New home licensees must refund deposits and pay interest when deals fall through

Plain-language summary · AI-assisted · not legal advice

A new section added to the Code of Ethics requires licensed new home builders and vendors to refund all money paid by purchasers or landowners — including deposits — whenever a refund is owed under an agreement or by law. Licensees must also pay interest on those refunds in the circumstances, timelines, and amounts required by the relevant agreement or law. The refund obligation applies across purchase agreements (including prescribed addenda), construction contracts, and any other agreement between a vendor and purchaser or a builder and landowner. Builders and vendors, and their licensing contacts, should review their standard agreements and refund processes to ensure they align with these obligations before the provision takes effect.

Who this affects: licensed new home builders · licensed new home vendors · purchasers of new homes · landowners contracting for home construction