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Pre Construction Purchase Agreement

Pre Construction Purchase Agreement Template for United States

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Key Requirements PROMPT example:

Pre Construction Purchase Agreement

"I need a Pre Construction Purchase Agreement for a luxury condominium development in Miami, with specific provisions for custom interior finishes and a completion date set for March 2025, including structured milestone payments."

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Document background
The Pre-Construction Purchase Agreement serves as a critical document in real estate development, particularly when selling properties that have not yet been built. This agreement, commonly used throughout the United States, protects both buyer and developer interests by clearly defining construction specifications, payment terms, and completion timelines. It addresses key aspects such as deposit requirements, construction standards, warranties, and remedies for delays or defaults, while ensuring compliance with federal regulations like ILSA and state-specific real estate laws. The agreement is essential for off-plan purchases and typically includes detailed specifications, floor plans, and payment schedules.
Suggested Sections

1. Parties: Identification of buyer and seller/developer with full legal names and addresses

2. Background: Context of the agreement, including property details and development plans

3. Definitions: Key terms used throughout the agreement

4. Purchase Price and Payment Terms: Details of purchase price, deposit structure, and payment schedule

5. Construction Specifications: Detailed description of the property to be constructed

6. Construction Timeline: Expected completion dates and milestone schedules

7. Closing Conditions: Requirements for closing the transaction

8. Warranties: Builder's warranties and guarantees

9. Default and Remedies: Consequences of breach by either party

Optional Sections

1. Financing Contingency: Terms related to buyer's financing requirements and conditions for mortgage approval

2. Customization Rights: Buyer's rights to modify specifications and limitations on customization options

3. Assignment Rights: Rights and conditions for assigning the agreement to third parties

4. Investment Provisions: Special terms and conditions applicable for investment property purchases

Suggested Schedules

1. Floor Plans: Detailed architectural drawings of the unit

2. Specifications Schedule: Detailed construction specifications and materials

3. Payment Schedule: Detailed breakdown of payment milestones

4. Site Plan: Overall development plan and unit location

5. Finishes Schedule: Details of interior and exterior finishes

6. Warranty Certificate: Builder's warranty terms and conditions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Industries

Interstate Land Sales Full Disclosure Act (ILSA): Federal law requiring developers to provide detailed disclosures to buyers of undeveloped lots, including registration with HUD for projects of 100+ lots

Truth in Lending Act (TILA): Federal regulation requiring disclosure of credit terms and costs in real estate transactions involving financing

Real Estate Settlement Procedures Act (RESPA): Federal law governing real estate settlement processes, requiring specific disclosures about settlement costs and prohibiting kickbacks

Federal Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on protected characteristics

State Property Laws: State-specific regulations governing real property rights, transfers, and obligations

State Real Estate Laws: State-level regulations governing real estate transactions, licensing, and practices

State Consumer Protection Laws: State-specific laws protecting consumers in real estate transactions from unfair or deceptive practices

State Contract Laws: State-specific regulations governing contract formation, enforcement, and remedies

State Construction Lien Laws: State-specific regulations protecting contractors' and suppliers' rights to payment through mechanic's liens

Municipal Building Codes: Local regulations establishing minimum standards for construction safety and quality

Zoning Regulations: Local laws governing land use, building density, and development restrictions

Local Planning and Development Requirements: Municipal regulations governing construction permits, inspections, and development approvals

Securities Laws: Federal and state regulations that may apply if the pre-construction agreement is structured as an investment contract

Environmental Regulations: Federal and state laws governing environmental impact, protection, and compliance in construction

Americans with Disabilities Act (ADA): Federal law requiring accessibility standards in construction and design

Warranty Laws: State and federal laws governing implied and express warranties in new construction

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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