Obligation to Commence Construction

Construction must commence no later than 12 months after executing the purchase and sales agreement.

Construction Delays

Centron has the right extend the commencement date for all causes beyond the reasonable control of the builder except for lack of financing.

Compliance with Development Requirements

The builder is bound by architectural guidelines, grading and drainage requirements, municipal requirements and any competent authority and other obligations as per the agreement of purchase and sale with Centron.

Restrictions on Resale of lot by Builder

The builder can’t resell the lot other than with a single family home on it except to another builder at the cost of acquisition and reasonable costs of improvements and reasonable carrying costs.  The new builder will be bound by all the terms.

Limitation on Sales Price

The sales price for the completed home cannot be greater than actual costs plus a 20% markup on all reasonable costs for soft costs and improvements except there can be no additional markup on the lot over its original cost.

Availability for Sale

Except for any show homes, the single family home must be made available for sale upon or prior to completion.

Records and Audit

The builder must keep accurate and complete books and records.  Centron and Alberta Social Housing shall have the right to audit the books of the builder for a period of 3 years after sale of the single family home.

Option to Repurchase by Centron in the Event of Default.

If a builder or a subsequent purchaser defaults or breaches its or his or her agreement and does not remedy that breach, then Centron shall have the option to repurchase on terms and pricing as detailed in the full terms and conditions of the agreement with the Builder.

New Home Warranty

Builders must offer an Alberta New Home Warranty or a substantially equivalent warranty program.

Agreements with Purchasers

All agreements between builders and purchasers must have the notice of Centron’s option to repurchase and terms of enurement and non-merger.