When purchasing a newly built home, should I be asked to close before the builder has completed all repairs from the home inspection?
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When purchasing a newly built home, should I be asked to close before the builder has completed all repairs from the home inspection?
We are purchasing a newly built home. We are being asked to do a walk through with a home inspector in the morning and go to closing that afternoon. I know this won’t give the builder a chance to fix any problems that are found. My realtor insists the builder will complete any repairs after the closing. I’m afraid they won’t and I’ll lose my rights by closing before they do.
Asked on February 9, 2011 under Real Estate Law, Texas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Are you using an attorney here? I sincerely hope that you are. If there are problems when you do the walk through you need to tell your attorney and ask that they hold a certain amount of money "in escrow" pending the completion of the repairs. What that means is that the money is held by one of the attorneys in an account earmarked for the builder BUT it can not be released until the repairs are made. I hate to say this but do not take your realtors word for it. You need to make sure that there is an escrow agreement in place at closing or you should refuse to sign. Get LEGAL advice here. Good luck.
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