Solution: step four - its lawyer time!

New homes:

• You can either make your offer conditional on lawyers' approval or take the offer to the lawyer for an approval before you sign. Usually it makes more sense to have the offer conditional on lawyer's approval - most lawyers will not charge you to review and approve the contract if you hire them to do your deal. If you merely take the offer to a lawyer you may find yourself with a legal bill if the lawyer advises you on the contract and then your deal does not go through (i.e. you and the builder do not agree on the price). For that reason - make it conditional on lawyer's approval. You don't need it to be conditional on financing because you prequalified!
• Remember that with New Homes there is usually no Buyer Agent helping you - that means you are on your own.All the more reason to make the offer conditional on lawyers approval. The sales representative works for the Builder - not you!
• While the offer may appear to be a standard form, remember that it was written by the Builder's lawyer with the Builder's interests in mind - not yours!
• Ask about all hidden charges in the contract, they may be disguised as "adjustments." The builder should clearly indicate the dollar amount of all charges in addition to the purchase price or place a "cap" or maximum on all these.
• Get a straight answer on the closing date. Builders' contracts typically allow the Builder some leeway on extending the closing date. Be sure you understand that before you commit to leaving your apartment. Remember, the closing date is not cast in stone!
• Many builders will have made an arrangement with a lender for a discount program or have some special long term capped rate deal for that particular site. Look into these - they may be a better deal than what you have prequalified for.

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