Constructing a New Home:

If your thinking of hiring a builder/contractor to build your home, ve sure you have all the relevant information before proceeding.  If you would like the Sell Halifax Team to assist you with this very important process, please give us a call at 800-474-3948, we would be happy to lend our expertise.

Plans

A detailed set of plans must be attached to the Agreement of Purchase and Sale or the Building Agreement. Make sure you understand the plans and are sure that the plans properly describe the house you are expecting to buy. The plans should include detailed drawings of each floor plan as well as detailed drawings of each exterior. Any changes to these plans are to be initialed by all parties to the agreement.

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Specifications

A detailed set of specifications are attached to the Agreement of Purchase and Sale or the Building Agreement. Make sure you comprehend the specifications and are sure that the specifications specifically describe the details of the house you are expecting to buy. Flooring, cabinets, fixtures, finish work, painting, electric work, cable outlets, construction details, plumbing, windows, doors, landscaping, driveways, paving, concrete walkways, etc. should all be explained in the specifications.

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Building Restrictions

Source a copy and review them before you sign the agreement conditional upon the building restrictions and restrictive covenants, if any, being to your satisfaction

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Survey

If you are building your home pursuant to a Building Agreement with a General Contractor entered into after you have purchased your lot, your Building Agreement should state that the survey work is to be certified in your name and not the name of the general contractor. In any event, either agreement should stipulate that the survey stakes are to be in the ground and visible upon closing, as the stakes are often knocked out of the ground or buried during construction. 

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Building Codes, By Laws, and Regulations

Stipulate in your agreement that the builder or contractor is to build the house in accordance with all applicable building codes, subdivision requirements, restrictive covenants, and all Federal, Provincial and Municipal by-laws and regulations. 

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Closing Date

If the closing date is of importantance to you, specify in the Agreement what is to happen if the house is not ready for you to move in on the closing date. Are you prepared to delay the closing if it becomes necessary?

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HST - Harmonized Sales Tax

The Agreement must specify the details of the HST and the HST rebate. Further, the Agreement must state that the appropriate HST forms and HST assignment forms, if applicable, are to be signed and delivered prior to closing.

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Mechanic's Liens

The Agreement must specify the details of the 10% Mechanics Lien holdback and verify who is to hold funds, under what conditions they are to be released and who is to collect the interest on the holdback.

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Extras

If the work is not specified in your Agreement expect to pay extra for it. The builder will be charging you upon closing for all extra work you have added, in addition to your contract price.

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Allowances

You may be making your own arrangements pursuant to your Agreement for the installation of carpets, cabinets, fixtures etc. If so, your Agreement must specify how these items are to be paid for and how the payment is to be adjusted upon closing if at all. If the GST is being assigned to the builder, it may be easier for the builder to make all the payments and for any required adjustments to be done upon closing.

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Credits

With your consent the builder may not complete some of the work required by your Agreement and you will be given a credit against the purchase price for the cost of this work.

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Deficiencies

Your Agreement should specify that any work required by your Agreement to be completed upon closing which is not completed, shall result in a holdback of funds pending the completion of the work to your satisfaction. You should hold back funds in an amount sufficient to cover your cost to have the work completed. You should designate a pre-determined dollar amount for each item to be completed and a date that the funds held back are to be released to you so you can see to the completion of the work by another contractor.

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New Home Warranty

Your Agreement should specify that all warranty forms are to be signed and delivered prior to closing.

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Occupancy Permit

Your Agreement should specify that you are to be in possession of an unconditional occupancy permit prior to closing. If the actual permit is not available then you should at least confirm with the municipality that the required inspections have been completed to the satisfaction of the municipal inspector. You should hold back funds until the actual permit is delivered to you. 

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Well and Septic Certificates, Water Tests

In the event that your home is not on municipal services your Agreement should stipulate that satisfactory Well and Septic Certificates and Water Tests are to be supplied to you as soon as they become available and in any event prior to closing.

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Insurance

If you are having a house built on a lot you have already purchased, your Building Agreement should have attached to it your insurance policy and the builders insurance policy, each outlining the protection of each respective interests.

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Damage and Cleanup

Your agreement should specify that the builder is responsible to repair any damage to roadways, curbs, and adjacent lands. Further, your agreement should stipulate that the builder is responsible to remove all debris, rocks and excess fill from your property as well as to remove all tools, scaffolding, and surplus material from your property upon closing. 

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Permits, Licenses, Inspections

Your Agreement should specify that the builder is responsible to obtain and pay for all the necessary permits, licenses, and inspections required to complete the agreement. 

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Pre-Closing Inspection

Prior to closing, you should do a final inspection, and make a deficiency list of anything that you were expecting to be done as per your Contract, that is not complete or done to your expectations.