The recent fault in the real estate industry is builders who can’t complete the construction within the time frame. Therefore buying a new home has become much more complicated than buying a used one. Builders usually offer their own in-house contracts, which are not beneficial for the customers.
Beware of the builder’s default if you want to buy a new home in Montreal. You should consider hiring a real estate lawyer in Montreal to guide you through the process. Above all, you should get your contract with the help of your lawyer. If builders don’t give consent to it, then follow the given tips to protect yourself from builder’s default:
Research about the Builder
Trusting someone to build your new home without research isn’t a good idea. So, check the reviews of builders. Other than the physical appearance of their projects, you should ask the consumers about the quality and working of all home items. Are consumers happy with their work’s quality? Are there any lawsuits against builders?
Carefully read the market to get info about the builder and then decide whether to hire them or not.
Read the contract carefully. Ensure that all the terms and conditions are according to your interests. Make sure that all time frames, such as start date, finish date, delivery date, etc., are up to your liking. The most common builder’s default is late completion of projects and incomplete projects.
Discuss and agree upon a penalty for builders if they fail to complete the project within the written time frame.
Tell the builders about your final budget for the project. Ensure you don’t have to pay any hidden/extra fees later. You should also consider asking for the pricing of any last-minute change, such as installing one more cabinet.
Quality of Materials
Ensure that the quality and quantity of materials used for building the project are up to mark. Make sure to read the terms and conditions for the quality and grading of materials. Because once the builders have bought all materials, it will be too late to argue about changing the material.
Schedule the Payments
You must specify the schedule of payments in advance. Discuss thoroughly whether you want to pay in lump sums or installments. Also, ensure whether checks or credit cards are accepted for payments. Is there any policy if you fail to pay on the scheduled date?
Sign the contract only when you fully satisfy the terms and conditions.
Read before you sign the contract!
The key to avoiding the builder’s default is carefully reading all the clauses in the contract. So that you can later argue with the builder if there’s any loophole in the project.
You should also add a penalty fee to the contract if the builder fails to provide what he signed for. The best thing to do while buying a new home from builders is to hire a real estate lawyer first to avoid the builder’s default.