Under the TREC New Home Contract (Incomplete Construction), the builder has provided plans and specifications for the home. During construction, the buyer wants to change the kitchen layout. How should this change be handled?
Correct Answer
D) The change must be documented through the builder's change order process and may require a contract amendment
Changes to construction plans during the building process must go through the builder's formal change order process. If the change affects the contract price or specifications, a contract amendment may also be needed to document the agreed-upon changes.
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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