Why Buyer Representation Matters Legally with New Construction

In this training session, David Clapsadl from Sterling Law joined us to discuss the importance of buyer representation in new construction transactions and the key contract terms agents should understand when working with builders. The session covered: 🏡 Buyer Representation — David explained why buyers benefit from having their own representation and legal counsel when negotiating builder contracts. 📄 Builder Contracts vs. NCAR Forms — The group reviewed key differences and discussed ways agents can negotiate for protections commonly found in NCAR contracts. 🔍 Inspections & Buyer Protections — David emphasized the importance of inspections, including pre-drywall inspections, final walkthroughs, and clear provisions for addressing incomplete work. 🛠️ Builder Discretion & Changes — The discussion covered builder rights to modify plans, materials, and specifications, along with strategies for limiting excessive discretion. 💰 Builder Incentives & Concessions — David explained how rebates, design credits, and closing-cost incentives can sometimes come with hidden fees or higher lending costs that reduce their overall value. 🏦 Lender & Attorney Requirements — The session addressed concerns surrounding required use of builder-affiliated lenders or settlement providers and discussed RESPA considerations. 📑 Post-Closing Repairs — Agents learned why repair addendums should include specific deadlines and enforceable provisions that survive closing. 💼 Closing & Title Considerations — David reviewed settlement requirements, deed types, title insurance, and buyers' ability to choose their own settlement professionals. 💵 Hidden Costs & Fees — The group discussed additional expenses that can be shifted to buyers and the importance of reviewing the full contract and settlement costs carefully. ⚖️ Legal Guidance — David encouraged agents to recognize when a builder contract required legal review and to advocate for protections that better served their clients. The training provided practical guidance for agents working with new construction buyers, emphasizing careful contract review, strong buyer advocacy, transparency around costs, and the importance of protecting clients throughout the entire building and closing process. Are you an agent in NC & Looking for a brokerage that focuses on the resources important to your business? We’d love to connect! https://choiceresidential.myflodesk.c...