Under the TREC New Home Contract (Incomplete Construction), the builder guarantees that the home will meet certain specifications. If the completed home does not meet the specifications, the buyer may:
Correct Answer
A) Require the builder to correct the deficiencies or seek other remedies under the contract
If the completed home does not meet the agreed-upon specifications, the buyer may require the builder to correct the deficiencies. If the builder refuses, the buyer may seek other remedies under the contract's default provisions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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