Quote:
Originally Posted by westernrider75
Why is it any different than building a house on a lot you bought anywhere else?
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Typically, in The Villages and many other planned developments, the developer owns the lot and the house until it is ready to occupy. Then, you go to closing and ownership is legally transferred from the developer to you. So, you have none of the liability for the many risks involved in owning a lot and constructing a house. The developer assumes those risks and has a very expensive builder's liability insurance policy. As an individual, you cannot buy or even afford a liability insurance policy to adequately cover these risks.
Yes, you can buy a vacant lot and hire a "reputable" contractor to build a house on your lot who hopefully is well funded and has adequate insurance. But, there is no way to know what could happen or how you can be sued as the property owner. For example, suppose an undocumented worker falls off the roof and is permanently disabled, and his employer neglected to buy workers compensation insurance. Or, suppose a child walks into the house during construction and get seriously injured. Suppose the contractor files for bankruptcy. To me, it is not worth the many risks of owning a vacant lot and building a house. I did do it many years ago for profit, but stopped because I couldn't sleep at night.