Who has the rights to sell a home pre-construction?

Question

Hey there!

I am currently working with an investor who purchased a couple of lots for new construction. He is in the process of choosing a local builder to work with in Avon Park, Florida. Ideally, he would like to list the project on the MLS to find a homebuyer to pay for the project before its completion date.

But I am curious of the legality of this process, how can the investor (the land owner) promote and advertise a home which he has not paid for. I have seen homes listed on the MLS as new construction and state the projected completion date but I always thought those listings were when Realtors partnered up with the builders.

Who would need to give permission to list the home? Would there be something about this within the builders contract?

Account Closed · Answer

We do this all the time. As soon as permits are pulled and plans submitted, land owned, we list the house on mls with 3d renderings and floor plans.

My avg time from listing until pending is 12 days with 3-4 months construction time and close a week or two after our own internal inspections are passed and complete.

Caroline Gerardo · Answer

If he buys the lot and closes then gets a construction loan he could show plans and specs and digital idea to sell.

If he is just in contract to buy with builder, he cannot sell, he owns nothing. He would need a new contract saying he can assign the lot or agreement.

Macarena Lopez · Answer

@Caroline Gerardo @Dustin Allen Account Closed Thank you! You all have been very helpful. Hopefully, this is the start of a very successful project!

Dustin Allen · Answer

@Macarena Lopez

Those listings you see are often builders doing spec builds specifically to sell.  They generally list ahead of time and sometimes even offer the buyer the opportunity to pick some finishes if they commit early enough in the project.  Call the realtor that you see listing those houses and they can probably be very helpful if you list it with them.

Who has the rights to sell a home pre-construction?

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