All About Contracts

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It may seem as if there is a mountain of paperwork involved in building a new home. But the reality is that most of the forms and contracts are fairly straightforward and are designed to clearly describe the transaction and protect you, the buyer.

Key Land Homes uses several standardized forms and contracts. Among the forms that you will most likely encounter are:

Purchase Agreement

The purchase agreement is the legal document that represents your decision to purchase a home. It describes your home (both a legal description and the street address), financing information, homeowner association information, if applicable, and additional legal provisions. We recommend that you read these documents carefully. In particular, please take note of the topics listed on our Buyer’s Checklist which we will discuss with you prior to your signing your purchase agreement.

Addendum to the Purchase Agreement

This is the form used by Key Land Homes to itemize costs for the house, lot and options that determine the selling price of your home.

Financing Addendum

There are three types of financing ; Conventional, FHA or VA. Depending on how you choose to finance your home purchase, the appropriate form will be attached to the purchase agreement.

Key Land Homes Addendum

This form details information that Key Land Homes wants their buyers to know about the building process. It covers several areas including warranties, garages, siding, change policies both structural and non-structural and closing dates.

Cold Weather Construction Addendum

This form describes the policy for handling weather-related construction and finishing delays.

RWC Warranty/Arbitration Clause

This form is related to the 10 year warranty provided on your Key Land home. It describes the process by which buyer and RWC, the warranty insurer, first agree to arbitration should there be a structural issue.

Contingency Addendum

This form applies only if the buyer has a home they need to sell before they can close on the new one. This generally places a 48 hour contingency in the purchase agreement.

Your Key Land Homes agent can provide more information, if required, on these and any other forms and contracts that you encounter.

The contract to build your new home is in force only when all the named parties have signed it. Your Key Land Homes agent will schedule a meeting to review and sign all of the paperwork. This meeting can take 1 – 2 hours and you should feel free to read all contracts and ask any questions that you may have. This paperwork is the official beginning of building your new home and Key Land Homes wants to ensure that it goes as smoothly as possible.

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