Residential Construction Agreement (Page 2 of 6) in pdf

Payments.

The contract price will be paid as follows:

as a deposit upon signing the contract, receipt of which is hereby

acknowledged.

THE BUYER/OWNER OF A ONE-FAMILY OR TWO-FAMILY RESIDENTIAL DWELLING UNIT HAS THE

RIGHT TO HAVE ALL DEPOSIT FUNDS (UP TO 10 PERCENT OF THE PURCHASE PRICE) DEPOSITED

IN AN INTEREST-BEARING ESCROW ACCOUNT. THIS RIGHT MAY BE WAIVED IN WRITING BY THE

BUYER/OWNER. The failure to waive the escrow requirement may result in an extra charge to OWNER at the

time of closing. The BUILDER shall be entitled to all interest accrued on the account.

Buyer/Owner hereby WAIVES the request for escrow of any portion of the deposit monies

received.

Buyer/Owner hereby requests BUILDER to escrow all deposit monies received, up to 10% of

the purchase price, to be held pursuant to Florida Statute 501.1375. In this event, BUILDER

may borrow money in an amount equal to the funds held in escrow for construction purposes

only, in which case any interest which the BUILDER pays on such loan shall be paid by

Buyer/Owner at time of closing, but the Buyer/Owner shall be credited for any interest

accrued on the escrow account. Any deposit monies received from Buyer/Owner in excess of

10% of the purchase price, or for change orders, if any, shall not be held in escrow by

BUILDER or be otherwise restricted.

Based on applications for payment submitted by Builder, Owners shall make progress payments

toward the contract price in accordance with the Construction Draw Schedule of Owners construction

lender as work is completed and certified by Owners' construction lender. Owners will pay the cost of

each inspection for each draw request. (The Construction Draw Schedule is attached to this contract

and incorporated into it as Exhibit C.)

Owners agree to make the progress payments within five (5) days of certification by Owners'

construction lender. Payments due and unpaid shall bear interest at the rate of 1 2 % per month

payable to Builder from the date the payment is due. If Owners fail to pay Builder within seven (7)

days of the date the payment is due through no fault of Builder, upon three (3) additional days written

notice to Owners, Builder may stop the work. Builder may keep the job idle until such time as

payments that are due to Builder are paid.

Acceptance, Final Payment, and Occupancy.

Upon receipt of written notice that the work is ready for final inspection and acceptance, Owners will promptly

inspect the work. When the Work receives a certificate of occupancy, Owners will promptly pay (or cause to

be paid) the balance due under the contract less an amount equal to the cost to complete any missing or

unfinished punchlist items.

Builder agrees to provide Owners with a Contractor=s Final Affidavit stating that all subcontractors and

suppliers have been paid or showing those unpaid and the amounts thereof. The amounts withheld for

punchlist items will be paid to Builder immediately upon completion of each of the punchlist items. Occupancy

will be granted to Owners when construction is substantially completed, the certificate of occupancy is issued,

and Builder receives payment of the final draw (including payment for all change orders and overages of

allowances), less any money held for incomplete items.

Commencement and Completion.

The work will begin promptly after Owners have obtained the financing referred to above, any other

contingencies are cleared, all permits have been issued and Owners provide Builder with a title report

containing a correct statement of (a) the recorded legal title to the property on which the residence is to be

built and (b) Owners' interest therein at the time of the signing of this contract. The work will be substantially

completed within

days (

) from the date all the contingencies are

met.

Any time lost by reason of change in plans or specifications requested by Owners, other acts of Owners,

strikes, weather conditions not reasonably anticipated, or any other conditions that are not within Builder's

238741.DOC

2 of 6

KCL 2004

Residential Construction Agreement Page 2

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