Here’s a detailed list of possible questions about the Completed New Construction – Purchase Addendum, along with explanations for each:
- What is the purpose of the Completed New Construction – Purchase Addendum?
It sets out the terms and conditions for purchasing a newly built property that has been completed before closing, covering construction standards, warranties, and compliance with building codes.
- Does this addendum apply only to builder-sold homes or also to resale transactions?
It typically applies to purchases directly from a builder or developer but can also be used if a seller recently completed construction and is selling for the first time.
- What inspections are allowed for a completed new construction property?
The addendum usually outlines the buyer’s right to conduct final inspections to confirm that the property matches the agreed specifications and is free of defects.
- Are there any builder warranties included, and what do they cover?
This addendum often requires disclosure of any applicable warranties for structural components, systems, and workmanship, as well as manufacturer warranties for appliances and fixtures.
- Who ensures that the property complies with building codes and has passed final inspections?
The addendum may specify that the seller or builder is responsible for obtaining all necessary approvals and providing the buyer with a copy of the certificate of occupancy.
- What happens if the final walkthrough reveals construction defects?
The addendum should detail the process for addressing any punch-list items, including timelines for repairs before closing or post-closing agreements.
- Is the sale contingent on the issuance of a certificate of occupancy?
Most transactions involving new construction require this document before closing to ensure the home is legally habitable.
- How is the completion date defined if the home is already finished?
Even though it’s completed, the addendum should clearly state the “completion” milestone, such as final inspection approval, to avoid disputes.
- Who pays for final permits and utility hookups?
The addendum often specifies whether the builder, seller, or buyer will cover any remaining connection fees for utilities, water, sewer, or other services.
- What is included in the property as part of the sale?
The addendum may list all fixtures, landscaping, appliances, and upgrades that are part of the purchase price to avoid misunderstandings.
- Does the addendum address post-closing construction issues?
Some agreements include provisions for the builder to return after closing to fix any issues noted during the warranty period.
Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.
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