“It's Standard Builder Paperwork”

🟦 Real Agent Scenario

“But the SCR 310 Says I Can Get My Money Back…”

📘 Scenario

A buyer goes under contract on a new construction home. The buyer’s agent uses the SCR 310 and explains Due Diligence, termination rights, and earnest money as they would in a typical resale transaction.

After contract execution, the buyer is presented with multiple builder contracts and addenda. The agent treats these documents as standard builder paperwork and does not walk through them in detail.

Several weeks later, the buyer experiences a job change and wants to terminate. The buyer expects to terminate under Due Diligence and receive their earnest money back.

The builder responds that the deposit is non-refundable per the builder addendum. The buyer is shocked. The agent says, “That’s not how the SCR 310 works.”

The builder says otherwise.

⚖️ Broker Guidance

Builder contracts and builder addenda frequently override portions of the SCR 310, particularly regarding:

Earnest money and deposit refundability

Buyer termination rights

Seller default and remedies

Construction timelines and delays

When buyers sign builder-specific addenda, those documents often control over conflicting SCR 310 language. Many builder contracts clearly state that deposits are non-refundable except under very narrow circumstances.

Agents must never assume SCR 310 protections apply fully in new construction transactions. Builder documents are written to protect the builder first, and buyer rights may be significantly reduced once signed.

Failing to explain this distinction exposes the agent and brokerage to disputes, complaints, and potential E&O claims.

🧠 Questions Buyer Agents Should Ask the Builder Before Anything Is Signed

Deposit & Termination:

Is the deposit fully or partially non-refundable, and under what conditions?

What events, if any, allow the buyer to terminate and receive the deposit back?

Does Due Diligence still apply, or is it modified or eliminated by builder addenda?

Are any buyer termination rights limited or waived?

Financing & Appraisal

What happens if the buyer’s financing is denied?

Is there an appraisal contingency, and can the buyer terminate if the home does not appraise?

Are incentives tied to using a preferred lender?

Construction & Delays

Can the builder unilaterally extend construction timelines?

What remedies does the buyer have if delays occur?

Can the builder terminate the contract, and what happens to the deposit if they do?

Walkthroughs & Completion

Are buyers allowed to escrow funds for unfinished items?

What items may be completed after closing?

Does closing constitute acceptance of the home?

Dispute Resolution

Is the buyer required to submit disputes to binding arbitration?

📝 Action Steps

What the agent should have done:

Explained that builder addenda may override SCR 310 protections

Highlighted non-refundable deposit language before signatures

Asked builder-specific questions prior to contract execution

Encouraged the buyer to review addenda carefully and consult legal counsel

What the agent should not have done:

Described builder paperwork as “standard” or “routine”

Assumed Due Diligence works the same as resale

Promised refundability of deposits

💡 Broker Tip

Builder contracts are not resale contracts.
If a builder addendum conflicts with the SCR 310, the builder contracts/addendum usually controls. Slow down, ask questions, and never assume buyer protections apply automatically.

706 North Cedar St
Summerville, SC 29483, US