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  1. #1
    Join Date
    Aug 2018
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    8

    Default New Construction vs Preowned Closing/Contracts

    My question involves real estate located in the State of: Pennsylvania.

    We're buying a townhome, which includes property, from a builder in a new development. But they're wanting us to use their title company and said it's unusual for us to to have an attorney involved since it's new construction, so that sounded a bit odd to us. Also that there isn't an inspection. Is that standard practice? We've bought pre-owned homes before but not new construction.

    This particular unit was originally ordered by someone who had to cancel the deal due to a family issue. Based on a lot of research we've done it seems like a great deal, other units in this development get snapped up at asking price or get bid up, it's a pretty hot location with homes built in the last four years, all happy residents that we talked to, and more streets going in. We're paying cash. We have a very good realtor, but she's not a lawyer, so just wondering.

  2. #2
    Join Date
    Oct 2016
    Posts
    2,478

    Default Re: New Construction vs Preowned Closing/Contracts

    You take all lawyers to the closing you want to take. If you do it really doesn't matter which title company you use.

    If you want an inspection you can pay for one.

  3. #3
    Join Date
    Jul 2018
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    979

    Default Re: New Construction vs Preowned Closing/Contracts

    Quote Quoting Diver4242
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    We're buying a townhome, which includes property, from a builder in a new development.
    Please clarify exactly what you mean by "which includes property"?


    Quote Quoting Diver4242
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    But they're wanting us to use their title company
    Who are "they," and for what purpose do "they" want you "to use their title company"?


    Quote Quoting Diver4242
    View Post
    Also that there isn't an inspection. Is that standard practice?
    I've never heard of a piece of real property (including townhomes or condos) being sold/bought in an arms length transaction for market value without at least 2-3 inspections, and it would be hard to imagine any lender giving a mortgage without a full inspection.

    Is that really the only question you intended to ask?

  4. #4
    Join Date
    Sep 2010
    Posts
    18,746

    Default Re: New Construction vs Preowned Closing/Contracts

    Builders are slime.

    You, as the buyer, have the right to chose the closing company.
    You, as the buyer, have the right to have an attorney present or to have him review the documents in advance.

    In fact, it's not uncommon to have the buyer's attorney handle the closing.

    Your realtor isn't worth a plug nickel in these situations. They can't do closings. They can't provide legal advice.

  5. #5
    Join Date
    Mar 2013
    Posts
    16,509

    Default Re: New Construction vs Preowned Closing/Contracts

    The builder wants you to buy the property without doing your due diligence.

    Use your attorney.

    Get a qualified home inspection where I strongly suggest you follow the inspector around and see everything he sees, asks questions, and take pictures. Do not use a home inspector who is referred by your realtor. They rely on referrals and may overlook things that will effect the sale.

    It's no big deal about the title company. They are all pretty reputable and your realtor can tell you if there have been any issues.

    And remember, "I was told" is the most dangerous phrase in the English language so don't rely on anything you are "told" by anybody without verifying it.

  6. #6
    Join Date
    Aug 2018
    Posts
    8

    Default Re: New Construction vs Preowned Closing/Contracts

    The home includes the property, it's corner lot/end unit. I believe in most townhome purchases you don't own the actual land?

    "They" means the builder/sales office people. They said using their title company would expedite things and make it less expensive because they do all of the properties there.

    Those are my questions. Not sure what the "Is that really the only question you intended to ask?" thing was about.

    Thanks all for the quick responses1

  7. #7
    Join Date
    Jul 2018
    Posts
    979

    Default Re: New Construction vs Preowned Closing/Contracts

    Quote Quoting Diver4242
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    The home includes the property, it's corner lot/end unit. I believe in most townhome purchases you don't own the actual land?
    That's typically the case, which is why I asked what you meant when you wrote in your original post that you're "buying a townhome, which includes property." A townhome is property. Did you mean that, in addition to the customary townhome interest, you're also getting land?


    Quote Quoting Diver4242
    View Post
    Not sure what the "Is that really the only question you intended to ask?" thing was about.
    Your only question was whether inspections are standard, and it seemed like you already knew the answer to that, so I wondered if there was maybe more that you wanted to know.

  8. #8

    Default Re: New Construction vs Preowned Closing/Contracts

    It's your right to hire a Gold Coast property lawyer if you want. But inspections you have to pay for yourself.

  9. #9
    Join Date
    Dec 2018
    Posts
    162

    Default Re: New Construction vs Preowned Closing/Contracts

    A new home does not need an inspection because the City has been inspecting that property since before the foundation was built/poured. Also, a typical home inspector is not qualified to inspect a new construction dwelling. They are only good for telling you a faucet is dripping.

    If everything in the townhouse is brand new, what do you want the inspector to inspect...the framing?

    If he is a reputable builder, listen to him and use his escrow company because he has already proven himself.

  10. #10
    Join Date
    Oct 2016
    Posts
    2,478

    Default Re: New Construction vs Preowned Closing/Contracts

    Quote Quoting timothynates
    View Post
    It's your right to hire a Gold Coast property lawyer[/url] if you want. But inspections you have to pay for yourself.
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