How Dream Finders Homes Uses This Clause
Dream Finders Homes purchase agreements have been documented to include certificate of occupancy / change order escalation provisions. The contract may state that a certificate of occupancy does not constitute a warranty or guarantee of construction quality. This undermines a buyer's assumption that a government-approved home meets basic construction standards.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Dream Finders Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Dream Finders Homes'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.
Regional Contract Patterns
Dream Finders Homes operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in Dream Finders Homes'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 Dream Finders Homes's operating states.
| State | Status | Note |
|---|---|---|
| Florida | Likely Unenforceable | Florida law requires a certificate of occupancy before a building may be occupied. The Florida... |
| Texas | Uncertain | Texas does not have a statewide statute requiring a certificate of occupancy before residential... |
| Georgia | Uncertain | Georgia requires compliance with state minimum building codes under O.C.G.A. Section 8-2-25, and... |
| 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... |
| Virginia | Likely Unenforceable | Virginia has a mandatory statewide building code, the Virginia Uniform Statewide Building Code... |
| Colorado | Uncertain | Colorado does not impose a single statewide CO requirement for residential construction.... |
| Tennessee | Uncertain | Tennessee does not mandate a single statewide building code for all jurisdictions. Tenn. Code Ann.... |
Related Clauses in Dream Finders Homes Contracts
This clause often works in combination with other provisions in Dream Finders Homes's purchase agreements.
Certificate of occupancy issues may interact with closing deadlines and associated penalties.
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 Dream Finders Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.