When you decide to build a home, it’s crucial to read the fine print in your contract and know what to expect and what you’re getting before signing on the dotted line. Many Florida developers take advantage of unsuspecting buyers, who often believe they’ve finally invested in their dream home, like the homebuyers of the still-under-construction Coconut Grove townhouse community. 

60 Days vs. 3 Years Of Construction & Development 

A group of Florida homebuyers became involved in a 60-day project that has turned into 3 years of nightmarish back-and-forth between the homebuyers and the developer’s legal team, who continue to claim that they couldn’t help the delays. But, this pattern isn’t uncommon in South Florida where property value is at an all-time high and developers can collect a down payment from each buyer well in advance of being required to provide access to the purchased property. 

And in the case of the Coconut Avenue townhomes, it begs the question of whether a developer is ever required to produce the property or if they can claim infinite delays. Some home buyers have brought forth lawsuits, but the original contracts state that the cases must be handled via mediation or arbitration – a huge benefit to the developer that has resulted in the dismissal of litigation suits. 

Here’s how to read your home building contract and what to look for to make sure you’re not signing something that puts you at a disadvantage later on if your developer decides not to deliver. 

Red Flags To Look For In Your Home Building Contract 

Since your building contract is legally binding, you need to make sure the terms work for you. The contract should include specific language about the details of the project, what materials will be used and where they’ll be sourced, how long the project will take, what warranties are available, and any special terms that both parties have agreed upon. 

When reviewing your contract, be sure to look for: 

• Misleading terms and conditions 
• Unfair payment schedules
• Hidden costs 
• Vague language 
• Missing details 
• Large upfront deposits 
• Arbitration or mediation-only agreements 

Ideally, you will be able to back out of the contract at any time and for any reason, but this may not be feasible. Make sure the terms are at least reasonable for you and that you won’t be stuck honoring your end of the contract while your developer is free to do as they like. 

Look for terms like “at developer’s discretion” or “unless otherwise noted,” which are phrases that essentially allow the developer to decide what they mean later on, depending on what will benefit them the most. 

Feinstein Real Estate & Business Litigation Law can provide you with comprehensive legal representation for your building project. Call now at 954-767-9662.