New construction feels like it should be the simplest purchase you'll ever make. Everything is new, the builder runs the schedule and the model home shows you what you're getting.
The contract is where it gets more complicated. A builder's agreement works differently from the standard North Carolina resale contract, and some of the protections buyers count on aren't there by default.
Here's what I'd want you to know before you sign one.
Builder contracts vs. Form 2-T
Most resale homes here sell on Form 2-T, the standard Offer to Purchase and Contract. NC REALTORS and the North Carolina Bar Association approve it jointly.
Many builders, especially the national ones, use their own contracts instead. Their attorneys write them for the builder. Read them closely for how they handle delays, price changes and when your deposit can come back to you.
Builder deposits vs. Due Diligence Fees
In a resale, you usually pay a Due Diligence Fee directly to the seller, and it's generally non-refundable once paid.
Builders usually ask for a deposit instead, sometimes called a construction deposit or earnest money. That can sound safer. Many builder contracts, though, set milestones where the deposit stops being refundable. If construction runs months behind and you need to back out, the contract usually decides whether you get that money back.
The preferred lender incentive
Builders often offer closing cost or design credits if you use their preferred lender. Sometimes that's real savings. Sometimes the credit comes back through a higher rate or extra fees.
Before you take it, I'd want you to set the builder lender's Loan Estimate next to one from an independent local lender and compare the rate, the fees and what you'll pay over the first few years.
Q: Are builder deposits the same as Due Diligence fees in North Carolina?
A: No. A resale on the standard North Carolina contract usually includes a Due Diligence Fee paid to the seller, and it’s generally non-refundable once paid. Many builders, especially national ones, use their own contracts and ask for a construction deposit instead. Those contracts often set milestones for when the deposit stops being refundable, so read that section before you sign.