What distinguishes the TREC New Home Contract (Incomplete Construction) from the New Home Contract (Completed Construction)?
Correct Answer
D) The incomplete version is for homes still being built; the completed version is for homes that are finished
The key distinction is the construction status: the Incomplete Construction version is used when the home is still being built, while the Completed Construction version is used when the home is already finished and ready for occupancy.
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Related Topics & Key Terms
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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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