order-of-precedence clauses determine whether the main contract, an addendum, or marketing materials govern a disputed term.

BC6. Are all representations and negotiated promises included in the written agreement?

Why it matters: Verbal assurances and marketing claims may not bind the builder unless reduced to the executed contract.

BC7. Have we had an opportunity for independent legal review before signing?

Why it matters: A review window lets a licensed attorney flag default, refund, and dispute provisions before commitments become binding.

PL1. Is the lot correctly identified by legal description and applicable address or lot number?

Why it matters: An imprecise lot reference can lead to closing on the wrong parcel or a different elevation/position than shown.

PL2. Are lot dimensions, boundaries, setbacks, and easements documented?

Why it matters: Setbacks and easements affect where fencing, additions, and landscaping may be placed after closing.

PL3. Are there recorded restrictions or architectural controls affecting how we may use the property?

Why it matters: Restrictions may limit exterior changes, rentals, or structures — obligations that survive closing.

PL4. Are utilities, drainage, grading, and site conditions adequately addressed?

Why it matters: Undisclosed drainage or grading issues can become the owner's responsibility after closing.

PL5. Are there known or disclosed flood, environmental, or site-specific concerns requiring investigation?

Why it matters: Flood or environmental conditions affect insurance, financing, and future resale.

PL6. Is the lot premium separately identified?

Why it matters: A lot premium may be financed or due at closing; its treatment affects total cost and cash required.

PL7. What ownership or development rights does the builder retain over surrounding property or common areas?

Why it matters: Retained rights can allow continued construction or commercial use that affects enjoyment and resale value.

PD1. What is the total agreed purchase price?

Why it matters: Confirms the headline number the rest of the cost analysis is built on.

PD2. Does that price include the lot premium, selected upgrades, and other agreed charges?

Why it matters: Excluded charges can appear later as change orders or closing-line additions.

PD3. What deposits are required, in what amounts, and by which deadlines?

Why it matters: Deposit timing affects cash flow and how much is at risk if the transaction changes.

PD4. Who holds each deposit?

Why it matters: Whether a deposit is held in escrow or by the builder affects refund exposure.

PD5. When does each deposit become non-refundable, if at all?

Why it matters: Refund windows determine the point at which a commitment cannot be unwound.

PD6. What happens to deposits if financing is denied, construction is delayed, or the transaction is terminated?

Why it matters: Financing or delay contingencies may or may not protect deposits depending on the contract terms.

PD7. Can the purchase price increase after signing, and under what circumstances?

Why it matters: Escalation clauses and pass-through fee provisions can raise the price after commitment.

PD8. Are escalation provisions, administrative fees, or other possible charges clearly explained?

Why it matters: Unlisted fees can materially change the total cost versus the quoted price.

FI1. Is using the builder's preferred lender required to receive any advertised incentive?

Why it matters: A tied incentive may raise the effective financing cost enough to offset its face value.

FI2. Can we choose an outside lender, and what changes if we do?

Why it matters: Outside-lender options reveal whether the incentive is truly optional.

FI3. Are lender credits, closing-cost contributions, or rate incentives documented in writing?

Why it matters: Verbal incentive promises may not be honored unless memorialized in the contract or addendum.

FI4. Are there restrictions on how incentives may be applied?

Why it matters: Application restrictions (rate buydown only, specific line items) affect the incentive's real value.

FI5. What financing application, approval, and commitment deadlines apply?

Why it matters: Missed deadlines can forfeit incentives or the rate lock, or endanger the transaction.

FI6. What happens if financing is unavailable or loan approval expires before closing?

Why it matters: Determines whether deposits are protected and what cure or extension options exist.

FI7. What happens if the appraisal is below the purchase price?

Why it matters: An appraisal gap may require additional cash or a price renegotiation the builder need not accept.

FI8. Who bears the cost of extending a rate lock if construction is delayed?

Why it matters: Rate-lock extension fees can be a meaningful, often-overlooked cost of a delayed build.

PS1. Are the floor plan, elevation, and relevant construction specifications attached or clearly incorporated?

Why it matters: Reference without attachment leaves the built product open to interpretation.

PS2. Which model-home features are standard and which are upgrades?

Why it matters: Model homes are often fully upgraded; assuming standard inclusion leads to disappointment and change orders.

PS3. Are cabinets, countertops, flooring, appliances, fixtures, and finishes sufficiently specified?

Why it matters: Vague specifications (e.g., 'builder's standard grade') leave finishes to the builder's discretion.

PS4. Are structural options and selected upgrades documented with prices?

Why it matters: Undocumented upgrades may not be installed or may be charged again at closing.

PS5. What rights does the builder have to substitute materials or modify plans?

Why it matters: Substitution rights can change quality, appearance, or value after signing.

PS6. What happens if a selected product becomes unavailable?

Why it matters: Availability provisions determine whether a substitute, credit, or delay results.

PS7. Which exterior improvements, landscaping, fencing, driveway, and site finishes are included?

Why it matters: Exterior scope is frequently assumed but not always contractual; gaps appear at walkthrough.

PS8. How will discrepancies between marketing materials and contract specifications be resolved?

Why it matters: Marketing materials often disclaim accuracy; the contract controls unless it says otherwise.

TD1. What is the anticipated construction start date, if applicable?

Why it matters: A start date anchors the schedule; delays often begin at permitting or site work.

TD2. Is the completion date guaranteed, estimated, or subject to broad extensions?

Why it matters: A guaranteed date with a remedy differs materially from an 'estimated' date with none.

TD3. What events allow the builder to extend the completion timeline?

Why it matters: Broad force-majeure or supply clauses can allow lengthy, penalty-free extensions.

TD4. How and when must the builder communicate delays?

Why it matters: Notice obligations determine whether the buyer learns of delays in time to adjust connected plans.

TD5. Is there an outside completion deadline or other defined remedy for extended delays?

Why it matters: A walk-away right after a long delay is a meaningful protection when coordinating another sale.

TD6. Can the builder require closing on short notice?

Why it matters: Short-notice closing clauses can force a buyer to close before inspections or financing are ready.

TD7. What happens if our existing-home sale, lease, relocation, or rate lock cannot accommodate a delay?

Why it matters: Connected transactions create real costs when a build slips; the contract determines who bears them.

TD8. What cancellation or other remedies, if any, are available if the home is substantially delayed?

Why it matters: Remedies for delay vary widely; some contracts provide none beyond closing late.

CU1. What is the deadline for design-center selections?

Why it matters: Selection deadlines lock in scope and price; late selections may be impossible or premium-priced.

CU2. Which selections become non-refundable or irreversible?

Why it matters: Some structural or custom selections cannot be unwound after a cutoff.

CU3. How are change orders documented and approved?

Why it matters: Verbal change approvals can lead to charges the buyer did not intend to authorize.

CU4. What additional fees or price adjustments can apply?

Why it matters: Administrative or change-order fees add to the quoted upgrade cost.

CU5. Can the builder make changes without our written approval, and under what circumstances?

Why it matters: Unilateral change rights can alter the home's cost, specs, or timing without buyer consent.

CU6. How do upgrades affect the contract price, financing, appraisal, or completion schedule?

Why it matters: Upgrades can move price, loan amount, appraised value, and timing — each with its own consequences.

CU7. What happens if a requested change cannot be completed?

Why it matters: Determines whether a credit, substitution, or delay results.

CU8. Will we receive a final written selections and change-order summary?

Why it matters: A final summary is the record of what was actually priced and installed.

IA1. Can we hire our own independent home inspector?

Why it matters: Municipal inspections verify code compliance, not workmanship or finish quality.

IA2. Are pre-drywall inspections permitted when construction timing makes them applicable?

Why it matters: Once drywall is up, many structural and systems details are concealed and cannot be re-inspected.

IA3. What access, scheduling, insurance, or notice requirements apply to inspections?

Why it matters: Access restrictions can make independent inspection impractical or impossible.

IA4. Can the inspector return to verify identified concerns?

Why it matters: Follow-up access determines whether flagged items can be confirmed as corrected.

IA5. How are inspection findings submitted and addressed?

Why it matters: A documented submission-and-response process protects the buyer's record of concerns.

IA6. Who determines whether identified work is complete or acceptable?

Why it matters: Acceptance standards affect whether the buyer can be required to close with open items.

IA7. Will applicable permits, inspections, and occupancy approvals be available for review?

Why it matters: Open permits can delay closing or transfer obligations to the buyer after closing.

IA8. What inspection or walkthrough rights exist before closing?

Why it matters: A pre-closing walkthrough is the last chance to identify incomplete or defective work.

WR1. Have we received the full written warranty before signing?

Why it matters: A warranty not in hand at signing may differ from what was described verbally.

WR2. Which workmanship, materials, systems, and structural components are covered?

Why it matters: Coverage scopes vary widely; exclusions often define the real protection.

WR3. When does each coverage period begin and end?

Why it matters: Term lengths for structure, systems, roof, and appliances often differ.

WR4. What exclusions, limitations, deductibles, or maintenance obligations apply?

Why it matters: Maintenance requirements and exclusions can void coverage the buyer expects to rely on.

WR5. Who administers the warranty, and who is responsible for performing repairs?

Why it matters: Third-party warranty administrators and the builder may each handle different claim types — or dispute them.

WR6. How must warranty claims be submitted and documented?

Why it matters: Claim procedures and deadlines can forfeit coverage if not followed precisely.

WR7. What deadlines apply to reporting defects?

Why it matters: Short reporting windows can close coverage before a defect is discovered.

WR8. What happens if a warranty claim is disputed or the builder becomes unable to perform?

Why it matters: A builder unable or unwilling to perform leaves the buyer relying on dispute or statutory remedies.

CP1. What conditions must be satisfied before closing is required?

Why it matters: Closing-readiness conditions determine whether the buyer can be forced to close before the home is complete.

CP2. Who selects the closing or settlement service provider, and what choices are available?

Why it matters: Settlement-provider selection affects cost, timing, and the settlement statement's accuracy.

CP3. When will we receive the final settlement figures and required disclosures?

Why it matters: Late settlement figures leave little time to review charges or cure errors.

CP4. When will the final walkthrough occur?

Why it matters: A walkthrough is the buyer's chance to confirm completion and identify defects before funds are released.

CP5. What happens if substantial work is unfinished or defective at the scheduled closing?

Why it matters: Closing over unfinished or defective work can convert defects into warranty claims.

CP6. Will outstanding work be documented in a written completion or punch-list agreement?

Why it matters: A written punch list is the record that remaining items were acknowledged at closing.

CP7. Are any holdbacks, repair commitments, or other remedies available for incomplete work?

Why it matters: Without a holdback or escrow, the buyer's leverage after closing may be limited to the warranty.

CP8. When will possession, keys, access devices, and relevant home documentation be delivered?

Why it matters: Closing and possession are not always simultaneous; a gap affects moving logistics.

CH1. Is the property subject to an HOA, condominium association, or other governing organization?

Why it matters: Association obligations survive closing and bind the owner to dues, rules, and assessments.

CH2. Have we reviewed the applicable covenants, restrictions, rules, and governing documents?

Why it matters: Covenants can restrict use, exterior changes, leasing, and pets; review before closing matters.

CH3. What are the current dues, transfer charges, and known assessments?

Why it matters: Ongoing dues and transfer fees are recurring costs beyond the purchase price.

CH4. Are special assessments or developer-controlled charges possible?

Why it matters: Special assessments can impose large, unbudgeted obligations after closing.

CH5. Are there special taxing districts or additional property-related assessments?

Why it matters: Mello-Roos, PID, or similar districts add to the tax bill and affect affordability.

CH6. Have we estimated property taxes based on the completed home rather than the vacant-lot assessment?

Why it matters: A vacant-lot tax bill can understate the post-construction assessment by a wide margin.

CH7. What amenities are promised, which are completed, and what contractual commitments exist regarding future amenities?

Why it matters: Promised amenities may be discretionary or delayed; the contract may not guarantee completion.

CH8. What construction activity or future development may continue around the home?

Why it matters: Ongoing construction affects enjoyment, noise, and resale timing for years.

DC1. What constitutes buyer default?

Why it matters: Default definitions determine when the buyer can lose deposits or face further liability.

DC2. What constitutes builder default?

Why it matters: Builder-default standards determine when the buyer's remedies are triggered.

DC3. What money or remedies could the buyer lose if the agreement is terminated?

Why it matters: Termination outcomes determine what, if anything, the buyer can recover.

DC4. Under which circumstances can the builder cancel the agreement?

Why it matters: Builder cancellation rights may allow termination even where the buyer expected to proceed.

DC5. Under which circumstances can the buyer cancel or terminate?

Why it matters: Buyer cancellation rights (and their limits) define the buyer's exit options.

DC6. Does the contract contain mandatory mediation, arbitration, or other dispute-resolution provisions?

Why it matters: Arbitration clauses can waive court access and affect the cost and forum of any dispute.

DC7. Are there limitations on damages, legal claims, deadlines, or remedies?

Why it matters: Limitation periods and damage caps can bar claims the buyer assumes are available.

DC8. Have provisions affecting cancellation, liability, dispute resolution, and remedies been reviewed by an appropriate attorney?

Why it matters: Dispute and default provisions are where independent legal review most often changes the decision.