For those planning to buy new homes or condo preconstruction properties. Be aware. Builders in Florida are inserting two types of cancellation clauses: an escalation clause that says they can raise the home price if material costs go up significantly, or a duration clause that states the builder can cancel if they are unable to start construction within six months. Similar clauses relating to builder financing have also been used in Ontario in the past to cancel contracts. Be sure to raise these issues with your real estate agent and lawyer and have them review all contracts carefully before going firm.
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