By Foster Boline Group
A builder's contract is the one document that decides who pays when plans change, schedules slip, or something fails after closing. Most purchasers sign it with excitement and read it in a hurry. We help Knoxville shoppers slow that process down so every page gets a fair look. Our guide covers the items we flag most often, and it is general information rather than legal advice.
Key Takeaways
- Scope and specs: Plans, finishes, and allowances should be written out in detail so nothing is left to memory.
- Payments and deposits: Deposit size, draw schedule, and refund terms deserve close reading.
- Schedule and delays: Completion dates need clear definitions and fair rules for weather and supply delays.
- Warranty and disputes: Coverage limits and dispute steps matter as much as the price.
Scope, Plans, and Allowances
A contract should attach the plans, specifications, and allowance amounts so the home that gets built matches the home that was promised. Permits for new homes come from the City of Knoxville or Knox County depending on the lot, and the permit record can confirm that approved plans exist.
Scope Items to Confirm
- Plans and specifications: Attached drawings should list square footage, ceiling heights, and structural options.
- Allowances: Dollar amounts for flooring, lighting, and appliances show what upgrades will cost beyond the base price.
- Lot and site work: Site grading, driveways, retaining walls, and utility connections should be listed as included or excluded.
Hilly East Tennessee terrain can add site costs, so excluded items matter. We ask the builder to list them in writing.
Deposits, Draws, and Payment Terms
Tennessee real estate attorneys at Rochford Lawyers note that building agreements typically call for an initial deposit followed by regular progress payments. The timing and amount of each payment should be spelled out so the schedule matches the work completed.
Payment Questions to Ask
- Deposit handling: Ask who holds the deposit and under what conditions it is refundable.
- Draw schedule: Payments tied to completed stages protect the owner from paying ahead of progress.
- Lien protection: Ask how the builder pays subcontractors and whether lien waivers are provided at closing.
A title company or attorney can explain how liens work in Tennessee. We encourage clients to raise those questions before signing.
Schedules, Delays, and Move-In Dates
Weather, supply delays, and inspection timing can push a build past its projected finish date, and contracts commonly address delays outside a builder's control. A fair agreement defines start dates, estimated completion, and what happens when delays continue.
Schedule Terms to Review
- Start and completion dates: Dates should be tied to events such as permit approval or lot readiness.
- Delay language: Look for clear definitions of weather, supply, and inspection delays.
- Utility connections: Confirm who arranges water, sewer, gas, and electric service, including the Knoxville Utilities Board where it serves the lot.
Move-in plans, rate locks, and lease endings all depend on the schedule. We help clients build cushions into those plans.
Warranty, Walkthroughs, and Closing Items
Rochford Lawyers notes that builder warranties often describe more about what is not covered than what is covered, so the fine print deserves attention. Tennessee's residential property condition law generally exempts never-occupied new homes, which raises the importance of warranties and inspections.
Checks Near the End of the Build
- Warranty terms: Note the length of coverage for workmanship, systems, and structure.
- Independent inspections: Many shoppers schedule one at the framing stage and another before closing.
- Punch list: Written lists of unfinished items should be tied to a deadline for completion.
A builder's own inspection does not replace an independent inspector's view. We connect clients with local inspectors when they ask.
License Status, Disputes, and Legal Review
Tennessee licenses contractors through its Board for Licensing Contractors, and public records let homeowners confirm a builder's status. Rochford Lawyers also cautions that builder-supplied contracts can be one-sided, so attorney review is wise before signing.
Final Questions Before Signing
- License and insurance: Verify the builder's license and ask for proof of insurance.
- Dispute process: Mediation or arbitration clauses affect where and how a claim would be handled.
- Attorney review: A real estate attorney can explain terms and suggest edits.
Negotiation is normal, and many builders will adjust language when asked. We help clients prioritize which changes matter most.
FAQs
Should an attorney review a new construction contract Knoxville builders provide?
Yes, because builder contracts can favor the builder, according to Tennessee real estate attorneys. A review can catch warranty gaps and unclear payment terms. We are happy to coordinate with the attorney you choose.
Can I still get an independent inspection on a new build?
Yes, and many shoppers schedule one at the framing stage and again before closing. Independent inspections can catch issues before walls are closed and finishes are installed. We can share names of local inspectors.
What are common extra costs beyond the base price?
Upgrades above allowance amounts, site work, landscaping, and utility connections can add to the total. A detailed list of inclusions helps avoid surprises. We ask builders for those details early.
Contact Us at Foster Boline Group
Contact us today at Foster Boline Group. Share a builder's draft contract with us, and we will help you flag the terms that deserve a closer look with your attorney.
