New Home Contract (Incomplete construction)
Plain-English form education, related documents, and how the pieces connect.
What this form is for
Designed for sales of new homes when the property is under construction or is proposed. Not to be used for condominiums or in complex transactions. May be used for sales of new townhomes or patio homes under construction or proposed. Appropriate addenda may be attached. Not to be used for transactions known as "contracts for deed," "wraps," or "lease purchases."
Key sections and how to complete the form
Use the form in order. The sections below explain the main decisions, blanks, disclosures, or deadlines the form is designed to address. Complete the actual form from the transaction facts and the instructions printed on the current version.
B. Natural Resource Leases
“Natural Resource Lease” means an existing oil and gas, mineral, geothermal, water, wind, or other natural resource lease affecting the Property to which Seller is a party. Seller q is q is not a party to a Natural Resource Lease. If Seller is a party to a Natural Resource Lease, check one of the following: q (1) Seller has delivered to Buyer a copy of all the Natural Resource Leases. q (2) Seller has not…
A. Delivery Of Earnest Money And Option Fee
Within 3 days after the Effective Date, Buyer must deliver to (Escrow Agent) at (address): $ as earnest money and $ as the option fee. The earnest money and option fee shall be made payable to Escrow Agent and may be paid separately or combined in a single payment. (1) Buyer shall deliver additional earnest money of $ to Escrow Agent within days after the Effective Date of this contract. (2) If the last day to…
B. Termination Option
For nominal consideration, the receipt of which Seller acknowledges, and Buyer's agreement to pay the option fee within the time required, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination to Seller within days after the Effective Date of this contract (Option Period). Notices under this paragraph must be given by 5:00 p.m. (local time where the Property is…
C. Failure To Timely Deliver Earnest Money
If Buyer fails to deliver the earnest money within the time required, Seller may terminate this contract or exercise Seller’s remedies under Paragraph 15, or both, by providing notice to Buyer before Buyer delivers the earnest money.
D. Failure To Timely Deliver Option Fee
If no dollar amount is stated as the option fee or if Buyer fails to deliver the option fee within the time required, Buyer shall not have the unrestricted right to terminate this contract under this Paragraph 5.
E. Time
Time is of the essence for this paragraph and strict compliance with the time for performance is required.
A. Title Policy
Seller shall furnish to Buyer at qSeller’s qBuyer’s expense an owner policy of title insurance (Title Policy) issued by (Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions: (1) Restrictive covenants…
B. Commitment
Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment (Exception Documents) other than the standard printed exceptions. Seller authorizes the Title Company to deliver the Commitment and Exception…
C. Survey
The survey must be made after the Substantial Completion Date by a registered professional land surveyor acceptable to the Title Company and Buyer’s lender(s). (Check one box only) q (1) At least days prior to the Closing Date, Seller, at Seller’s expense, shall provide a new survey to Buyer. q (2) At least days prior to the Closing Date, Buyer, at Buyer’s expense, may obtain a new survey. Buyer is deemed to…
D. Objections
Buyer may object in writing to defects, exceptions, or encumbrances to title: disclosed on the survey other than items 6A(1) through (7) above; disclosed in the Commitment other than items 6A(1) through (9) above; or which prohibit the following use or activity: . Buyer must object the earlier of (i) the Closing Date or (ii) days after Buyer receives the Commitment, Exception Documents, and the survey. Buyer’s…
E. Title Notices
(1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering the Property examined by an attorney of Buyer’s selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer’s choice due to the time limitations on Buyer’s right to object. (2) MEMBERSHIP IN PROPERTY OWNERS…
A. Access And Inspections
Seller shall permit Buyer and Buyer’s agents access to the Property at reasonable times. Buyer may have the Property inspected by inspectors selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections.
B. Construction Documents
Seller shall complete all improvements to the Property with due diligence in accordance with the Construction Documents. “Construction Documents” means the plans and specifications, the finish out schedules, any change orders, and any allowances related to the plans and specifications, finish out schedules, and change orders. The Construction Documents have been signed by the parties and are incorporated into…
C. Cost Adjustments
All change orders must be in writing. Increase in costs resulting from change orders or items selected by Buyer which exceed the allowances specified in the Construction Documents will be paid by Buyer as follows:_______________________________ ____________________________________________________________________________. A decrease in costs resulting from change orders and unused allowances will reduce the Sales…
Related forms and resources
This is a main contract. Review the related forms below by transaction fact—financing, leases, possession, testing, statutory notices, property associations, mineral rights, and other negotiated terms. Attach only what applies.
This page explains the form; complete the current official TREC version for the transaction. Form shown in this resource: TREC 23-20.
Open TREC contract formsNeed further assistance?
For transaction-specific questions, contact your broker or Broker Rochelle Fitzgerald at Fitz & Co. Real Estate.
For educational purposes only. Agents should verify current forms and consult with their broker when needed.