Homebuyers purchasing a new house or lot in a housing development need to be savvy about what to expect from the builder or developer. After all, most buyers choose a specific housing development, at least in part, because of the added amenities and infrastructure being offered.
Bill Gilligan, regional president for Toll Brothers’ Washington, D.C., division, said it is a standard part of the approval process for any new community for the builder to agree to construct roads and install utilities to serve the homes in the development. If amenities such as a clubhouse or golf course are part of the developer’s plans, then they also are provided by the builder.
“Generally, these improvements are bonded by the county and/or state to ensure completion,” Gilligan said.
A developer’s obligations to provide infrastructure and amenities differ, however, from one municipality to another.
Kinley Bray, a lawyer specializing in land use and zoning with Arent Fox’s D.C. office, said, at a minimum, developers must provide access to each lot, parking (including overflow parking for additional vehicles) and easements for owners to access their properties through common areas.
In large communities, the developer may be required to dedicate land for schools, parks or conservation areas and sometimes even make improvements to area roads if the development is likely to have a significant effect on local traffic.
Toll Brothers recently had to make such road improvements around its new development, Dominion Valley, off Route 15 in Haymarket, Va., Gilligan said.
Sales representatives of new housing developments generally provide buyers an overview of what is planned for any given community, but Gilligan encouraged purchasers also to check with the local municipality and review the approved development plans themselves.
“Confirm what the developer and builder have committed to construct and when,” he advised.
Bray agreed, noting that most metro-area cities and counties have preliminary plat documents available online. More information can be found by calling the county or city zoning office.
Buyers also should remember there may be more to purchasing a home in a new development than the house price itself and consider those extra costs before signing a contract. These extra costs may include homeowners association fees and any annual assessments to cover community costs.
Bray encouraged buyers to be vigilant and take the time to review those HOA documents. “That’s where you look for the red flags,” she said.
Bray also cautioned people to factor in the level of progress of their prospective development. If they are among the first owners in a development proposing 400 units, will they have to absorb costs for all of those units even if they are one of only 25 current owners? Given the uncertain economy and the delays in many housing developments’ plans, it’s important to consider things for the long haul.
