b. Examples of Unfair Contract Provisions or Features (continued)

Example

Unfair Contract Provisions or Features

4

A requirement that purchasers waive or release any claim or right for nonperformance by the builder under the contract. 

·   This does not prevent a builder from obtaining a statement from the purchaser at closing that he or she has inspected the house and has not observed any unsatisfactory construction, nor

·   does it prevent the builder from obtaining a release from the purchaser in settlement of a bona fide dispute.

5

Omission of a description sufficient to identify accurately the property sold.

6

Omission of a provision specifying whether the builder or the veteran is to be charged with any special assessments or improvement bonds.  This includes those assessments or bonds which are payable in the future, for improvements included in the plans and specifications or commenced or completed at the time of closing, such as streets, sidewalks, curbs, gutters, and sewers.

7

Omission of a date for completion of proposed construction or failure to give the veteran the option of canceling the contract and obtaining a refund of the deposit if the dwelling is not completed on a specified date or within a reasonable time afterwards.

8

Failure of a contract covering proposed construction to obligate the seller to complete the dwelling in substantial accordance with identified and definite plans and specifications.