Fillable Printable New Construction Contract

New Construction Contract

NEW CONSTRUCTION CONTRACT

PREMISES:

SALES PRICE: $

PURCHASER: SELLER:

Address:

THIS AGREEMENT made this day of , between

, a New York corporation having an office at

, (“Seller”)

and , residing at

(“Purchaser”).

1. PREMISES

. The Seller agrees to sell and the Purchaser agrees to purchase all that parcel or piece of land,

with the buildings and improvements thereon or to be constructed thereon, situate and being in the County of

, Town of , designated Lot No. on the subdivision plan

entitled “ ” which said subdivision plan and map was filed in

the Office of the Clerk of County on as Map No. (the

”Premises/Parcel”).

2. DWELLING AND STRUCTURES

. The Seller agrees to construct, build and erect on the Parcel a -

family residence, substantially in accordance with (the model house erected on Lot No. , Block No.

)(the approved building plans prepared by , dated

, a copy of which have been given to Purchaser who has initialed same as

evidence of Purchaser’s approval and consent to the proposed structure) (the “Residence”). Following are

the changes, modificatio ns, additions and/or deletions to the foregoing:

3. INGRESS AND EGRESS

. The Parcel shall be conveyed with an easement for ingress and egress over the

street or roadway shown on the subdivision map to the nearest public highway, road or street, but

nevertheless reserving unto Seller the fee title thereto and all franchise rights therein and the right to dedicate

the said streets on said subdivision map to the proper governmental agency having jurisdiction, as well as all

drainage easements shown on the subdivision map for granting to the municipality. In the event that the

streets have not been dedicated to the governmental agency at the time of closing, Seller will provide ingress

and egress to the nearest public road.

4. SUBSTITUTION OF MATERIALS

. In the event that the Seller is unable to procure or purchase the materials

called for in the building plans or as contained in the model house, which are to be contained in the

Residence and Seller’s inability is due to shortages, work stoppage, manufacturer’s delays and other like

causes, Seller may substitute other and different materials in the place thereof and Purchaser hereby

expressly agrees to accept such substitution provided that said substitution is acceptable to the lending

institution, if any, and to the local municipality and further, that the said substitutions are reasonable and of

comparable quality.

5. PURCHASE PRICE

. The Purchase Price is

($ ) DOLLARS, payable as follows:

($ ) DOLLARS on the execution of this Contract subject to collection, the receipt of which

is hereby acknowledged (“Contract Deposit”);

($ ) DOLLARS, in cash, bank or verified check at the time of the delivery of the deed.

6. MORTGAGE CONTINGENCY

. This Contract is subject to the Purchaser obtaining, at their own cost and

expense, a mortgage commitment from a lending institution in the sum of $ at

the prevailing rate of interest and term within ( ) days from the date that a fully executed

copy of this Contract is delivered to Purchaser’s attorney. Purchaser shall make prompt application for said

mortgage commitment and shall cooperate fully with the lending institution. Purchaser shall notify Seller’s

attorney of the name and address of the lending institution to which application was made together with the

amount of the mortgage applied for. In the event that the lending institution declines to make the mortgage

loan applied for, Purchaser shall have five (5) days to notify Seller’s attorney, in writing, of the declination of

mortgage application and upon doing so, this Contract shall be d eemed null and void and any sums deposited

with Seller under the terms of this Contract shall be returned to Purchaser except for such amounts for extras

which were approved by Purchaser and installed by Seller. Should Purchaser fail to so notify Seller of the

declination of the mortgage application within the aforesaid five (5) day period, then, in such event, this

Contract shall be deemed to be an all cash transaction, the Mortgage Contingency shall be of no force and

effect and the parties hereto shall proceed to closing. Notwithstanding anything herein contained to the

contrary, Seller and Purchaser may extend the time in which to obtain a mortgage commitment but only by

the terms of a writing signe d by the parties hereto.

Seller shall have the option, in the event of the declination of the mortgage application by the lending

institution, to grant Purchaser a mortgage for the applied mortgage am ount at the rate of intere st of

( %) per centum per annum for a term of years.

7. TITLE

. Said Premises are sold subject to covenants, easements and restrictions of record and any

easements that must be given to facilitate municipal services and/or public utilities. Seller shall convey such

title as any reputable New York tile insurance company will insure. Seller shall have the option to supply a

New York State title insurance company willing to insure the contemplated transaction, the cost of which shall

be borne by Purchaser in the event that Purchaser’s title company is unwilling to insure the transaction. In

the event that telephone, utility and/or drainage easements are not of record at the time this Contract is

executed, said easements may be given at any time and thereafter recorded, provided, however, that the said

easements do not interfere with the use and enjoyment of the Residence. Purchaser agrees to execute any

and all instruments for the granting and recording of the easements. This provision shall survive the delivery

of the deed. The deed shall contain a metes and bounds or other description satisfactory to the lending

institution or tile insuran ce company.

8. CLOSING COSTS

. In the event that Seller has obtained a building loan mortgage for the construction of the

Residence, the costs incurred in closing the building loan mortgage shall be borne by Purchaser for which

Purchaser shall reimburse Seller, at the closing hereof, to cover all costs and expenses in connection with the

building loan mortgage, recording fees, mortgage tax, interest, title insurance, bank fees, lender attorney fees,

inspection fees, application fees and commitment fees. The reimbursement of these fees shall be paid to

Seller for distribution to the proper parties for payment or to be retained by Seller if Seller had paid same.

The foregoing shall be paid to Seller even if Purchaser does not assume the bu ilding loan mortgage.

Purchaser hereby acknowledges that the disbursements referred to hereinabove do not include any sum or

sums that the lender may require for deposit in escrow account for payment of future taxes, assessments

and/or private mortgage insuran ce.

Seller shall provide to Purchaser a certified survey, without staking, which shall be certified to Purchaser, the

lending institution and the title company. The cost for this survey is $ which sum

shall be paid by Purchaser to Seller at closing.

9. INABILITY TO CONVEY TITLE

. Should Seller, for any reason whatsoever, except for a willful default, be

unable to convey and transfer title to the Premises to the Purchaser in accordance with the terms of this

Contract, Seller’s sole liability shall be limited to the refund of all moneys paid on account of this Contract by

Purchaser, in which event, this Contract shall be null and void and the parties shall have no further liability,

obligation and/or responsibility to the other.

10. SIGNS

. Purchaser, for himself, successors and assigns, does hereby covenant and agree that for a period of

years from the date of closing or until such time as the Seller has conveyed title to all the lots on said

subdivision map, whichever event shall first occur, Purchaser will not place any sign or signs upon any part of

the Premises which advertises or announces that the Premises is for re sale.

11. APPROVALS

. At or prior to closing, Seller shall deliver a Certificate of Occupancy for all the structures on the

Parcel and within weeks after closing, the Boa rd of Fire Underwriters Certificate.

12. SUBORDINATION

. This Contract shall be subject and subordinate to the building loan mortgage recorded

against the Parcel, if any.

13. ADJUSTMENTS. Fuel oil, if any, taxes, water/sewer charges are to be apportioned at closing in accordance

with local custom. If the closing of title occurs before new tax bills are issued and the new amounts cannot be

ascertained, the apportionment of taxes shall be based on one hundred fifteen (115%) per cent of the prior

year’s tax as shown on the tax bill for the prior year.

14. DEED

. The Deed shall be a Bargain and Sale Deed with Covenants Against Grantor’s Acts, shall be in

recordable form and shall contain the covenant required by Section 13 of the Lien Law of the State of New

York. Seller may pay and discharge any and all liens and encumbrances against the Premises from the

proceeds of sale at closing.

15. RISK OF LOSS

. The risk of loss or damage to the Premises by fire or any other cause shall be that of the

Seller until delivery of the Deed pursuant to the terms of this Contract.

16. CLOSING

. The Deed shall be delivered to Purchaser at the office of the Seller’s attorney, or at the office

designated by the lender on or about . In the event that the Seller has completed

the Residence and is ready to close pursuant to the terms of this Contract, Purchaser agrees, should

Purchaser’s l ender be ready to close, to accept title on ( ) days notice to Purchaser’s attorney.

17. BROKER

. The parties agree that they have not dealt with any broker concerning the sale or purchase of the

Premises except and that Seller shall pay the commission

pursuant to separate agreement. The parties hereto agree to hold harmless and indemnify the other in the

event that they have dealt with another broker and a claim is made as a result thereof. This provision shall

survive the delivery of the deed.

18. OCCUPANCY

. Purchaser shall not enter into occupancy or use or move or store property in the Premises

prior to closing without the prior written consent of the Seller. A breach of this covenant by Purchaser shall

constitute a default under this Contract without further act on the part of or notice from Seller, and Seller shall

have the right to commence legal proceedings to which the Seller is entitled or summary proceedings for the

eviction of Purchaser from the Premises, the costs of which shall be borne by Purchaser including reasonable

attorneys’ fees. Purchaser hereby expressly waives any and all defenses to such an action and/or

proceeding.

19. WELLS

. If required by the subdivision regulations or by any municipality, Seller, at Seller’s sole cost and

expense, shall provide a well up to ( ) feet in depth with ( ) feet of

casing and an adequate pump to handle same. If it is necessary to exceed the specifics of the foregoing,

Seller will do so and charge Purchaser as follows: $ per foot up to ( ) feet which

price includes the pump, wire and additional footage. A depth of more than ( ) feet, the

Purchaser will be responsible for $ per foot and the additional cost of the next size pump. If

necessitated by ground conditions, additional steel casing in excess of feet, the cost shall be $

per foot. In the event that the well does not produce potable water, the Seller shall drill additional wells at the

same cost an d expense to Purchaser.

20. SODDING; GRADING

. No part of the Premises shall be sodded. The lot shall be graded a reasonable

distance in front of the Residence, a reasonable distance along the sides of the Residence and a distance of

( ) feet from the rear of the Residence. Seller reserves the right to determine elevation of the

foundation and streets to conform with topographical conditions and to reverse the plan layout or layout of the

model house and to determine the location of the Residence on the lot. ”Reasonable distance” shall be

determined solely by Seller. Seller will not furnish nor plant any shrubs, bushes, flowers or trees. Any

washouts and/or erosions occurring after the date of closing are not the responsibility of Seller.

21. TOPSOIL

. Seller reserves the right to remove all topsoil stored on the Premises but Seller shall comply with

all municipal laws and regulations as to the amount of topsoil needed to be left on the Premises. This

paragraph shall survive delivery of the deed.

22. DEDICATION OF ROADS

. Until such time as the appropriate governmental agency accepts the dedication of

the roadways and/or sidewalks, if any, Purchaser shall not do or cause to be done the depositing of rubbish,

garbage and/or trash upon the roadways and/or sidewalks of the development in which the Premises is

situated. This paragraph shall survive delivery of the deed.

23. EXTRAS

. The Seller shall make the additions to the building plans or plan of the model house set forth on

Schedule A hereto. The sum of ($ ) DOLLARS shall

be paid upon the signing of this Contract and the sum of

($ ) DOLLARS shall be paid at the time of installation of the extras.

24. UNFINISHED ITEMS

. In the event that the Residence shall not be fully completed on or before closing, the

same shall not be deemed an objection to closing provided the lending institution is willing to close and fund

the mortgage commitment. The Residence shall be deemed complete upon the issuance of a Certificate of

Occupa ncy. If an y items or work or supply o f mater ials are then incomplete, the Seller agrees to give and the

Purchaser agrees to accept a written statement setting forth the items that need completion or repair (“Punch

List”). Seller shall further provide a statement setting forth the date by which the Punch List is to be

completed. The Punch List and written statement shall survive the delivery of the deed. At closing, there will

not be an escrow fund deposited by Seller with regard to the Punch List.

25. CONTRACT DEPOSIT

. The Purchaser may require the Seller to deposit the Contract Deposit in an

escrow account. In lieu of such deposit, Seller may post a bond guaranteeing the return of the

Contract Deposit.

26. INCREASE IN PURCHASE PRICE

. This Contract is conditioned upon Seller’s ability to complete the

construction of the Residence at existing cost of materials and at the existing labor scale of wages. In the

event that there is an increase in the cost of materials and/or in the labor scale of wages prior to the closing of

title hereunder, Seller reserves the right to increase the sales price of the Residence in an amount to cover

the said increases by giving written notice of such increase to Purchaser at the address set forth herein.

Should Purchaser fail to notify Seller within ten (10) days after receipt of said notice of Purchaser’s consent to

the increase in price, then, at the expiration of said ten (10) day period, this Contract shall be deemed

terminated, cancelled and of no force and effect and Seller shall return to Purchaser all sums of money paid

on account hereof, without interest, except for the approved extras already installed.

27. ADDITIONAL EXPENSES

. If conditions warrant and call for extraordinary excavation, rock removal, blasting,

tree and/or stump removal, additional fill or similar work, Seller shall obtain a work order from Purchaser for

same prior to incurring such expense, the cost of which shall be borne by Purchaser.

In the event that the municipality having jurisdiction over the construction of the Residence requires changes

not contemplated by Seller and Purchaser at the time of the execution of this Contract, then in such event, the

Purchaser agrees to bear the additional cost of such changes.

28. REQUIRED CHANGES

. Should the Federal, State or local government require any changes in construction

regarding insulation standards other than those standards in effect at the time of the execution of this

Contract, Purchaser agrees to pay for any additional cost in con ne ction therewith.

As per FTC Trade Regulation Rule, Seller has provided to Purchaser the insulation standards that will be

used in the construction of the Residence and the Purchaser hereby expressly acknowledges receipt of

same.

29. GUARANTY

. Notwithstanding the provisions of Paragraph 29 hereof, if Purchaser agrees to release the

Contract Deposit to Seller, the President of Seller, by signing this Contract, personally guarantees the return

of the Contract Deposit in the event that the Contract Deposit is to be returned to Purchaser under the terms

of this Contract.

30. PROPOSED CHANGES

. Any proposed changes to this Contract must be made on a separate rider. Any

deletions of any term, provision or condition of this Contract shall be deemed a counter-offer and Seller will

them be permitted to renegotiate the sales price.

31. DELAY IN CLOSING

. In the event that the purchaser fails to take title to the Premises within fifteen (15) days

after the issuance of the Permanent Certificate of Occupancy, Purchaser shall pay to Seller the sum of

$ per day for each and every day from the date that the Permanent Certificate of Occupancy was

issued to and includi ng the date of closing.

32. WARRANTIES AND GUARANTEES

. The Seller makes no housing merchant implied warrant or any other

warranties, express or implied, in connection with this Contract or the construction of the Residence and all

such warranties are hereby excluded, except as provided in the Limited Warranty annexed hereto. The

express terms, conditions and provisions of the Limited Warranty are incorporated in this Contract as if fully

set forth at length and there are no other warranties.

The Purchaser hereby acknowledges receipt of a written copy of the terms of the Limited Warranty and

Purchaser hereby affirmatively states that Purchaser has received such copy and reviewed same before

executing this Contract.

Seller warrants that the Residence will meet or exceed the standards of workmanship and materials relative

to the industry now existing in New York.

The Limited Warranty specifically excludes those items set forth in the Limited Warranty documents and

further excludes the Seller’s responsibility for the following: (i) nail pops and ridging on sheet rock surfaces;

(ii) sticking of doors due to weather; (iii) warpage of doors and closet shelves less than ½”; (iv) adjustments of

bifold doors; (v) bath tile grouting; (vi) slight separation in the joint of tiled floors; (vii) slight separation

between the wall base or base molding and floors; (viii) normal settlement or deflection and any consequential

damage resulting therefrom; (ix) normal noises from plumbing, heating, fans, vents and ducts; (x) partial or

total death of or damage to any plantings provided by Seller or existing prior to construction; (xi) nonstructural

or settlement cracks in walls, foundation, walks, terraces, patios, retaining walls, curbs or spalling of concrete

walks and terraces; (xii) nonalignment of kitchen cabinets; and/or (xiii) moisture and/or condensation in

basements and/or cra wl spaces.

Seller will not be responsible, subsequent to the closing of title, for paint touch-ups, repair of dented

appliances, repair of chips, scratches, breaks or other blemishes in windows, sliding glass doors, screens,

mirrors, electric fixtures and globes, interior painted surfaces, sinks, tubs, basins, kitchen cabinets and

counter tops, vanity tops and cabinets, medicine cabinets, ceramic tile floor and base and marble saddles,

resilient floor tile, carpeting, kitchen appliances, air conditioning units, dryer vents, woodwork and doors,

wrought iron, rubbish enclosures, other similar items, replacement of fluorescent light ballasts or any other

lights or light bulbs, maintenance due to normal wear and tear. Seller’s warranty excludes those items that

are a result of purchaser’s negligence or willful acts.

33. WAIVER OF JURY TRIAL

. In the event of institution of legal proceedings or litigation amongst the parties

hereto arising out of the terms, conditions and provisions of this Contract, each of the parties hereto expressly

waive their respective right to a trial by jury. In the event that the warranty given hereunder contains a

provision for the submission of the dispute to arbitration, both parties hereto shall be so bound. This

paragraph shall survive delivery of the deed.

34. BANK ESCROWS

. Purchaser acknowledges that Purchaser has no right, title or interest in and to or privity

with the escrow, if any, held by the lending institution for Punch List items.

35. RELEASE

. Notwithstanding anything contained herein to the contrary, it is specifically understood and

agreed that the delivery by Seller and acceptance of the deed by Purchaser shall be deemed to be full

compliance by the Seller of all the terms of the Contract by it to be performed, and as a release by the

Purchaser of any and all terms of this Contract, of any and all rights, obligations, claims or causes of actions

against the Seller. Purchaser acknowledges that none of the provisions of this Contract survive delivery and

acceptance of the deed except for those which expressly state otherwise. No other promise, representation,

agreement or obligation on the part of the Seller, its agents, employees or representatives shall be binding or

survive the delivery and acceptance of the deed except if it is in writing signed by Seller and expressly states

that it survives delivery and acceptance of the deed.

36. PURCHASER’S DEFAULT

. In the event of a default on the part of Purchaser under the terms, conditions

and/or provisions of this Contract, this Contract shall be deemed to be cancelled and terminated without any

further act on the part of the Seller to be performed, and the Purchaser agrees that all amounts paid on

account of this Contract to Seller shall be retained by Seller as liquidated damages. This paragraph shall

survive delivery of the deed.

37. PARTIES BOUND

. The terms, provisions and conditions of this Contract shall be binding upon the parties

hereto and their re spective heirs, assigns, executors, administrator s and successors.

38. ENTIRE AGREEMENT

. The parties hereto acknowledge that this Contract incorporates all prior

understandings, agreements and representations made one to the other or by their respective agents,

servants or employees, whether orally or in writing.

IN WITNESS WHEREOF, the parties have executed this Contract as of the day and year

first written above.

PURCHASER:

______________________________

Tax I.D. No.:

______________________________

Tax I.D. No.:

SELLER:

______________________________

Tax I.D. No.:

PERSONAL GUARANTY PURSUANT TO

PARAGRAPH 29 OF THIS CONTRACT

_______________________________

The Contract Deposit, if required to be held in escrow pursuant to the terms of the

Contract, shall be held by , Esq, in an IOLA account at

(bank) located at

SCHEDULE A

ADDITIONS

Description

Cost

TOTAL COST: $