In his “Legally Speaking” column, Jayson Schwarz writes that when purchasing a new home or condominium, consumers should be aware of important legal issues relating to the substitution of materials and closing delays.  

Schwarz explains that many of the protections consumers enjoy relating to substitutions only apply if the purchaser abides by the terms of their Agreement of Purchase and Sale (APS).

If they do abide by their APS, and the builder makes changes to the materials the purchaser has selected, these substitutions must be of an equal or greater quality. Further, if these substitutions are made without the purchaser’s consent, this may be sufficient cause for the purchaser to terminate their APS, recover their deposit and claim damages to a total of $20,000. In other cases, substitutions made without the purchaser’s consent may entitle them to force the builder to reinstall their original selections, or to receive a cash settlement. In order to determine how best to proceed in these types of situations, it’s recommended that new home buyers consult with a lawyer.

On the topic of delayed closings and occupancies, Schwarz highlights a number of scenarios. For example, if the builder provides proper written notice about the delay, the purchaser will not be compensated for the inconvenience. However, if proper notice is not given, the homeowner may be compensated for allowable expenses, up to a maximum of $5,000. Schwarz also cautions new home buyers who are asked to sign an amendment when there is an extension on the home’s closing. He advises that the amendment not be signed, otherwise all time periods will be reset to the date of the extension.

In closing, Schwarz writes that most builders will work hard to ensure customer satisfaction. However, he encourages purchasers to consult with their lawyer if they have any questions.