GLO’s New Build Real Estate Contract Consultations
Are you considering purchasing a new build home? Unlike standard resale transactions that use Colorado Real Estate Commission (CREC) forms, new build contracts are drafted by the builder’s attorney—and heavily favor the builder. These agreements often shift liability to the buyer and limit remedies for construction issues.
Signing without legal review can expose you to unexpected costs, reduced protections, and limited recourse if problems arise. GLO helps you understand and negotiate builder-drafted contracts, identify hidden risks, and secure terms that protect your investment—so your dream home doesn’t turn into a legal headache.
Why You Need Legal Review for New Build Contracts
Builder-drafted purchase contracts are crafted to protect the builder—not the buyer. Unlike the balanced Colorado Real Estate Commission (CREC) forms, these agreements often include provisions that shift risks and liabilities to the buyer in ways that can go unnoticed. Common clauses allow builders to delay completion indefinitely due to factors like weather, labor shortages, or material delays—without penalty. This can leave buyers covering unexpected housing costs, risking mortgage rate expirations, or jeopardizing the sale of their current home.
Other provisions give builders broad discretion to substitute materials or finishes without consent or compensation, potentially resulting in reduced quality or value. Force majeure clauses often excuse performance for a wide range of events, further limiting buyer protections. Without legal review, buyers may unknowingly accept terms that severely restrict their rights. GLO helps you identify these risks and negotiate fairer terms—protecting your investment before you sign.
Limited Warranties and Restricted Remedies
New build homes in Colorado come with implied warranties, such as habitability and good workmanship—but builder contracts often try to limit or redefine these protections. Many impose narrow timelines for reporting defects, require multiple repair attempts, or create complex procedures that make it difficult for buyers to enforce their rights.
Remedies are frequently restricted as well. Contracts may limit compensation to repair costs only, excluding damages for inconvenience, loss of use, or diminished value. Some even waive the right to a jury trial or require binding arbitration, which can be less favorable to consumers. Without legal review, buyers risk unknowingly agreeing to limited protections and reduced recourse. GLO helps you understand these provisions before you sign—so your rights aren’t undermined when you need them most.
Unexpected Costs and Earnest Money Risk
Builder contracts often contain financial provisions that can surprise buyers with added costs or lost deposits. Escalation clauses, for example, allow builders to raise the purchase price due to rising material or labor costs—even after signing—potentially pushing the home beyond the buyer’s budget.
Financing contingencies are also less protective than those in standard resale contracts. If a buyer's financing is delayed or denied, the earnest money may be non-refundable, even through no fault of their own. Additionally, builder contracts often shift more closing costs onto the buyer than is typical in resale deals. Without legal review, buyers risk overpaying, losing their deposit, or facing financial strain. GLO helps identify and negotiate fairer financial terms—protecting your investment from hidden costs.
How GLO Can Help: Your Advocate in New Build Home Purchases
GLO provides dedicated legal support for buyers navigating builder-drafted contracts. We begin with a detailed contract review—flagging builder-friendly terms, explaining key risks, and identifying provisions that may expose you to financial or legal vulnerability.
Our consultations walk you through the agreement, answer your questions, and offer tailored recommendations, including securing a review period before signing. We also conduct a full risk assessment, helping you understand your remedies, negotiate fairer terms, and avoid hidden liabilities. And by establishing an attorney-client relationship early, you gain ongoing legal protection throughout the transaction and beyond.
Contact GLO today to ensure your new build purchase is protected, informed, and structured for success.
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