Building a new home has many benefits over buying an existing one. However, the process of having your home built can be very time-consuming. You'll also face many legal issues along the way that most home buyers don't have to deal with when purchasing a home that's already built.
First, Purchase the Land
You can't start construction until you find and purchase the land. When you find a location you like, you may need to hire someone, like an engineer, to make sure there aren't problems with accessing utilities, to identify the less sturdy or moist parts of the land, and to determine whether any septic tank issues exist. These are just a few of the possible issues.
Check Local Zoning Laws
You probably want to build your home in an area that is already zoned for residential use. However, even residential zoning laws may have restrictions on new construction. If you want your home to have three stories but the zoning law says that two is the maximum, you have no choice unless the zoning board will make an exception. Understand this kind of zoning issue before you purchase the land but definitely before construction begins.
Address Construction Loan Issues
Financing your new home is more complex than getting a mortgage for an existing home. This is because you need to consider all costs beforehand so that you don&'t run out of funds. This includes the cost of the land, amounts you need to pay each contractor, the cost of materials and appliances if not already included, and land excavation charges, plus the cost of any government building permits and legal fees. Moreover, the loan agreement you sign will include a lot of complex legal language.
Legal Problems With Contractors
When building a home, you need the help of many construction professionals. These may include architects, engineers, construction companies, air conditioning and heating specialists, and a wide range of others. Legal disputes commonly arise when building a new home. For example, there may be architect design mistakes, unnecessary delays in completion, accidents at the construction site, and problems with the installation of defective equipment.
A Residential Real Estate Lawyer Can Help
The law surrounding construction of your home is complicated. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, please contact a residential real estate lawyer.