How Shea Homes Uses This Clause
Shea Homes purchase agreements have been documented to include certificate of occupancy / change order escalation provisions. Changes to selections or design after contract execution may be subject to significant change order fees and markups. The purchase agreement may grant the builder sole discretion over whether to permit changes and at what cost. Buyers should confirm change order pricing before signing the purchase agreement.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
As a builder operating in the upper price segments, Shea Homes buyers may have somewhat more leverage to negotiate contract terms compared to entry-level buyers. However, the presence of this clause in standard purchase agreements means buyers should review it carefully regardless of price point.
Builder-Specific Details
Combined with Closing Penalty
Certificate of occupancy issues may interact with closing deadlines and associated penalties.
Negotiation Potential
Shea Homes operates in higher price segments where buyers may have more leverage to negotiate individual contract terms. While the clause appears in standard templates, buyers of custom or semi-custom homes may have more room to request modifications.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Shea Homes's operating states.
| State | Status | Note |
|---|---|---|
| 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... |
| Colorado | Uncertain | Colorado does not impose a single statewide CO requirement for residential construction.... |
| Washington | Likely Unenforceable | Washington has a mandatory statewide building code under the Washington State Building Code Act (RCW... |
| North Carolina | Likely Unenforceable | North Carolina requires a certificate of occupancy before a building may be occupied under the North... |
| Florida | Likely Unenforceable | Florida law requires a certificate of occupancy before a building may be occupied. The Florida... |
Related Clauses in Shea Homes Contracts
This clause often works in combination with other provisions in Shea Homes'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 Shea Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.