Establishing secure connection…Loading editor…Preparing document…

Real Estate New Build Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

REAL ESTATE NEW BUILD AGREEMENT

This Real Estate New Build Agreement (the Agreement) is entered into as of by and between Buyer Name: and Builder Name: .

RECITALS

WHEREAS, Builder is a licensed builder engaged in the construction of new residential real property; and WHEREAS, Buyer desires Builder to construct a new residence and associated improvements on the Property described below on the terms and conditions set forth in this Agreement; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows.

PROPERTY IDENTIFICATION

SCOPE OF WORK & PLANS

Builder shall construct a new single-family residence in accordance with the Plans and Specifications prepared by: and the Specifications attached as Exhibit A to this Agreement. Any discrepancy among the Plans and Specifications shall be resolved pursuant to the change order procedures set forth herein.

PURCHASE PRICE, DEPOSITS AND PAYMENT TERMS

Earnest money shall be delivered to Escrow Holder on or before and held in escrow subject to the terms herein. The remainder of the Purchase Price shall be paid at Closing, subject to adjustments for allowances and approved change orders.

CONSTRUCTION SCHEDULE; POSSESSION

Construction Commencement Date: Estimated Substantial Completion: Possession Date: .

Time is of the essence. Liquidated damages for failure to achieve Substantial Completion by the Estimated Substantial Completion shall be per day unless excused by Force Majeure or Buyer-caused delay.

INSPECTIONS, APPROVALS AND WARRANTIES

Buyer shall have the right to conduct inspections at reasonable times. Builder shall obtain and pay for all required permits and approvals. Builder warrants that all work shall be free of material defects in workmanship and materials for a period of from Substantial Completion. This warranty is supplemental to any manufacturer warranties.

CHANGE ORDERS

All changes to the Plans, Specifications, or Contract Price shall be made only by written Change Order executed by Buyer and Builder specifying the change, any adjustment to the Contract Price, and any change to the scheduled completion date. Buyer acknowledges that Change Orders may increase the Contract Price and time for performance.

DISCLOSURES

Lead-Based Paint Known: Yes No

Known Mold or Moisture Conditions: Yes No

Prior Structural Damage or Repair History: Yes No

INSURANCE, RISK OF LOSS AND INDEMNITY

Builder shall maintain commercial general liability insurance, builder's risk insurance covering physical loss during construction, and workers' compensation as required by law. Title and risk of loss shall remain with Builder until Closing unless otherwise agreed in writing. Each party shall indemnify the other for claims arising from that party’s negligence or willful misconduct.

TITLE, CLOSING, POSSESSION

Anticipated Closing Date: Closing Location:

DEFAULT, REMEDIES AND TERMINATION

If Buyer fails to perform payment obligations, Builder may suspend work and pursue damages, including retention of deposits as liquidated damages to the extent permitted by law. If Builder fails to substantially perform within the time allowed (subject to excusable delays), Buyer may pursue specific performance, liquidated damages as set forth above, or termination and recovery of deposits, consistent with statutory rights.

GOVERNING LAW; ENTIRE AGREEMENT

This Agreement shall be governed by the laws of the state in which the Property is located. This Agreement, together with the Plans, Specifications, Exhibits and all executed Change Orders, constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below by certified mail, personal delivery, or overnight courier, and shall be effective upon receipt.

MISCELLANEOUS PROVISIONS

Severability: If any provision is held invalid, the remainder shall remain in full force. Waiver of any breach shall not constitute a waiver of any other breach. Headings are for convenience only and do not affect interpretation.

Buyer:

By:

Date:

Builder:

By:

Date:

Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What the Real Estate New Build Agreement Covers

A Real Estate New Build Agreement is a formal contract that sets terms between a property owner or developer and a builder or general contractor for construction of a new residential or commercial structure. It defines scope of work, specifications, materials, construction schedule, payment milestones, allowances, change-order procedures, warranties, insurance requirements, permitting responsibilities, inspection regimes, dispute resolution, and closing conditions. The agreement allocates risk, clarifies who obtains permits, and establishes acceptance criteria and final delivery obligations to support financing, lien management, and transfer of the completed property.

Why a Clear New Build Agreement Matters

A detailed agreement reduces disputes, protects investment, and clarifies responsibilities for timelines, costs, and quality during construction.

Why a Clear New Build Agreement Matters

Who Typically Prepares and Signs This Agreement

Identifying each party and their authority in the agreement helps ensure enforceability and smooth project administration.

  • Owners and developers who retain builders to deliver a completed structure under specified plans and budgets.
  • Licensed general contractors or construction managers responsible for coordinating trades, schedules, and compliance.
  • Lenders, title companies, or investors who require contractual milestones and mechanics lien protections before releasing funds.

Step-by-Step: Completing the New Build Agreement

Follow these steps in sequence to create a usable, enforceable contract and reduce later revisions.

  • 01
    Gather documents: Collect plans, specifications, permits, and lender instructions before drafting.
  • 02
    Define scope: Attach detailed plans and material specifications as exhibits.
  • 03
    Set milestones: Specify inspection, payment, and occupancy milestone triggers.
  • 04
    Sign and record: Execute all signatures and deliver executed copies to stakeholders.

Core Components to Include in a Professional New Build Agreement

A comprehensive agreement organizes responsibilities and protects parties by addressing schedule, cost, quality, and legal remedies in clearly drafted sections.

Scope & Plans

Precise description of work, referenced drawings, approved materials, and an exhibit list so parties share a single technical standard for acceptance criteria and change control.

Schedule

Milestone dates, critical-path items, and allowable schedule extensions for weather or permit delays to determine completion and liquidated damages.

Payment Terms

Contract sum, progress payment schedule, retainage percentage, provisions for change orders, and lender disbursement mechanics tied to milestones.

Change Orders

Written change-order procedure including approval authority, pricing method, and time impact analysis to avoid scope creep and payment disputes.

Insurance & Bonds

Required insurance types, minimum limits, builder's risk, and performance/payment bond specifications to allocate construction risk and protect lenders.

Warranties & Closeout

Warranty length, punchlist process, final acceptance criteria, lien waivers, as-built delivery, and final certificate requirements for occupancy and title transfer.

Essential Information Fields to Provide

Party Names: Full legal names
Contact Details: Phone and email
Property ID: Street and parcel
Contract Sum: Dollar total
Schedule Dates: Milestones
Insurance Limits: Coverage amounts

Where to Send and File the Completed Agreement

Routing depends on project participants: owner, contractor, lender, title company, permitting authority, and any recording requirements.

  • Owner/Developer: Keep an executed original; distribute copies to project stakeholders.
  • Contractor: Retains executed contract for jobsite, compliance, and claims defense.
  • Lender or Title: Provide executed agreement and required exhibits for loan conditions or title encumbrance review.
  • Local Agencies: Submit required bonds, permits, and notices to building department or county recorder.

How to Configure an Online Signing Workflow

Set up roles, authentication, and routing to match the contract signing order and lender requirements.

Field Configuration
Signer Roles Define owner, contractor, lender, and witness roles.
Authentication Use email, SMS code, or knowledge-based checks for identity.
Signing Order Sequential or parallel routing per lender instructions.
Audit Trail Enable timestamps, IP capture, and certificate of completion.

Digital Signing and Technical Considerations

Use an eSignature platform that supports audit trails, secure storage, and the authentication level required by lenders or regulators.

  • Authentication: Email, SMS, or stronger
  • Integrations: CRM and cloud storage
  • File formats: PDF, DOCX supported

Common Deadlines and Timing Expectations

Typical deadlines vary by project scale, local permitting timelines, and lender conditions; slab and framing milestones are frequently tied to draws.

Permit Review:

Local review often 30–90 days depending on jurisdiction and scope.

Initial Deposit:

Usually due upon contract execution or within 5–10 business days.

Progress Inspections:

Scheduled for foundation, framing, mechanicals, and final occupancy.

Substantial Completion:

Defined date for occupancy readiness and major draw release.

Final Closeout:

Punchlist completion and final lien waivers before final payment.

Key Project Milestones from Signing to Closeout

A sequential timeline clarifies obligations, payment triggers, and inspection points throughout the build lifecycle.

01

Contract Execution

Agreement signed and initial deposit paid to begin permitting and mobilization.

02

Permits Issued

Building permits secured and site-prep authorized to support construction start.

03

Substantial Completion

Work sufficiently complete for occupancy, triggering major payments and lender inspections.

04

Final Acceptance

Punchlist cleared, warranties initiated, and final payments released.

Common Preparation Mistakes to Avoid

  • Omitting detailed plans or specifications, which causes scope disputes and costly change orders during construction.
  • Using vague payment terms without milestone definitions, leading to withheld funds or contractor cash-flow problems.
  • Failing to require lien waivers and bond protections, which increases exposure to mechanics lien claims.
  • Not aligning the contract with lender conditions or permit requirements, delaying draws and slowing the project.

Consequences of an Incorrect or Incomplete Agreement

Cost Overruns: Increased project expense
Lien Exposure: Mechanics liens risk title defects
Delayed Close: Financing or occupancy delays
Warranty Disputes: Unclear post-completion coverage
Regulatory Fines: Permit noncompliance penalties
Contract Claims: Arbitration or litigation costs

Practical Examples from Real Projects

Two concise project examples illustrate how a New Build Agreement supports remote execution and compliance.

Martin Properties — Small Residential Build

Tim Martin used an online contract to manage multiple suburban builds with remote signatures and lender updates.

  • The digital workflow cut turnaround time on approvals.
  • Tim: "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Optica Ventures — Developer Workflow

Optica centralized agreements for multi-unit projects, standardizing payment milestones across contractors.

  • Standard templates reduced bespoke drafting.
  • Brian Fitzgibbons: "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

eSignature Vendor Comparison for New Build Agreements

Compare common vendor price points and basic feature availability relevant to executing construction and real estate contracts electronically.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year No cap No cap No cap

Practical Tips for Accurate, Efficient Completion

These operational tips reduce rework, avoid funding delays, and improve enforceability when executing new build contracts.

Use detailed exhibits
Attach complete plans, specs, and a schedule of allowances. Explicit exhibits prevent interpretation gaps and make change orders and cost allocation straightforward during construction.
Align with lender requirements
Confirm draw schedule, inspection requirements, and third-party certificates before signing to avoid blocked disbursements and unnecessary amendments mid-project.
Standardize lien waivers
Adopt a consistent lien-waiver process tied to each draw; require conditional and unconditional waiver forms to reduce title risk at closing.
Preserve electronic evidence
Retain signed PDFs with audit trails, certificates of completion, and any authentication logs to support enforceability and meet retention obligations.

Frequently Asked Questions About the New Build Agreement

Answers to common questions about signing, enforceability, notarization, and record retention for new construction contracts.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.