Friend looking to buy a pre-construction townhouse, am I right to be wary of these contract conditions?

I wouldn't sign with those clauses.

There are a lot of common issues that arise with new builds. One of the most common is that people select their finish items like flooring, countertops and paint colours from small sample sizes in a different room from the room that it is being installed in. When installed, these items often look different than what the buyer remembers and often times screams foul and wants them removed. Ok, I can see that the clause addresses this.

But cracks, door sagging, and deviations from specs of nearly every finish item - no way would I sign that. You'd have no way of knowing what you would be getting.

Although, I will tell you that we were looking at a home under construction a couple of years ago on Vancouver Island and asked the builder's Realtor if he would supply us with a list of specs and finishes for the home. The response was that the builder doesn't have it but that "the builder uses only the best". We passed on the house and were so glad that we did cause we saw the listing for it when it was finished and it wasn't anything that we liked at all.

Lawyer.

I can see why the builder puts those clauses in there just so they won’t have homeowners nitpick on every little minor differences but then it also opens up to protecting them from any major screw ups. Tough to say whether to pass on it or not. I’d go with the reputation of the builder and if it’s a new builder, I’d steer clear.

5.1 is pretty standard though.

Wow, these clauses are really Buyer Beware. It's like giving the builder a Get out of Jail free card.

I would not feel comfortable with those clauses, but then again I don't know if these clauses have been around for a while or they are relatively new or unique to the builder. I can understand some minor changes like variations of +/- 5% on dimensions, but having no such constraints to me is an indication of poor build planning.

+1 on what bobbings said - builder reputation is key.

You don't have much of choice. They are all like this... Esp in a seller's market. I can tell you first hand things are different from they depict in their drawings...for example, the house they shown in their picture seems way wider and larger than actual house... Initially I thought it was one messed up house, but walking around the neiboughhood, you realize they are all like this.

This should be illegal but clauses like this save the builder... Regardless.. I wish this is regulated better.

I am not sure why everyone's warning people about these clauses. Yes they look semi-shady, but they are in every pre-con contract. You are free to try and scratch these out with an offer, but the builder may not agree to it.

Good luck buying pre-con if you don't agree to these two.

Anikiri wrote: ↑ I am not sure why everyone's warning people about these clauses. Yes they look semi-shady, but they are in every pre-con contract. You are free to try and scratch these out with an offer, but the builder may not agree to it.

Good luck buying pre-con if you don't agree to these two.

Precisely this. Hence, have your lawyer review and move on. If there's something that's not standard and really off base then they'll let you know. But these contracts are here to protect the builder and only the builder. Allows them to literally do whatever they want. You ever see a builder worried about an unhappy purchaser? Nope.