REALTOR CORNER
GhBa's custom Builder spec contract "remodeled"
Positive Changes Make Contracts More Consumer and Realtor Friendly
I
n the interest of transactional trans- challenge of rewriting the Residential cil’s objective was to clarify language often
parency and with an awareness of Sale Contract for Newly Constructed and misconstrued and to simplify the “contract
consumer skepticism in our current eco- Completed Residence on the Builder’s Lot to close” terms of buying a newly built
nomic climate, the GHBA Custom Builders (commonly known as the Custom Spec custom home.
Council successfully took on the daunting Contract) and related addenda. The coun-
Although there are many changes in out-
line and terminology, this article will focus
on the seven changes to the contract that
will significantly affect—and probably,
Insurance
ease—the transaction between the builder
and the consumer. In turn, this will make
the Realtor’s role more educational than
Custom
adversarial.
Resolution of Disputes
Built For
The new GHBA contract clearly states the
order of preferred steps for conflict resolu-
tion to be:
a. Hold informal discussions
You.
b. Mediation
c. Mutually agreed arbitration
d. Submit the issue to the American
People have trusted
Arbitration Association for binding arbitra-
Ronny Robinson as a
tion if no agreement can be reached once
builders insurance pro
the above steps have been taken.
for more than 15 years.
This, Paragraph 11b, as well as the Ad-
dendum for Dispute Resolution aligns the
He begins with trust and
builder’s preference for mediation with
builds from there.
that of most consumers.
Home Evaluation/Acceptance
This October 20, 2009 revision provides for
an evaluation period (Paragraph 3) in which
the buyer is encouraged to conduct third
party inspections, secure an appraisal,
review the survey, check the builder’s
title and seek financing within a specified
time. Should the buyer choose to have an
unrestricted right to terminate as well as
the evaluation period during the stipulated
time period, she may pay for that right as
stated on the Termination Option Exhibit E.
Home Builders Insurance The option fee is not credited to the sale,
HOME BUILDERS INSURANCE SERVICES
Services are industry leaders in
and termination during this option period
would result in the return of the earnest
providing builder’s insurance
116 N. Rogers St.
money only. This inspection time and op-
programs. At HBIS we work
Waxahachie, TX 75165
tion period are similar to those in the Texas
hard to protect what you have
TOLL FREE: 888.287.7414
Real Estate Commission (TREC) contract
and should be familiar language for Real-
worked so hard to build.
www.hbisonline.com
tors assisting in a new home transaction.
14
JanuarY 2010 | Ho u s t o n Bu i l d e r | Gr e a t e r Ho u s t o n Bu i l d e r s as s o c i a t i o n – Bu i l d i n G a Be t t e r Fu t u r e
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