Nilson Homes Contract Review: What Utah Buyers Need to Know Before Signing
If you’re thinking about buying a Nilson home in Northern Utah, don’t let the excitement of a new home push you into signing the purchase agreement before you understand what’s in it.
The Nilson Homes contract I reviewed is heavily written in favor of the builder. Your earnest money can become nonrefundable very quickly. Financing and appraisal protections are limited. Nilson Homes has cancellation rights that the buyer does not have. Construction dates are flexible for the builder but strict for the buyer.
The biggest concern comes after closing.
Under the agreement reviewed, the buyer gives up broad rights to pursue Nilson Homes for construction defects. The buyer’s contractually designated remedy becomes the 2-10 Home Buyers Warranty process, which includes its own definitions, exclusions, deadlines, damage limits, and binding arbitration requirements.
That doesn’t mean you should never buy a Nilson home.
It means you need to know what you’re signing, what you’re giving up, and what protection you actually have.
This article is educational and is not legal advice. Nobody at the SURE Group is an attorney and for legal advice we recomment that you contact a licensed Utah real estate attorney to review the actual contract, addenda, warranty certificate, and community documents before you sign.
Should You Buy a Nilson Home Without Your Own Realtor?
I don’t believe that’s a smart move.
The builder’s sales team may be friendly and helpful, but they work on behalf of the builder. They aren’t your independent representative. Their job is to explain the builder’s homes, incentives, contract, and process.
Your Realtor’s job should be to protect your side of the transaction.
A strong new-construction agent should be watching:
Your deposit
Your cancellation deadline
Your financing approval
Your appraisal risk
Your inspection rights
Your written selections
Your incentives
Your closing costs
Your warranty documents
Your future resale value
Your available remedies if something goes wrong
In my experience, builders rely heavily on real estate agents for qualified buyer traffic. They have no practical business reason to punish represented buyers by routinely giving unrepresented buyers better deals.
Walking into the sales office without an agent does not automatically give you the buyer-agent compensation as a discount. It does not guarantee a lower price, better incentives, better upgrades, or a more favorable contract.
You may simply be giving up representation while the builder keeps the same contract and pricing structure.
That is not a strategic trade.
The Nilson Homes Contract Is Not a Typical Buyer-Friendly Purchase Agreement aka REPC
Many Utah buyers are familiar with the state-approved Real Estate Purchase Contract (REPC) which is written very much in the favor of the buyer. It is laregely because of this buyer bias that the REPC has that motivated builders to not use it and to create their own contracts.
A builder contract is different than the REPC and the bias is of course in the builders favor.
The Nilson Homes agreement was prepared for the builder’s business model. It controls construction timelines, deposits, lender approval, material substitutions, warranty claims, buyer behavior, delays, and dispute resolution.
The contract review identifies Sections 6, 10, 12, 14, 25, and 27 as areas that deserve particular attention from a Utah real estate attorney.
The contract may be standard for Nilson Homes. That does not make it balanced.
“Standard contract” only means the builder uses it regularly. It does not mean the contract gives the buyer equal rights.
Your First Major Risk: The Two-Day Cancellation Window
The buyer’s broad cancellation period is extremely short.
According to the contract review, you have only two calendar days from the Offer Date to cancel for any reason and receive your earnest money back.
Calendar days can include weekends and holidays.
The Offer Date is generally the date the buyer signs or submits the offer. It is not necessarily the date Nilson Homes accepts the agreement.
Two different clocks may be running:
The Offer Date, when the buyer signs
The Effective Date, when Nilson Homes signs and accepts
Confusing those two dates could cost you your deposit.
The reviewed timeline includes these deadlines:
Earnest money is due within four calendar days of the Offer Date.
The general buyer cancellation deadline is two calendar days from the Offer Date.
Nilson Homes has seven calendar days from the Offer Date to accept or counter.
A completed loan application is due within two business days of the Effective Date.
A full loan commitment is due within seven calendar days of the Effective Date.
After notice of substantial completion, the buyer generally has 14 calendar days to close.
These dates should be placed on a written calendar immediately.
Do not assume someone from the builder, lender, or title company will remind you.
Your Earnest Money Can Become Nonrefundable Very Quickly
The contract review says the earnest money may be held outside a neutral escrow or protected trust account at Nilson Homes’ discretion. The buyer receives no interest on the funds.
After the initial cancellation window and builder acceptance, the deposit becomes largely nonrefundable except under the specific exceptions written into the agreement.
Before paying your deposit, get clear answers to these questions:
How much earnest money is required?
When is it due?
Where will it be held?
Is it being held in a protected escrow account?
When does it become nonrefundable?
What happens if financing fails?
What happens if the appraisal is low?
What happens if Nilson Homes cancels?
What happens to design or upgrade deposits?
Can Nilson Homes retain the deposit if it claims the buyer defaulted?
Don’t treat the deposit like money safely parked until closing.
Once the cancellation window closes, it is real money at risk.
The Financing Timeline Is Very Tight
The reviewed contract requires the buyer to submit a completed loan application within two business days after the Effective Date.
The buyer must then provide a full loan Commitment Approval within seven calendar days after the Effective Date.
That is not the same thing as a basic prequalification letter.
The contract review describes the required commitment as an approval subject only to verification of the buyer’s information and credit. If the buyer misses the deadline or delivers an approval with unacceptable conditions, Nilson Homes may have the right to cancel and keep the earnest money.
Seven calendar days is a fast turnaround for a complete underwriting decision.
A buyer should be prepared before signing the builder’s contract. That means having:
Income documents ready
Tax returns available
Bank statements available
Employment verified
Credit reviewed
Down payment funds documented
Existing debt evaluated
The current home-sale plan understood
A lender capable of meeting the deadline
Don’t sign first and hope the financing comes together afterward.
Conventional Buyers May Have No Low-Appraisal Exit
The reviewed agreement provides appraisal protection for certain FHA and VA transactions.
Conventional buyers may not receive the same protection.
According to the review, the buyer’s obligation to pay the purchase price is not generally contingent on a conventional appraisal equaling the contract price. FHA and VA buyers have a specific appraisal process, including a period to decide whether to terminate or continue when the appraisal is low.
For a conventional buyer, a low appraisal could mean bringing more cash to closing.
Consider this example.
You agree to pay $650,000 for the home. The appraisal comes in at $625,000. Your lender bases the loan on the lower value.
The $25,000 difference does not disappear. Depending on the loan and contract, you may need to cover some or all of it.
Before signing, ask:
Is there any conventional appraisal contingency?
Can the price be renegotiated?
How much appraisal-gap risk can you afford?
Are upgrades likely to receive full appraisal value?
What happens if the lender reduces the approved loan amount?
Is your earnest money protected if the appraisal is low?
Never assume a lender’s appraisal gives you an automatic right to cancel.
Your Interest-Rate Risk Continues During Construction
A new-build timeline can stretch for months.
Rates can change during that time. Rate locks can expire. The cost of extending a lock can be significant. Your income, debt, employment, credit, or loan program can also change before closing.
The contract review says Nilson Homes does not guarantee that financing will remain available on any particular terms. Comments about rates, rate locks, and timing are treated as opinions rather than promises. The buyer assumes the financial consequences of decisions about when to lock.
Your strategy should include:
A realistic payment range
A backup interest-rate scenario
A rate-lock plan
The cost of extending the lock
A cash reserve for closing
A plan if incentives change
A plan if underwriting must be updated
A plan if construction takes longer than expected
Qualifying at the beginning does not guarantee you will still qualify at closing.
Confirm Whether the Purchase Depends on Selling Your Current Home
The contract review identifies a blank in Section 6.h dealing with whether the buyer’s purchase is contingent on selling other real estate.
That blank matters.
If you need the proceeds from your current home to close on the Nilson property, the agreement needs to say exactly what protection you have.
If it does not, you may remain obligated to purchase the new home even if your existing home has not sold.
Before signing, confirm:
Whether the purchase is contingent on your current home selling
The deadline for listing your current home
The deadline for getting it under contract
What happens if that transaction fails
Whether your earnest money is refundable
Whether you are expected to qualify while carrying both homes
Whether bridge financing is required
Never leave a contract blank when that blank decides whether you can safely get out of the purchase.
Nilson Homes Has Cancellation Rights the Buyer Does Not Have
The reviewed agreement gives Nilson Homes at least two important cancellation rights.
Cancellation Based on Builder Costs
Section 25 allows Nilson Homes to terminate if the cost of labor, materials, or financing exceeds what it reasonably anticipated because of circumstances outside its control.
The buyer does not receive an equal right to cancel because interest rates increased, monthly payments became uncomfortable, moving expenses increased, or the buyer’s financial situation changed.
The contract review says the deposit is returned when Nilson Homes cancels under Section 25, but the buyer may not be reimbursed for other expenses such as:
Loan fees
Appraisal fees
Inspections
Rate-lock expenses
Attorney fees
Moving arrangements
Storage
Rent or lease decisions
Time taken away from work
Cancellation Based on Alleged Abusive Behavior
Section 27 gives Nilson Homes a cancellation remedy when it determines that a buyer has been verbally or physically abusive toward staff, agents, or contractors.
That provision deserves attorney review because the builder has discretion in deciding whether the buyer’s behavior crosses the line.
The contract review warns that this clause may also place the buyer’s deposit at risk, depending on the exact contract language, financing type, and timing.
A professional Realtor can serve as a communication buffer.
When something goes wrong, your agent should be able to document the concern, remove the emotion, request a specific solution, and keep the conversation productive.
Construction Dates Are Estimates, but Your Closing Deadline Is Real
Nilson Homes may have up to 12 months from the Effective Date to reach substantial completion, subject to broad delay provisions.
Possible excused delays include weather, shortages, labor problems, strikes, fire, flood, and other events outside the builder’s control.
Completion estimates are not guarantees.
Once Nilson Homes gives notice of substantial completion, however, the buyer generally has 14 calendar days to close. If the buyer fails to close on time through no fault of Nilson Homes, the reviewed agreement calls for a $300 per-day charge until closing occurs.
That creates an uneven timeline.
The builder has flexibility when construction takes longer. The buyer faces a daily financial penalty when the buyer delays closing.
Do not schedule movers, terminate a lease, sell furniture, arrange temporary housing, or make major employment decisions based only on an estimated completion date.
Build flexibility into your plan.
Your Design Selections May Be Locked
The contract review says the buyer confirms that design and color selections have been reviewed and approved.
After signing, there may be no contractual right to change them.
Nilson Homes may also substitute products, materials, fixtures, or design elements with items it considers to be of equal or better quality. According to the review, Nilson Homes decides what qualifies as equal or better, and the buyer may not receive a price reduction or approval right.
Before signing, verify every selection:
Floor plan
Elevation
Exterior colors
Cabinets
Countertops
Flooring
Tile
Plumbing fixtures
Lighting
Appliances
Doors
Hardware
Basement finish
Garage features
Landscaping
Fencing
Lot premium
Structural options
Electrical upgrades
A model home is not your contract.
A rendering is not your contract.
A conversation with a salesperson is not your contract.
The signed plans, specifications, selections, addenda, and change orders control what the builder has agreed to provide.
If It Is Not in Writing, Don’t Count on It
The reviewed agreement says verbal promises do not modify the contract.
The separate construction disclosure makes the point plainly: if it is not in writing, it is not binding.
That includes promises about:
Closing costs
Lender incentives
Rate buydowns
Appliances
Landscaping
Fencing
Completion dates
Repairs
Upgrades
Lot features
Material choices
Design changes
Credits
Allowances
Section 29, described as Special Consideration or Agreements, should contain any negotiated promise that is not already written elsewhere.
A text message may help document a conversation, but it is not a substitute for a signed contract addendum.
Preferred Lender and Title Incentives Need to Be Compared Carefully
The buyer may choose a lender, but using a non-preferred lender can mean giving up advertised builder incentives.
The contract review also says the buyer may choose a Utah-licensed title company in many financed transactions. However, choosing a title company other than the builder’s preferred company may result in receiving a Standard owner’s title policy instead of an upgraded Homeowner’s Policy.
The preferred option may be a good deal.
It may also be a good deal for the builder.
Compare the full package:
Interest rate
Annual percentage rate
Origination fees
Discount points
Rate-buydown structure
Lender credits
Builder credits
Appraisal fee
Underwriting fee
Lock period
Extension costs
Cash required at closing
Owner’s title coverage
Title and escrow fees
Don’t compare only the advertised incentive.
A $15,000 credit can lose much of its value if the interest rate, fees, or loan terms are less competitive.
Many Closing Costs Are Assigned to the Buyer
The reviewed agreement assigns a long list of expenses to the buyer, including many financing, title, inspection, recording, escrow, HOA, insurance, and prorated costs.
Nilson Homes generally pays for the base owner’s title policy, certain utility and infrastructure connections included in the purchase price, and enrollment in the 2-10 warranty program.
Ask for a detailed closing-cost estimate before signing.
Your estimate should include:
Loan fees
Discount points
Prepaid interest
Property taxes
Homeowner’s insurance
Mortgage insurance
Appraisal
Inspection fees
Title endorsements
Lender’s title policy
Escrow fees
Recording fees
HOA setup or transfer fees
Required reserves
Upgrade payments
Rate-lock extension fees
The down payment is not the only cash you may need.
Job-Site Visits Carry Their Own Risk
The construction disclosure warns that the job site is dangerous.
The review says visits must be coordinated with Nilson Homes, the number of visits may be limited, and buyers may be asked not to bring children or guests.
The buyer also agrees to protect Nilson Homes against certain claims connected to job-site visits, and that obligation may survive closing or termination.
Follow the builder’s access rules.
At the same time, make sure the contract allows qualified inspectors to access the home at appropriate stages.
A useful inspection plan may include:
Pre-drywall inspection
Final new-construction inspection
Sewer scope when appropriate
Roof or drainage review when concerns exist
Radon testing
An 11-month warranty inspection
The builder’s orientation is not the same as an independent inspection.
The Most Important Issue: What Happens After You Close?
This is where the contract becomes especially serious.
Section 10 is described in the review as an “AS IS, WHERE IS” provision. Except for specific written warranties and the 2-10 warranty, Nilson Homes disclaims broad implied warranties, including warranties related to habitability, construction quality, merchantability, and fitness for a particular purpose.
Section 14 goes further.
As of closing, the buyer and future owners broadly waive and release defect claims against Nilson Homes and related parties under other legal theories, including negligence. Under the agreement reviewed, the 2-10 Home Buyers Warranty process becomes the buyer’s contractually designated exclusive remedy for covered construction defects. Disputes are directed to binding arbitration rather than a court or jury.
Any legal rights that cannot legally be waived may still exist. That is one reason a Utah real estate attorney should review the agreement.
From a practical standpoint, though, the buyer should assume that after closing, the warranty manual controls the path for pursuing covered defects.
The 2-10 Home Buyers Warranty Manual Is a Legal Document
https://sureut.com/2-10_Home_Buyers_Warranty_Manual
The 2-10 manual is not just a brochure that says you have a “10-year warranty.”
The attached manual states that the manual and the property’s Certificate of Warranty Coverage are legal documents defining the scope of the express limited warranties, the warranty terms, claim process, exclusions, and available remedies.
The manual also says the Certificate confirms that the home was enrolled in the program and identifies the buyer’s eligibility for the applicable coverage.
The attached manual is a 2019 edition. Buyers should confirm that this is the exact edition incorporated into their purchase and obtain the property-specific Certificate of Warranty Coverage.
Before closing, you should have:
The complete warranty manual
The Certificate of Warranty Coverage
The effective date
The workmanship warranty term
The distribution-systems warranty term
The structural warranty term
The warranty limit
All applicable addenda
The correct claim contact information
Do not accept a verbal summary of the warranty.
Read the documents that will control your rights.
The “10-Year Warranty” Does Not Cover Everything for Ten Years
The reviewed Nilson agreement refers to 10-year structural coverage.
That does not mean everything in the house is protected for ten years.
The 2-10 manual separates coverage into three categories.
Workmanship Warranty
Workmanship coverage addresses certain standards involving the fit, finish, and materials used in construction.
The manual lists examples such as:
Roof covering
Cabinets
Countertops
Door panels
Exterior siding
Hardwood floors
Basement floors
Ceramic tile
Drywall
Interior trim
Carpet
Paint
Fireplaces
Claims are judged using the manual’s Construction Performance Guidelines.
Distribution-Systems Warranty
Distribution-systems coverage addresses certain parts of the systems that deliver electrical, plumbing, and mechanical functions through the home.
The manual identifies:
Supply piping
Waste piping
Ductwork
Electrical wiring
The warranty does not necessarily cover every appliance or manufactured component connected to those systems.
Structural Warranty
The structural warranty applies to designated load-bearing elements, including:
Foundation and footing systems
Load-bearing walls and partitions
Beams
Columns
Roof-framing systems
Floor-framing systems
Girders
Lintels
Masonry arches
This coverage is much narrower than many buyers assume.
A Structural Defect Must Meet a High Standard
The manual describes structural coverage as protection against qualifying physical damage to designated load-bearing elements.
To qualify as a structural defect, the damage must affect the load-bearing function to the point that the home becomes unsafe, unsanitary, or otherwise unlivable.
That means a crack, slope, separation, nail pop, sticking door, or cosmetic issue is not automatically a covered structural defect.
The manual lists many items that are generally considered non-load-bearing, including:
Roof shingles and roof coverings
Drywall and plaster
Flooring
Exterior siding
Stucco
Brick or stone veneer
Plumbing systems
Electrical systems
Mechanical systems
Basement and garage slabs
A problem can be expensive, frustrating, and serious to a homeowner without meeting the warranty’s definition of a structural defect.
That is why the phrase “10-year structural warranty” needs to be understood carefully.
The Certificate Controls the Length of Each Coverage Period
The manual says each warranty term begins on the applicable effective date. The duration of the workmanship, distribution-systems, and structural warranties is listed on the Certificate of Warranty Coverage.
The effective date is generally the earlier of:
The date the buyer closes and takes ownership, or
The date someone first occupies the home, if that happens before closing.
Do not assume the coverage dates based on the day you receive the manual.
Check the certificate.
Missing a Warranty Deadline Can Eliminate Your Coverage
The manual includes strict reporting requirements.
For workmanship and distribution-system defects, the buyer generally begins by contacting the builder. If the builder does not remedy the reported issue, the buyer may need to notify the warranty administrator within the manual’s required timeframe.
The manual repeatedly warns that failing to report defects within the stated time limits can waive coverage.
Structural claims must be reported to the warranty administrator as soon as possible and no later than 30 days after the structural warranty term expires.
The manual also calls for a $250 investigation fee when a structural claim is submitted. The fee is refunded if the warranty insurer determines that the buyer has a covered structural defect.
Keep a warranty file containing:
Dated photographs
Videos
Inspection reports
Emails
Builder repair requests
Warranty submissions
Claim numbers
Builder responses
Contractor reports
Proof of delivery
A calendar of deadlines
Do not rely only on phone calls.
You Must Allow Access for Inspections and Repairs
The homeowner has obligations under the warranty.
The manual requires reasonable access to the home during normal business hours so the builder, warranty insurer, or their representatives can inspect, test, or repair the property.
Failing to provide access can cause the homeowner to waive the builder’s or insurer’s obligations regarding the defect.
The homeowner is also expected to:
Maintain the home
Minimize additional damage
Follow the required notice process
Avoid unauthorized repairs
Cooperate with inspections
Follow emergency-repair procedures
A covered condition can become a denied claim when the homeowner does not follow the process.
The Builder or Insurer Controls the Repair Decision
Even when a defect is covered, the homeowner does not necessarily choose the contractor, repair method, or form of payment.
Under the manual:
The builder may repair, replace, or pay the reasonable cost of a workmanship or distribution-system defect.
The structural warranty insurer may repair, replace, or pay for a structural defect.
The design, method, and manner of repair are generally within the discretion of the responsible builder or insurer.
A repair does not extend the original warranty term.
For structural repairs, the manual says the goal is to restore the home to approximately its condition before the structural defect. It does not promise a like-new result.
That is a major limitation.
The Warranty Contains Important Exclusions
The warranty does not pay for every loss connected to a defect.
The manual excludes or limits categories such as:
Diminished market value
Temporary shelter
Transportation
Food
Moving and storage
Inconvenience
Landscaping and irrigation
Personal property
Certain unauthorized repairs
Attorney fees
Investigation expenses
Conditions without measurable physical damage
Damage related to improper maintenance
Many weather-related events
Certain appliance and manufactured-item failures
The manual also places a total warranty limit on the combined financial responsibility arising from the warranty. That amount is identified on the Certificate of Warranty Coverage.
A defect may be covered while many of the expenses created by the defect are not.
Concrete and Settlement Issues Need Special Attention
The Nilson construction disclosures and the 2-10 manual need to be read together.
The contract review says the separate Nilson disclosures treat many concrete conditions, settling issues, spalling, cracking, heaving, groundwater problems, and drainage conditions as normal, excluded, or the homeowner’s responsibility.
The 2-10 manual, however, contains specific Construction Performance Guidelines and measurement thresholds for certain foundation and concrete conditions.
For example, the manual discusses when some foundation cracks, basement-floor cracks, garage-floor cracks, settlement, and uneven slabs may qualify as deficiencies.
That does not mean every concrete crack is covered.
It means the answer may depend on:
The location
Width
Vertical displacement
Water intrusion
Cause
Warranty period
Maintenance
The separate Nilson disclosures
Whether the condition meets the manual’s written standard
This interaction should be reviewed before closing. Do not let anyone reduce the answer to, “Concrete always cracks,” or, “The warranty covers all cracks.”
Neither statement is enough.
Warranty Disputes Go to Binding Arbitration
The 2-10 manual requires disputes involving the warranty, the home, the builder, the warranty administrator, or the warranty insurer to be resolved through binding arbitration rather than by a judge or jury.
The manual also contains a class-action waiver. Claims generally must be brought individually and cannot be combined without written agreement.
That means the buyer accepts more than warranty coverage.
The buyer also accepts:
The warranty’s definitions
Its exclusions
Its reporting procedures
Its repair process
Its financial limits
Its arbitration system
Its class-action waiver
A final and binding dispute process
The time to understand that system is before closing, not after a major problem appears.
Post-Closing Maintenance Can Affect Coverage
The separate Nilson construction disclosure places several responsibilities on the homeowner.
The contract review identifies issues including:
Maintaining final grading and drainage
Managing groundwater risks
Sealing concrete
Maintaining granite and tile
Avoiding unauthorized construction work
Using compatible HVAC controls
Protecting plumbing from improper items
Testing and addressing radon
Maintaining landscaping and swales
It also warns that certain unauthorized work may trigger penalties and void coverage for affected systems.
After closing, keep the construction disclosure, warranty manual, Certificate of Warranty Coverage, appliance warranties, inspection reports, and maintenance records together.
Home maintenance is no longer just about preserving the property.
It can affect whether your warranty claim is accepted.
Why a Strategist-Minded Realtor Matters
Buying new construction is not simply choosing a lot, floor plan, cabinets, and flooring.
It is a long financial commitment built around a builder-controlled agreement.
A strategist looks beyond the model home.
Before you sign, your agent should be asking:
How much money is at risk?
When does the deposit become nonrefundable?
What happens if the appraisal is low?
What happens if the buyer’s current home does not sell?
Can the buyer still qualify if rates increase?
Are the incentives actually competitive?
What promises need to be placed in writing?
What substitutions can the builder make?
What inspections are allowed?
What is unfinished at closing?
What does the warranty actually cover?
What rights are waived after closing?
What is the buyer’s exit strategy?
How will this home perform at resale?
A transaction-minded agent may focus on getting the contract signed.
A strategist focuses on what could happen before signing, during construction, at closing, and five years after you move in.
That is the representation you need.
Common Mistakes Nilson Homes Buyers Should Avoid
Going to the builder before speaking with an agent
Some builders require your agent to be identified or registered early. Walking in alone can complicate your ability to receive representation.
Assuming no agent means a better price
There is no automatic discount. You may simply lose your advocate.
Missing the two-day cancellation deadline
Two calendar days pass quickly, especially over a weekend.
Signing before financing is fully prepared
The loan-commitment deadline is too tight for casual preparation.
Assuming the appraisal protects you
Conventional buyers may have no low-appraisal cancellation right.
Relying on an estimated completion date
Builder dates can move. Your lease, sale, movers, and rate lock need flexibility.
Trusting verbal promises
If it is not written into the signed agreement, don’t depend on it.
Treating the builder orientation as an independent inspection
The builder is reviewing its own product. Hire an inspector working for you.
Assuming the 10-year warranty covers the entire home
The 10-year portion is structural and narrowly defined. Other coverage terms are separate.
Ignoring the warranty until something breaks
By then, a notice deadline may have expired.
Nilson Homes Buyer Checklist Before Signing
Before signing the agreement:
Hire your own Realtor before entering the sales process.
Obtain the complete purchase agreement and all addenda.
Have a Utah real estate attorney review the contract.
Review Sections 6, 10, 12, 14, 25, and 27 carefully.
Confirm the exact Offer Date and Effective Date.
Calendar the two-day cancellation deadline.
Confirm where the earnest money will be held.
Identify when every deposit becomes nonrefundable.
Verify the loan-application and commitment deadlines.
Determine whether the purchase depends on selling another home.
Confirm the appraisal protection for your loan type.
Compare the preferred lender against at least one alternative.
Compare the preferred title package against your other options.
Put every incentive and promise in writing.
Review every selection, plan, specification, and addendum.
Confirm the builder’s substitution rights.
Review the inspection and job-site-access rules.
Obtain the exact 2-10 warranty manual incorporated into the deal.
Obtain or confirm the Certificate of Warranty Coverage.
Review the warranty terms, exclusions, deadlines, and arbitration provision.
Confirm what remains unfinished at closing.
Keep a complete signed copy of every document.
Frequently Asked Questions About the Nilson Homes Contract
Is the Nilson Homes contract favorable to the buyer?
The reviewed agreement is heavily builder-favorable. It gives the buyer a short cancellation window, places the earnest money at risk, contains strict financing deadlines, limits appraisal protection, gives the builder broad timing flexibility, and restricts the buyer’s post-closing remedies.
How long does a buyer have to cancel?
The contract review says the buyer has two calendar days from the Offer Date to cancel for any reason and receive a full earnest-money refund. Confirm the exact deadline and notice procedure in your agreement.
Is the earnest money refundable?
It is refundable during the general cancellation period and in certain other circumstances written into the agreement. After Nilson Homes accepts the contract, the deposit becomes largely nonrefundable unless a specific contractual exception applies.
Does a conventional appraisal protect the buyer?
The reviewed agreement does not provide conventional buyers with the same low-appraisal protection provided in the FHA and VA provisions. A conventional buyer may have to bring additional money to closing when the appraisal is low.
Is the 2-10 Home Buyers Warranty the buyer’s only recourse after closing?
Under the Nilson agreement reviewed, the buyer broadly waives other construction-defect claims and agrees to use the 2-10 warranty process as the exclusive contractual remedy for covered defects after closing. Any rights that cannot legally be waived should be discussed with a Utah attorney.
Does the 2-10 warranty cover everything for ten years?
No. The warranty separates workmanship, distribution-systems, and structural coverage. The 10-year portion referenced in the Nilson review applies to qualifying structural defects. The Certificate of Warranty Coverage states the term for each category.
What qualifies as a structural defect?
The manual requires actual physical damage to a designated load-bearing element that affects its load-bearing function to the point that the home becomes unsafe, unsanitary, or otherwise unlivable.
Can a warranty claim be denied for missing a deadline?
Yes. The manual warns that the homeowner may waive coverage when a defect is not reported within the required timeframe.
Does going directly to Nilson Homes guarantee a better deal?
No. An unrepresented buyer is not automatically entitled to a lower price, additional incentive, or the amount that might otherwise be offered toward buyer-agent compensation. Going directly to the builder may simply leave the builder represented while you are not.
Protect Yourself Before You Sign
New construction can be a great choice.
But a beautiful model home does not erase the contract.
The Nilson Homes agreement controls your deposit, financing deadlines, appraisal risk, construction timeline, closing obligations, warranty rights, and dispute process.
After closing, the 2-10 Home Buyers Warranty manual and Certificate of Warranty Coverage may become the documents that control your only contractual path for resolving covered construction defects.
Read them before you close.
Document the home before you accept it.
Have independent inspections.
Put every promise in writing.
Most of all, bring in a Realtor with a strategist mindset before you begin working with the builder.
Going directly to the builder does not guarantee you a better deal. It may simply remove the person whose job is to watch the contract, anticipate the landmines, and protect your position.
Todd Porter, also known as Utah Todd, is a Davis County real estate strategist, investor-minded Realtor, and founder of SURE Group. He helps new-construction buyers across Davis County, the Wasatch Front, and Northern Utah understand builder contracts, protect their deposits, reduce risk, and make smarter long-term real estate decisions.
Todd Porter | SURE Group
Phone: 801-755-1882
Email: [email protected]
Website: SUREUtah.com
