Purchase Details / Our Process
What is the reservation process?
We collect a refundable $1,000 check made out to the title company in order for a buyer to reserve one of our units for 3 business days. The reservation period is designed to get financing in order, get outstanding questions answered, and to review our contract templates prior to moving forward. At the end of the 3 business days, the $1,000 becomes non-refundable and we schedule a time to sign contracts where the remaining 3% build deposit is due.
Is redT Homes the builder?
redT Homes is NOT the builder NOR are we the developer. redT Homes is the listing brokerage firm hired by the seller/developer to sell the units. Our role is the equivalent of your Buyer’s agent in that we are hired specifically to facilitate the contract, sale, and transfer of ownership.
The developer hires another company to be the general contractor to build the development. As the listing broker hired by the Seller, any questions you may have about the development or construction process will be submitted by your agent to redT and we will in turn communicate the questions to the appropriate party. We will then pass along responses to your questions, as well as information and updates we receive from the Developer and General Contractor to you and your agent. Like your Buyer’s agent, redT is a real estate broker and thus the messenger only. redT has no control over or responsibility for the construction or development process.
What is the time frame for construction and delivery?
Construction timelines vary across each project, but can be a moving target. Each contract will outline an estimated completion time frame for the specific unit being purchased. This is strictly an estimate and is NOT a closing date. redT will communicate throughout the process any delays or changes to the timeline outlined in the contract.
How much is the build deposit?
The build deposit collected is 3% of the purchase price.
When can we schedule closing?
redT will reach out to the buyer to schedule closing once we receive or anticipate the issuance of a Certificate of Occupancy OR a Temporary Certificate of Occupancy from the city. The city issues these certificates after the residence has passed all final inspections and the city determines that the residence is suitable for habitation. There are many reasons a Temporary Certificate may be issued, usually related to one unit in a project being complete and habitable ahead of site-wide permits being closed out (e.g. landscaping installation may be outstanding). Our contract stipulates that a Temporary Certificate of Occupancy is sufficient for closing to occur.
Who pays the Owner’s Title policy?
The seller pays the Owner’s Title Policy
Are there any Lender Incentives?
Please see below for a few of our lending partners that redT has worked closely with in the past and who know our process in depth. Feel free to reach out to each lender to explore their individual incentives.
New American Funding
Office: (800) 450-2010 Ext. 4651
Direct: (303) 524-2307
Fax: (303) 484-5176
Peyton E. Fullerton
Fairway Independent Mortgage
Producing Branch Manager
What is the builder warranty?
The builder provides a 1-year builder warranty. redT can provide a copy of this warranty at your request. The warranty is also provided in the contract documents.
Inspection of the Residence
What if I find an issue before closing?
As you are purchasing a newly constructed unit that will be built and approved by city inspectors as being constructed per approved architectural and structural plans, there is no formal inspection objection contingency. That said, every buyer is contractually entitled to a punch walk prior to closing once the residence is complete. The punch walk is designed so that each buyer has the opportunity to document any cosmetic flaws with blue tape thus forming a “punch list” that is submitted to the builder to be addressed. Buyers are also welcome to schedule an independent inspection once redT and the builder confirm a day/time and any items found by the inspector are also submitted to the builder along with the punch list for consideration, but there is no contract renegotiation as a result of any inspection items. If any items found are disputed, the builder will defer to the NAHB (National Association of Home Builders) guidelines to determine what does or does not qualify as an item to be addressed.
What if I find an issue after closing?
The builder warranty does NOT cover cosmetic items or items caused by homeowner wear and tear (i.e. floor scratches, paint blemishes, etc.). The punch walk is the only opportunity to document or ask for cosmetic items to be addressed per the contract and warranty. Issues that do qualify as warranty items under the builder warranty that are found after closing are required to be submitted via the specific builder warranty claim instructions. As the listing broker, redT Homes does NOT administer these warranties and Buyers must follow the claims procedures and work directly with the Warrantor for repair of eligible items. Each buyer is provided with a Homeowner Manual that contains a copy of the Warranty (also provided as part of Contract Disclosures) that includes warranty claim procedures. The Builder Warranty specifically excludes residential appliances and Buyers are responsible for registering appliances and making warranty claims directly through the manufacturer of appliances.
Party Wall/HOA/After Closing
What is a Party Wall agreement?
A partywall agreement is a legal document that is recorded and provides a legal framework for the rights, restrictions, responsibilities, and procedures for owners of a townhome community to self-govern. A partywall agreement does NOT create a Homeowners Association and thus there is no HOA board. While there is no HOA, the provisions of the Partywall Agreement are legally binding upon all future owners. In order to ensure the mutual enjoyment, safety, and visual appearance of the community, most partywall agreements will require that a 3rd party manage certain services such as snow removal, landscaping, division of shared utility bills, and private trash services. The partywall agreement requires all owners to share in the cost of hiring a property manager, which is typically billed to each owner monthly. The individual requirements and projected costs vary and you should consult with a redT Broker to understand what the requirements and obligation for the community you are interested will be.
Who is handling the Property Management?
The developer has selected redT’s Property Management Division as the property manager for your community. redT’s Property Manager works with the Developer to ensure a seamless transition of the maintenance, billing, and provision of services to your community.
How much are the party wall dues, and what is included for that amount?
Due to differing site conditions and differing unit counts, no two development projects have the same management fees. On the high side, some developments may see an average monthly fee of $120. Other developments may see fees that average $100 per month. For all projects, these fees will vary from month to month as the fees reflect actually incurred costs of landscaping, snow removal, water bills, etc.
If the projected average monthly fee for your community is $120, then your 12 bills throughout the year are expected to average $120; Some months’ bills will be higher than $120, some will be lower than $120. A snowy February that requires multiple days of snow removal could mean a bill of $160 (example cost only), whereas a November without snow where the irrigation system has been turned off would result in a lower water bill that could mean a monthly fee of $80 (example cost only). There is no advance guarantee of specific costs as the management company bills based on actual expenses incurred during the previous month.
Typically, the required fees for management services include division of water billing, snow removal, trash and recycling services, landscaping, and the property management fee. The budget is dependent upon each individual development and buyers should consult with one of redT’s brokers to get specifics for their residence.
Does the partywall agreement include a master insurance policy?
The partywall agreement does not have a master insurance policy and therefore each homeowner is responsible for the exterior maintenance and roof of their residences.
How do I get more acquainted with the Party Wall agreement?
The Partywall Agreement contains references to information that may change throughout the construction process so Developers typically wait until they can confirm this information before recording a final copy. redT does have a template of the partywall available for review at any time per your request.
Is a reserve collected at closing?
Per the requirements of the partywall agreement, there is a 3 month reserve collected by the management company at closing that will be reflected on your settlement statement. This reserve is based on the management company’s projection of estimated costs.
About Your Home
Am I able to choose my interior finishes?
redT’s design coordinator pre-selects a default finish package for each residence in the event that a buyer does not purchase the residence prior to the finish deadline due to the construction cutoff date. redT will provide any potential buyers with the time frame in which they have to select their finish package should the construction timeline allow for such.
Can I mix and match finish options?
Buyers are not allowed to mix and match finish options. In the event you still have time to select your finish options, you will have pre-selected finish packages to choose from that have been professionally designed by our design coordinator.
What all comes with my home?
All of the appliances and standard finishes are included in the purchase price of your home with the exception of the washer and dryer and window coverings.
Can I do short term rentals/Air BnB?
For developments that operate under a partywall agreement, the partywall agreement recorded by the developer does not contain STR or AirBnB restrictions except that such uses must be properly licensed by the City and County of Denver. However, all homeowners should consult with their agent or legal representation to determine if their situation allows for a STR or AirBnB under the City and County of Denver guidelines. As of November, 2018, those guidelines DO require that a property must be an owner’s primary residence. Residences may not be used and operated solely for the purpose of short term rentals.
What is between the walls?
Denver’s building and fire codes (adopted from International standards) require that townhomes that share a common “partywall” be separated by many layers of building materials. In most of the modern non-fire sprinkled townhome units in Denver there will typically be drywall facing into your unit that is backed by wood framing, batt insulation, an air gap and then a solid shaft wall. That is one half of the wall system that is mirrored on the neighboring unit. The many layers of this system, as well as the air gaps separating the two sides of the “partywall” do an excellent job of preventing noise transmission between units.
Does redT provide parking permits?
Buyers should consult with their agent or with the City and County of Denver directly to determine future eligibility for street parking permits. Not all units/development projects are entitled to street parking permits and the Seller and redT Homes do not guarantee eligibility.
What is the pet policy?
The partywall agreement defers to the City and County of Denver’s regulations regarding the possession of pets. There are no additional restrictions above and beyond the City and County regulations.