How Ashton Woods Uses This Clause
Ashton Woods purchase agreements have been documented to include certificate of occupancy / change order escalation provisions. Ashton Woods' warranty and arbitration terms bind not only the original buyer but also successive owners of the home. Each subsequent purchaser is bound by all terms and conditions, including the mandatory arbitration provision, without having had any opportunity to negotiate those terms. Source: WFTV Action 9 investigation.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Ashton Woods's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Closing Penalty
Certificate of occupancy issues may interact with closing deadlines and associated penalties.
Standard Form Contract
This clause appears in Ashton Woods's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Ashton Woods's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Uncertain | Texas does not have a statewide statute requiring a certificate of occupancy before residential... |
| Florida | Likely Unenforceable | Florida law requires a certificate of occupancy before a building may be occupied. The Florida... |
| Georgia | Uncertain | Georgia requires compliance with state minimum building codes under O.C.G.A. Section 8-2-25, and... |
| Arizona | Uncertain | Arizona does not have a single statewide statute mandating certificates of occupancy for residential... |
| North Carolina | Likely Unenforceable | North Carolina requires a certificate of occupancy before a building may be occupied under the North... |
| South Carolina | Uncertain | South Carolina requires compliance with the International Building Code and International... |
Related Clauses in Ashton Woods Contracts
This clause often works in combination with other provisions in Ashton Woods's purchase agreements.
Certificate of occupancy issues may interact with closing deadlines and associated penalties.
Items that emerge between CO issuance and closing may fall outside punch list scope.
What Buyers Can Do
- Understand what the certificate of occupancy covers. A CO means the home meets minimum code requirements for occupancy. It does not mean the home is defect-free or that all contracted work is complete.
- Review change order terms. Understand how changes to the original specifications are handled, including pricing, approval, and timeline impacts.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Ashton Woods contracts that collectively limit buyer remedies. A contract scan can identify all of them.