Most new construction home builders are not regulated by a real estate commission, and therefore in our opinion, “play by their own rules.” Because there is little to no oversight concerning contracts in the industry, it is our recommendation that you have legal representation in the transaction process.
Most builders use their own contracts (as opposed to an Association of Realtors contract), which have been drawn up by lawyers to favor their position. Although most builders will not accept an amended contract, an Attorney can help you understand the terms of the document of what you are about to sign (or not sign).
In addition to retaining an attorney, we also recommend you hire Realtors like Crystal and me. We can help you find the right builder AND community, as well as help you with the overwhelming process of choosing options, upgrades, floor plans, elevations, lot selection, color schemes, etc. Also, a Realtor should help with the hiring of a home inspector (recommended even for new construction) and should assist you in the final walk-through inspection.
The biggest reason, however, for hiring an Attorney for new home construction is RESPECT. Once the builder, and his representatives, know that you have retained an Attorney, we find the process is treated with much more care and precision for fear that if the job is not done right, they (the Builder) could get sued. In addition, without legal representation, Builders will often try to bully or pressure the purchaser to accept something performed insufficiently or to close early with the promise of proper completion in the future.
Also remember, the title company or closing firm is often affiliated with the Builder and does not represent your best interests. We find that when you have an Attorney representing you, closing documents are prepared in a much timelier manner and are much more accurate.
The bottom line is that although Builders may seem as though they have your best interests at heart, they simply do not. It is a business transaction, and they are in business for themselves. In our opinion, the most important reason to be represented by an Attorney is because of the inherent conflicting interests of the parties.