Under which circumstance must the REPC for Residential Construction be utilized?

Under which circumstance must the REPC for Residential Construction be utilized?

• A. If the property has never been lived in
• B. When a Certificate of Occupancy has not been issued
• C. When constructed by a licensed contractor
• D. When the property is a "spec" home not in a subdivision

Answer: (B)

The correct answer centers on the situation where a Certificate of Occupancy has not been issued. The Real Estate Purchase Contract (REPC) for Residential Construction is specifically designed to address the unique needs and considerations that arise in transactions involving newly constructed homes. When a Certificate of Occupancy has not been issued, it highlights the fact that the property is not yet deemed suitable for occupancy according to local building codes. This situation makes the REPC particularly relevant, as it includes provisions that protect both the buyer and the seller in cases where the construction is incomplete or where there may still be pending inspections and necessary approvals. This protects the parties by outlining responsibilities concerning the completion of construction, timelines for finishing work, and protocol in case issues arise—elements that are not standard in traditional real estate transactions where the property is already occupied and has a Certificate of Occupancy. In contrast, while a property that has never been lived in or a "spec" home may seem relevant, they do not strictly trigger the necessity for the REPC unless paired with the fact that a Certificate of Occupancy has not been issued. Similarly, the involvement of a licensed contractor is important but does not independently necessitate the use of the REPC. The focus on occupancy status aligns

The correct answer centers on the situation where a Certificate of Occupancy has not been issued. The Real Estate Purchase Contract (REPC) for Residential Construction is specifically designed to address the unique needs and considerations that arise in transactions involving newly constructed homes.

When a Certificate of Occupancy has not been issued, it highlights the fact that the property is not yet deemed suitable for occupancy according to local building codes. This situation makes the REPC particularly relevant, as it includes provisions that protect both the buyer and the seller in cases where the construction is incomplete or where there may still be pending inspections and necessary approvals.

This protects the parties by outlining responsibilities concerning the completion of construction, timelines for finishing work, and protocol in case issues arise—elements that are not standard in traditional real estate transactions where the property is already occupied and has a Certificate of Occupancy.

In contrast, while a property that has never been lived in or a "spec" home may seem relevant, they do not strictly trigger the necessity for the REPC unless paired with the fact that a Certificate of Occupancy has not been issued. Similarly, the involvement of a licensed contractor is important but does not independently necessitate the use of the REPC. The focus on occupancy status aligns