Oral Representations Often Lead to Disagreements
Now that Daylight Saving Time has arrived and spring is two weeks away, many customers are ready to start building their home. Other customers are getting ready to select their modular builder. With interest rates predicted to rise by June and housing starts to increase to their highest level in several years, getting started soon is a wise move. Here is some advice about ensuring that your modular home contract includes what you expect.
Experienced modular builders have lots of stories to tell about the types of problems that cause disagreements with their homebuyers. One type of problem involves misunderstandings about items that were never discussed or documented because one party just assumed what the other party intended. Another type of problem involves misunderstandings about things that were discussed but not included in the builder’s contract. It might surprise you that more frustration, anger, and stress are generated by issues that were actually discussed – but not documented in writing – than by those that were not discussed.
These situations typically involve complaints by the homebuyers such as, “I told you I wanted raised panel maple kitchen cabinets and not picture frame maple cabinets.” The builder might come back with, “Don’t you remember, we did talk about your preference for raised panel maple cabinets, but the additional cost put you over your budget.” The problem is that the modular builder and homebuyers had talked about this on two occasions, going back and forth about which would be included, but the final contract just said “maple kitchen cabinets” and now both parties remember the discussion differently.
The Cost of Relying on Oral Representations
The cost difference between the picture frame and raised panel maple cabinets would be substantial enough on its own. But usually this misunderstanding doesn’t get discovered until the cabinets are already purchased and at least partially installed. It will cost either the homebuyer or builder (or both) a bit of money to make the change. The alternative is no better. If the homebuyers accept the picture frame cabinets, they will likely be unhappy with their modular builder and forever disappointed in their kitchen. The relationship between the two parties will now be fractured by distrust, which will make it more likely that small disagreements will become antagonistic.
Agree to Make Oral Representations Null and Void
The last thing you want to do is to rely on your modular builder’s or your own memory of what you’re getting. That’s why it is better for modular builders to include a clause in their contract that states that “It is mutually agreed that any oral representation made by either party prior to the signing of this agreement is null and void.” This clause serves to limit and place boundaries around the scope of either party’s representations and warranties. Even if an item is discussed and agreed to verbally, it has no legal validity unless it’s documented in the contract.
Replace Oral Representations with Detailed Written Representations
My suggestion is that you share responsibility with your modular builder for documenting all the details by taking notes during your meetings. You should be concerned if your builder is not also taking notes. If you then compare your notes with the builder’s contract, you are more likely to avoid contentious and costly disagreements.
Six Clauses in Your Modular Home Contract
Here are six clauses you may see in your modular home contract. Their purpose is to document standard construction industry practices that you, as the Homeowner, might not know. When put in writing, they help eliminate potential areas of disagreement between you and your modular builder.
Modular Home Contract: Changes, Deviations, or Omissions
This clause states that you agree to accept the minor deviations that sometimes incur in construction as long as the work is substantially the same as described in the contract and within accepted industry tolerance. Many builders don’t include this clause because the types of changes covered are usually so minor that you are unlikely to notice them. The reason this clause is sometimes included is that a few homebuyers have been known to get very upset when there is a change of ¼” in the size of a bedroom.
The builder may also include a similar clause that refers specifically to materials and products. Building code requirements, product availability, and design improvements may compel the builder to substitute material similar in pattern, design and quality to that listed in the plans and specifications. When possible, the builder should consult the customer when this occurs.
Modular Home Contract: Access to Your Property
As the Homeowner, you will at all times have access to your property and the right to inspect the work. However, if you enter the property or invite others to enter the property during the course of construction, you all do so at your own risk.
Although your access to the property is ensured, this clause points out that you cannot interfere with the work or the modular builder, his employees, or trade contractors. In addition, you will need to communicate directly with the supervisor assigned to your project rather than other employees or contractors on the site.
Modular Home Contract: Work Performed by the Homeowners and Their Trade Contractors
This clause speaks to your responsibilities when you perform some of the work or directly hire contractors other than your builder to complete some of the work. In that case, you are responsible for ensuring that you and your contractors have liability and workers compensation insurance. You will also be responsible for coordinating this work to avoid disrupting or interfering with the work being done by the builder’s team. Needless to say, you are responsible for the quality of this work as well as whether it complies with the building code. In addition, you will need to take care of any warranty work.
Modular Home Contract: Unused Materials
Builders often have unused materials after they complete their work. Sometimes this is intended, since it’s easier to return the excess than to leave the job in the middle of the work to fetch what’s missing. Keep in mind that you have only paid for the materials your builder has used. This clause states that the builder owns these unused materials. However, most builders will leave you some extra siding, shingles, paint, as well as some other materials, if they have them.
Modular Home Contract: Signage and Marketing
Most modular builders will want permission to display a sign on your site until their work is completed. They will also want permission to invite their prospective customers to walk through your home while it is under construction. This clause will allow the builder to do these things, but it should also state that prospective customers visit at their own risk.
Modular Home Contract: Building Code Compliance
Your modular dealer is responsible for ordering the home so that it complies with the state building code current at the time your agreement is written. Modular manufacturers are required to build their homes in compliance with the code in effect at the time they build your home. This clause states that when changes happen to the state code, you are responsible for the additional material, labor, services, and other expenses required to comply with the changes. It also states that you are responsible for the costs associated with complying with local building codes when these codes exceed the state code.
My Introduction to Radiant Floor Heat
Twenty years ago I visited another modular builder’s residence on a cold February day. It was a nicely appointed cape cod with a front-to-back family room on one side and a complimentary garage flanking the other side. When I entered the family room I was immediately struck by how comfortable I felt. At first I thought it was the number and style of windows that looked out onto a peaceful snow covered patio. Then I thought it was the decor, which was richly traditional. The builder’s wife, who was giving me a tour, smiled and said, “You look confused, and I bet I know why. Your feet are warm.” I undoubtedly looked even more confused until she explained that the tile floor had radiant floor heat.
Forced Air Heat vs. Radiant Floor Heat
Have you wondered why you sometimes (maybe always) feel cold even though the thermostat for your forced hot air heating system is set to 72 degrees? It’s not you! It’s because the warm air rises to the ceiling and falls back down as cool air. Your toes become cold why your head stays warm. This effect is amplified by the on and off cycling of the system, which warms you quickly but then chills your bones when the air stops pumping through the ducts.
With radiant floor heat, on the other hand, the heated floor transmits its warmth to the surrounding objects. You remain comfortably warm because the coldest air is at the ceiling rather than your feet, and the floor and everything it touches remains at a constant temperature. By warming you from your feet up, radiant floor heat keeps you feeling toasty at a lower temperature.
Radiant floor heating systems can heat an entire home or individual rooms. Bathrooms, kitchens, and mudrooms are popular candidates for this enhanced comfort. When installed in selected rooms, the temperature is controlled with individual thermostats. The remaining rooms are heated with a conventional system.
Two Types of Radiant Floor Heat
There are two basic types of radiant floor heat: hydronic and electric resistance. Hydronic systems pump heated fluid through small tubes under the finished flooring. The fluid is usually a mix of water and anti-freeze, such as propylene glycol The heat source is a boiler, water heater, or heat pump, with the heat transferred by the recirculation of the fluid between the floor and the heat source.
Electric resistance systems work with electric wires set underneath the floor. They function much like the wires in an electric blanket. Because they use fewer components and are easier to install, they are less expensive to set up than hydronic systems for single rooms. However, they are more costly to operate.
Installation of Radiant Floor Heat
Both types of radiant floor heating systems can be set in a concrete, mortar, or gypsum bed, placed under the floor covering, or attached directly to a wood sub floor. The tubing for radiant floor heat can be installed in specially made plywood with precut channels, which enables you to install carpeting and wood flooring directly over the plywood. Ceramic tile floors should be cast in a mortar bed or on a cement backer board, while vinyl flooring needs to be placed on an underlayment.
Finished Flooring over Radiant Floor Heat
You can use most any type of finished flooring over either type of radiant floor heating system, although some materials work better than others. Tile, stone, and concrete transfer and hold heat best. Solid wood floors will shrink and expand because of the heat, but the new “engineered wood” floors hold up better. If you install vinyl or laminated flooring, make sure they can withstand the heat. Keep in mind that carpets will reduce the heat flow, as they will act as insulation.
Advantages of Radiant Floor Heat
Radiant floor heat has a few notable advantages over conventional systems in addition to superior comfort. Many people like the fact that they’re hidden and silent. If you’ve ever lived with banging radiators or whistling registers, you’ll appreciate radiant floor heat. Anyone with allergies will value them because there is no dust- or allergen-blowing ductwork. And for those who want to increase the energy efficiency of their home, radiant floor heating systems are an efficient way to heat, increasing comfort as they reduce energy costs.
For more information about installing radiant floor heat, see Modular Home Specifications and Features and The General Contractor’s Responsibilities for Building a Modular Home in my book The Modular Home.
The Advantages of One-Story vs Two-Story Homes
There are a variety of ways to compare the advantages of a one-story vs two-story modular home. In part your choice will depend on your personal taste as well as your local real estate market. But you will likely also consider the distinct advantages of each. Here’s a list of the advantages most often mentioned by my customers.
- More living space
- You don’t need to use square footage for a staircase to the second floor, although you will need one to the basement
- You might need fewer bathrooms
- More attic space for storage
- More basement space for storage
- More convenience
- You don’t need to run up and down stairs to cook, clean, keep an eye on your children, do the laundry, or get a snack
- Safer for younger children and easier for older/mobility challenged individuals
- You can “age in place” more easily and affordably
- Easier to evacuate in case of a fire
- Less noise transmission, since sound does not travel through the walls of multiple rooms on the same floor as well as it travels between floors
- TV or stereo on either floor
- Foot traffic on the second floor
- Stair traffic
- Easier – and cheaper – to heat and cool.
- More consistent temperature zones, since all rooms flow into each other
- Trees can provide more shade
- Second story rooms easier to heat, since heat rises
- Greater separation of public and private spaces
- More privacy for second story bedrooms, which is especially valued by parents and older children
- Bigger yard
- Can build a bigger home on a smaller lot
- Easier to deliver modules down narrow streets and onto a small, tight lot, since each module can be half the length to create the same square footage as needed for a one-story
- Safer to open second story windows at night
- Smaller roof to maintain
- More expansive views from second-story
- Good exercise using the stairs everyday
- Better for the environment, since less land is disturbed during construction
For more information about the benefits of building a one-story vs two-story home, see Designing a Modular Home, Modular Home Specifications and Features, and Finding and Preparing a Building Lot for a Modular Home in my book The Modular Home.
There are many things to learn the first time you build a modular home. But if you’re like most homebuyers, you won’t get the full benefit of what you learn, since you’ll likely only build one home.
But you can benefit from what I’ve learned over twenty-eight years building more than 1,200 homes. To start with you can read my book, The Modular Home, which gathers all this information in one place.
Take Advantage of My Experience by Using My Modular Home Checklists
Of course, it’s hard to use a book efficiently the first time you use the information. That’s why I’ve created several checklists that cover the most important steps. Below is a link to each of the checklists. There’s also a link to this list on the home page of The Home Store’s website. I hope you find these modular home checklists helpful.
- Ensure You Are Ready Willing and Able to Build a Modular Home
- Selecting a Modular Home Dealer
- Your Modular Home Dealer Customer References
- Selecting a Modular Home General Contractor
- Your Modular Home General Contractor References
- What to Include in Your Modular Home Legalese
- Selecting the Right Modular Home Plan
- What You Should Ask Modular Home General Contractors
- Reviewing Your Modular Home Floor Plans
- Reviewing Your Modular Home Elevation Plans
- Modular Additions
- Building a Universal Design Modular Home
- What Your Modular Manufacturer Needs from Your Contractor
- How to Air Seal a Modular Home
- Making an Offer To Purchase for a Building Lot
- Your Municipal Water and Sewer Connections
- Reviewing Your Modular Construction Drawings
- Potential Permits and Supporting Documents
- Your Modular Dealer and Financing Tasks
- Your Permit and General Contracting Tasks
- Omitting Materials from the Modular Manufacturer
For more information about all the topics covered in the checklists, see my book The Modular Home.