However, there is no State approved form addressing the issues raised by new construction. Volume builders typically use their own forms, which are naturally very much builder oriented. To some extent, the rigors of the marketplace protect you from the unfairness of these forms. Builders have an incentive to keep you happy, so that others continue to purchase their homes. Yet, as the real estate market has improved, builders have had less of a need to keep buyers happy.
Builders are now more likely to receive multiple offers on a property.
These pressures will tempt builders to take advantage of the escape clauses which they have built in for themselves. While you should have many concerns about these forms, and while these concerns vary somewhat from builder to builder, there are two especially troubling features about most volume builder form contracts. No effective remedy for Purchaser for Builder's default. If either party hereto prior to Closing Date fails to make any payment or otherwise fails to perform, the non-defaulting party's sole and exclusive remedy hereunder shall be to terminate this Agreement and either retain as liquidated damages or have returned, as appropriate, all earnest monies paid hereunder. Purchasers are lulled by the symmetry of this language.