Understanding Builder Contracts
A resale purchase in Louisiana usually runs on a standard agreement. A new build does not. The builder's contract was written by the builder's attorney, and it protects the builder.
The short version. New-home builder contracts differ from standard resale agreements. The terms that matter most are deposit handling, completion and delay language, change-order policy, inspection access, and what the warranty actually covers and for how long.
What I read first
- Deposit terms. How much, when it becomes non-refundable, and who holds it.
- Completion and delay. Is there a firm date? What extensions does the builder get, and what are your options if the home runs months late?
- Change orders. What they cost, when the window closes, and whether the builder can substitute materials.
- Inspection access. Whether you may bring an independent inspector, and at what stages. Some contracts restrict this. It's worth knowing before you sign.
- Warranty. What's covered at one year, two years and ten years, who services it, and what voids it.
- Dispute resolution. Many builder contracts require arbitration. That's not automatically bad, but you should know it's there.
- Lender and title requirements attached to any incentive.
The practical advice
Don't sign in the sales office on the first visit. Take the contract home, let me read it with you, and ask your questions in writing so the answers are in writing. A good builder won't mind; that's a useful signal in itself.
Not legal advice. I'm a REALTOR®, not an attorney. For contract interpretation or anything you're unsure about, have a Louisiana real estate attorney review it. I'll tell you plainly when I think that's warranted.
Questions buyers ask
Is a builder contract negotiable?
Parts of it are, though builders are far less flexible than individual sellers. Deposit handling, completion timelines, inspection access and warranty detail are worth asking about. Have your agent read it before you sign, not after.
What happens if my build is delayed?
That depends entirely on the delay language in your contract, which varies by builder. Some give generous extensions to the builder with little recourse for you. Know that before you sign, especially if you're selling a home or ending a lease on a schedule.
Is my deposit refundable?
It depends on the contract and the stage. Deposits on new construction often become non-refundable at defined milestones. Read the terms and understand your exits.
Can I use my own lender?
Usually yes, though the builder's incentive may be tied to using theirs. You can often take the incentive and still compare — just run both offers side by side with all fees included.
Information is believed reliable but not guaranteed and is subject to change. Builder terms, incentives, pricing and availability change frequently and must be confirmed directly with the builder. Nothing here is legal, tax, insurance or lending advice.
About to sign a builder contract?
Send it over before you sign. I'll read it with you and flag what matters.