March 9, 2020 | Home Buying
Signing the Purchase Agreement
If you are buying a Lennar home, learn the details surrounding the Purchase Agreement.
After shopping the market, you find your dream home and decide to purchase. Your intent to purchase and the terms and conditions upon which you (and the seller) agree to complete this transaction are documented in a contract known as the Purchase Agreement. At Lennar, we want you to feel comfortable signing the Purchase Agreement, understand its components, and be aware of the steps our New Home Consultant (NHC) will walk you through the day you sign. This article gives a general overview of our Purchase Agreement and signing process; however, because our markets operate differently in new home sales and Purchase Agreements across the country, we encourage you to inquire with an NHC for related details.
Who must attend the signing?
Ideally, you and any co-buyer(s) of the new home should be present to sign the Purchase Agreement. However, if you cannot afford to travel to the Welcome Home Center (WHC), the NHC can email the Agreement (for your review), followed by a temporary link to sign, via DocuSign. In such cases, Lennar will provide you with wiring instructions for sending your earnest money.
If you come to the WHC to sign the Agreement, you can bring your real estate agent or broker with you, if you have one, though their presence is not required.
What do I bring with me?
When you arrive at the WHC, you and all co-buyers must have your driver’s license, passport, or other government-issued photo ID. You cannot bring the IDs for absent co-buyers. If you cannot appear at the WHC, you will email a scanned copy of your ID.
As a sign of good faith that you intend to buy the new home, you must bring a deposit, also referred to as “earnest money,” in the form of a personal check, cashier’s check, or money order. The amount of earnest money required will vary depending on the home price, community, and other factors. Once the Agreement is signed, earnest money is typically nonrefundable unless the Agreement expressly provides otherwise. For example, the Agreement may state you can cancel and get a refund of your earnest money if you are unable to obtain financing by a certain date (i.e., assuming you have taken all steps required by the Agreement to obtain financing). You should review your Agreement to determine if and when earnest money may be refunded.
What are the components of a Purchase Agreement?
A Purchase Agreement is a legally-binding contract to purchase a home. Its components, terms and conditions will vary by location (of our operations) and according to the local real estate market. What follows here is a general description of the most basic components of a Lennar Purchase Agreement. We have not included a description of every provision, so it is critical that you review your Purchase Agreement, because it will be the Purchase Agreement, and not this article, that will govern all matters concerning your home purchase:
Property Description – This may include the homesite number, elevation plan, and mailing address.
Purchase Price and Payments – A breakdown of the total purchase price of your new home, followed by a list of those payments you are responsible for, including the initial deposit (or earnest money) and estimated closing costs.
Buyer Information – You and all co-buyers will provide your contact information. Please note: the email address of the primary buyer should be the same address used to sign in to the myLennar account associated with this home purchase. Go to the end of this article to learn more about myLennar.
Financing – If you are financing the purchase of your home, you will provide information about the loan amount, loan type, and other details. The Purchase Agreement will also provide a timeline outlining the steps required of you to obtain financing.
Broker Information – If you have a real estate broker or agent, you will be required to disclose this to us. Lennar will only pay a commission to a broker or agent if a number of conditions have been met, including the execution of Lennar’s form cooperating broker agreement. Other conditions and restrictions may apply. Our NHC represents Lennar and is not your broker or agent.
Final Walkthrough – You will be given an opportunity to inspect the home prior to closing to note any defects in workmanship or materials or incomplete items. If Lennar agrees that such items are actually defective or incomplete and should be repaired, Lennar will make the repairs; however, repairs may not always be done prior to closing. Failure to take advantage of the pre-closing inspection can forfeit the repair of certain items if later discovered. Likewise, certain items will not be repaired if not identified during the pre-closing inspection.
Closing – Lennar will notify you of the date, time, and place for closing. The closing date provided in your Purchase Agreement is only an estimate.
Limited Warranty – The Purchase Agreement will include a Limited Warranty, a copy of which you should review before you sign the Purchase Agreement. The length and scope of the Limited Warranty will vary based on location and the type of home you are purchasing.1
What else? The Purchase Agreement will include various amendments and addenda that address other topics. You will only sign those amendments and addenda that apply to you and your purchase. For example, an FHA/VA Financing Addendum will only be necessary if you plan to use FHA/VA financing.
Lennar will typically provide you with additional disclosure documents that further inform you about the home, community, and surrounding area. You should review all materials before signing the Purchase Agreement. Such documents may include a more detailed price list showing the fluctuating costs of a new home based on its floorplan, square footage, elevation, and number of stories, followed by a copy of the marketing floorplan you chose for your new home. You might get a list of the Everything’s Included® features in your new home.2 Any information relating to a homeowners association, including the conditions and restrictions (CC&Rs) that will govern your home and the community, will also be provided.
Once again, we wish to remind you that these are very general descriptions, and the provisions of your Purchase Agreement will differ in their language depending on where you decide to purchase. For this reason, you should carefully read over your Purchase Agreement before signing to understand the terms and conditions that apply to your purchase.
We hope this article has given you some insight into the components of the Purchase Agreement and the expectations associated with its signing. If you have any questions, please do not hesitate to contact a Lennar NHC.
What is myLennar? myLennar is a free, online account that evolves with you as you shop, buy, and own a new Lennar home. With a myLennar account, you can save your favorite floorplans, receive construction updates, access new home documents, and more! Please note: if you sign your Purchase Agreement prior to creating a myLennar account, our system will automatically create one for you, using the email listed for the primary contact as the username. The owner of this email will then receive a message in their inbox with a temporary password to their new myLennar account.
1 Lennar Limited Warranty (“Limited Warranty”) consists of: (a) a limited 1-year warranty on workmanship, (b) a limited 2-year warranty on systems, and (c) a limited 10-year warranty on structural elements. Exclusions apply. Proper maintenance of your Home is vital; failure to perform regular required maintenance can limit your Limited Warranty rights. Claims must be submitted as soon as possible and in no event later than the expiration date of the applicable limited warranty. Lennar has no obligation with respect to claims submitted more than 30 days after the expiration of the applicable limited warranty. Homeowner must provide Lennar with prompt and complete access to inspect and investigate claims and make repairs, and cooperate fully in the investigation of any claim. Failure to provide access to the home shall void the Limited Warranty with respect to that claim. Lennar reserves the sole right to determine the repairs and/or replacements necessary to meet the standards of the Limited Warranty, and reserves the option to repair, replace or pay homeowner the reasonable cost of repair/replacement for any warranted and covered claim. Disputes are subject to mediation and binding arbitration. State law may affect the terms of the Limited Warranty. See a New Home Consultant for details or to obtain a copy of the Limited Warranty.
2Please see your New Home Consultant and/or home purchase agreement for actual features designated as an Everything’s Included feature.
This is not an offer in states where prior registration is required. Void where prohibited by law. Copyright © 2019 Lennar Corporation. Lennar, the Lennar logo, Everything’s Included, and the Everything’s Included logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries. Date 09/19