How PulteGroup Uses This Clause
PulteGroup purchase agreements have been documented to include certificate of occupancy / change order escalation provisions. Once a change order for design selections has been approved, the lender must approve the new total purchase price. Change order pricing is set at the builder's discretion, and modifications after certain construction milestones may be refused or subject to additional fees.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because PulteGroup operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
PulteGroup'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.
Standardized Across Markets
PulteGroup's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Standard Form Contract
This clause appears in PulteGroup'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 PulteGroup'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... |
| California | Likely Unenforceable | California law requires local building officials to issue a certificate of occupancy before a... |
| Arizona | Uncertain | Arizona does not have a single statewide statute mandating certificates of occupancy for 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... |
| Colorado | Uncertain | Colorado does not impose a single statewide CO requirement for residential construction.... |
| Nevada | Uncertain | Nevada does not have a single statewide statute requiring a certificate of occupancy for residential... |
| Virginia | Likely Unenforceable | Virginia has a mandatory statewide building code, the Virginia Uniform Statewide Building Code... |
| Maryland | Likely Unenforceable | Maryland requires a certificate of occupancy under the Maryland Building Performance Standards (Md.... |
| Tennessee | Uncertain | Tennessee does not mandate a single statewide building code for all jurisdictions. Tenn. Code Ann.... |
| Indiana | Uncertain | Indiana has a statewide building code administered by the Indiana Fire Prevention and Building... |
| Ohio | Likely Unenforceable | Ohio has a statewide building code, the Ohio Building Code (OBC), administered by the Ohio Board of... |
| Pennsylvania | Likely Unenforceable | Pennsylvania has a mandatory statewide building code, the Pennsylvania Uniform Construction Code... |
| New Jersey | Likely Unenforceable | New Jersey has a mandatory statewide building code, the New Jersey Uniform Construction Code (UCC),... |
| Minnesota | Likely Unenforceable | Minnesota has a mandatory statewide building code, the Minnesota State Building Code, administered... |
| Illinois | Uncertain | Illinois does not have a mandatory statewide residential building code that applies to all... |
| Michigan | Likely Unenforceable | Michigan has a mandatory statewide building code, the Michigan Building Code, established under the... |
| Washington | Likely Unenforceable | Washington has a mandatory statewide building code under the Washington State Building Code Act (RCW... |
| Utah | Likely Unenforceable | Utah has a mandatory statewide building code under the Utah Construction Trades Licensing Act and... |
| Alabama | Uncertain | Alabama does not have a mandatory statewide residential building code that applies to all... |
| Connecticut | Likely Unenforceable | Connecticut has a mandatory statewide building code, the Connecticut State Building Code,... |
Related Clauses in PulteGroup Contracts
This clause often works in combination with other provisions in PulteGroup'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 PulteGroup contracts that collectively limit buyer remedies. A contract scan can identify all of them.