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presale princess (part 2 of 2)
Presale frog? Or presale prince? luckycat girls know that investment in preconstruction real estate involves unique risks and potential gains.
- Check that the builder is licensed by the Homeowner Protection Office (HPO). The online Public Registry of Licensed Residential Builders is just one cat-click away.
- Read the details of the warranty. Homes built by Licensed Residential Builders must have 2-5-10 Year Home Warranty Insurance (at least). Confirm the specific details.
- Check the size. Sometimes, it matters. Bigger developers (with deeper pockets) may be less vulnerable to construction delays and cost overruns. This means they may be in a better position to complete even if construction or financing hiccups arise.
- Get an agent. A real estate agent experienced in representing presale buyers and familiar with new developments can help you weigh the risks and benefits of specific projects, and guide you through the purchase process.
- Read the fine print of your contract and the developer’s disclosure statement. Understand your entitlements. Understand the developer's.
- Confused? Get legal aid. Take your contract and documents to a notary for translation into plain English.
- Know the return policy. Under the Real Estate Development Marketing Act, you can rescind your purchase agreement by serving written notice to the developer within seven days of either the date that the purchase agreement is made, or the date that the developer gets a written statement acknowledging that the buyer has read the disclosure statement (whichever is later). Whew.
