Buyer guide
Building a new home means picking your plan, your finishes and your lot. It's exciting, and it comes with its own contract, its own risks and its own timeline. Here's how to protect yourself from the first meeting with the builder to closing day.
Rule number one
Most disputes between buyers and builders come down to one thing: the contract wasn't specific enough. If the plans and specifications don't show crown molding, a tile backsplash or a particular brand of appliance, don't count on getting it.
The model home is a showcase, not a promise. Upgrades you see in the model are often extra, so confirm in writing exactly what's included in your house.
Builder contracts often disclose things like a nearby quarry, views that may change, smaller homes planned in later phases or possible school redistricting.
You're presumed to have read everything in the contract, whether you did or not, so read every page, and look around the wider area yourself.
Do your homework
Your money
Most builders give you a short window to show you can buy the home. After that, the contract usually isn't contingent on financing. If your finances change before the home is finished and you can't close, you'll likely lose your earnest money and deposits.
Who holds earnest money and construction deposits is negotiable. Builders often hold it and use it to build; a broker would hold it in a trust account. If a builder goes out of business mid-build, deposits can be lost, one more reason to vet the builder.
Builders usually want to be paid in advance for upgrades and custom changes, since they may make the home harder to sell to someone else. Expect to take some risk on those deposits.
Closing date
Weather, materials and inspections are often out of the builder's control, so most new construction contracts let the builder push back the closing date. If you absolutely need to be in by a certain date, for a lease ending or a school year starting, negotiate it into the contract.
Stay in touch with the builder throughout the build so a delay never catches you by surprise, and keep an eye on your rate lock if you're financing.
New doesn't mean perfect. We recommend an independent inspection before drywall goes up and again before closing.
Our home inspections guide →Know your rights
Several Georgia laws apply when you buy a newly built home. Here's what each one says in plain English, and what it means for you. This is a summary, not legal advice; for questions about your situation, talk to an attorney.
| The law | What it says | What it means for you |
|---|---|---|
| Right to Repair Act O.C.G.A. §§ 8-2-35 to 8-2-43 | Before you can sue a builder over construction defects, you must send written notice at least 90 days ahead. The builder has 30 days to respond, can inspect, and then has 14 days after the inspection to offer to repair, pay, or both. You have 30 days to answer, and not answering counts as accepting. Builders must include a notice of this process in your contract (O.C.G.A. § 8-2-41). | Keep the Right to Repair notice from your contract, report defects in writing, and answer every builder offer in writing and on time. Georgia Consumer Protection: Right to Repair ↗ |
| Written builder warranty Ga. Comp. R. & Regs. 553-7-.01 | Georgia's contractor licensing board requires licensed residential contractors to offer a written warranty on home construction contracts over $2,500, measured against national home building performance standards. | Get the warranty in writing and attached to your contract. Read what it covers, how long it lasts and how to file a claim. Weissman: warranty issues ↗ |
| Deadlines to bring a claim O.C.G.A. § 9-3-51, 9-3-30, 9-3-24 | Most construction-defect claims must be brought within 8 years after the home is substantially complete (up to 10 years in some injury cases). Other deadlines apply to property damage and written contracts. | A one-year warranty is not a one-year deadline to act, but don't wait. Write down problems as soon as you find them. § 9-3-51 ↗ |
| Hidden defects Georgia case law | Georgia generally follows "buyer beware," but buyers may be able to bring a negligence claim against a builder for hidden construction defects, and fraud is always an exception. | Inspect anyway, ask questions in writing, and keep every builder promise in the contract. Weissman: caveat emptor ↗ |
| Liens from unpaid trades O.C.G.A. § 44-14-361, 361.2, 366 | A subcontractor or supplier the builder didn't pay can file a lien on the home within 90 days of their last work. At closing, the builder signs a sworn statement that everyone has been paid, which protects a buyer from those liens, and lien waivers follow forms set by law. | Your closing attorney checks for liens and collects the builder's affidavit. Ask whether your owner's title insurance covers lien risk. § 44-14-361.2 ↗ |
| Contractor licensing O.C.G.A. § 43-41-17 | Residential and general contractors must be licensed by the state. An unlicensed contractor can't enforce its contract or file a lien, and the Right to Repair Act doesn't apply to contractors who aren't required to be licensed. | Check your builder's license before you sign. How to check a contractor's license ↗ |
| Earnest money held by a broker O.C.G.A. § 43-40-20 | When a real estate broker holds your earnest money, it must be kept in a separate, federally insured Georgia trust account that the broker's creditors can't touch. | Deposits held by a builder don't get these protections. Ask who will hold your money before you sign. |
| New condos: 7 days to cancel O.C.G.A. § 44-3-111 | The first buyer of a new condo unit can cancel within 7 days of receiving the developer's full disclosure package, and that right can't be waived. | Read the disclosure package as soon as you get it. § 44-3-111 ↗ · Buying a condo → |
Plain-English summaries based on the Official Code of Georgia, Georgia agency guidance and articles from Weissman PC, our brokerage's attorney. Laws change; confirm current requirements with an attorney.
After you move in
We'll email you the Georgia REALTORS® brochure Protect Yourself When Buying a Home to be Constructed, free.
Thinking about building?
The builder's sales team works for the builder. Having your own agent costs nothing extra in most new home sales, and we'll help you review the contract, upgrades and timeline.
Good to know: this is a general overview, not legal advice, and it may not apply to every home or builder. Consult the professionals of your choice before you sign.
We're real estate agents, not attorneys. Nothing on this page is legal advice. Laws change and every situation is different, so always consult an attorney about your specific situation. Attorneys you can contact: Weissman PC · Blasingame, Burch, Garrard & Ashley, P.C.