How new-build contracts differ from resale — cooling-off, contingencies, and the timeline

Most Portland-metro buyers have done at least one resale transaction before they look at new construction. The familiar mental model — OREF residential sale agreement, 30-day close, financing and inspection contingencies, earnest money in escrow — gets applied to the new-build process and doesn't quite fit. Here's the side-by-side.

The form itself

Resale: Most Oregon resale purchases use the OREF (Oregon Real Estate Forms) standard residential sale agreement. The form is widely used, balanced between buyer and seller, and well-understood by every licensed broker in the state.

New build: Builders use their own contracts drafted by their legal teams. Each builder's form is different. Common elements appear across most of them (see our purchase agreement post) but specific language varies.

Practical implication: Set aside more time to review a builder contract than a resale contract. Allow 24–72 hours for first read. Bring a buyer's agent who has read several before.

Earnest money

Resale: Earnest money is typically held in the listing brokerage's trust account or in escrow. Returnable in defined contingency-failure scenarios. Often 1% to 3% of purchase price.

New build: Earnest money is often held by the builder directly (not in third-party escrow). Sometimes a larger initial deposit than resale (3% to 10%). May not be returnable in the same scenarios — specifically, design-center selections you've made may be non-refundable even if other contingencies are triggered.

Practical implication: Know what your earnest money commitment is, where it's held, and what the recovery scenarios are before signing.

Contingencies

Resale: Standard contingencies include financing (typically 21 days), inspection (typically 10 days), appraisal, and title. Each contingency provides a specified termination right with earnest money recovery.

New build: Financing contingency exists but is sometimes narrower (tied to a specific lender or specific terms). Inspection contingency is replaced by pre-close walkthrough rights — different mechanism. Appraisal contingency may or may not exist; if the home appraises low, the buyer typically must bring additional cash to close rather than renegotiate price. Title contingency exists but is rarely an issue on new construction.

Practical implication: New-build contingencies are not equivalent to resale contingencies. Read them carefully. Don't assume the protections you know from resale apply.

Inspection rights

Resale: Standard inspection contingency provides the buyer the right to inspect and terminate or renegotiate based on the inspection findings.

New build: Inspection rights are typically narrower. Builders provide pre-close walkthroughs (sometimes called "orientation walks") with the buyer and address punch-list items. Third-party inspection rights may be limited in some contracts — the builder may restrict when, by whom, and with how much notice the buyer can bring outside inspectors. See our inspection sequencing post for what to negotiate for.

Practical implication: Push for clear third-party inspection rights at all three key inspection points — pre-drywall, final, and 11-month walk.

Timeline

Resale: 30 to 45 days close, typical. Cash deals close faster (10–14 days). Long financing deals (jumbo, complex situations) extend to 60 days.

New build, finished inventory: 30 to 60 days, depending on when the home is actually finished and when the builder's lender can close. Often closer to 60.

New build, build-to-order: 6 to 12 months from contract to close, depending on plan complexity, weather, supply chain, and builder backlog. Sometimes longer.

Practical implication: If your lease is expiring or you need to coordinate the sale of an existing home, the timeline math is fundamentally different on new construction. Build in buffer.

The walk-through

Resale: Final walk-through happens the day of close. Confirms condition is as agreed. Limited remedies if issues are found at the walk-through.

New build: Pre-close walkthrough is a structured event, often a day or two before close, with the builder's customer-service rep and ideally your inspector. Punch-list items get documented in writing. Some items resolved before close; others rolled into post-close warranty.

Practical implication: This is one of the biggest differences in your favor on new construction. The pre-close walkthrough is a real opportunity to surface and document issues while you still have leverage.

Default and remedies

Resale: Specified remedies for buyer or seller default, typically including specific performance, earnest money forfeiture, and/or damages.

New build: Builder's remedies if the buyer defaults are typically liquidated damages (a defined dollar amount or percentage of price). Buyer's remedies if the builder defaults are typically more limited — often capped at refund of earnest money plus a specific compensation amount, with no right to specific performance.

Practical implication: Your remedies if the builder is late, defective, or changes the spec materially are typically narrower than they would be on a resale.

Closing process

Resale: Closes at a title/escrow company. Both parties sign closing documents. Funds disburse. Title transfers.

New build: Closes at the title company designated by the builder (sometimes the builder's affiliated title company). Builder's representatives may or may not be present. The home keys are handed over (sometimes at the closing, sometimes at the post-close walkthrough).

Post-close

Resale: Once the deed records, the seller is essentially gone. Defects you find post-close are typically your problem (subject to disclosure obligations and any contractual representations).

New build: The builder has ongoing obligations through the warranty period — 1 year of workmanship, 2 years of major systems, 10 years of structural defect. Customer service from the builder is part of the deal for that period. See our 11-month inspection post for what to do with the workmanship warranty before it expires.

What does NOT exist in Oregon: a statutory cooling-off period

Some states have statutory cooling-off periods for new home purchases — a window (often 3 days) where the buyer can rescind without penalty. Oregon does not. Once you sign the builder contract and your earnest money is committed, you're committed under the terms of the contract.

This is a strong argument for not signing the contract the day you tour the model home, even if the on-site agent pushes for it.

The summary

The fundamentals of buying real estate are the same on a new build as on a resale: you're paying real money for a real asset, both parties are bound by a written contract, and your representation matters. But the specific contract terms are different enough that "I've bought houses before" doesn't fully prepare you. Read the contract. Bring an agent who has read these contracts before. Allow time.

Or, said more simply: don't sign on the first tour. Take the contract home, read it overnight, talk it through with Kaz the next day, and decide with sleep behind you.