The Ultimate Guide to Buying New Construction in Park City, Utah

What Most Buyers Don’t Realize Until It’s Too Late

New construction in Park City looks exciting.
Brand-new homes. Modern finishes. Custom design. No maintenance headaches.

But behind the glossy renderings and model homes, the contracts and timelines can be very different from a typical resale transaction. And in this market, the risks are often shifted toward the buyer without them even realizing it.

I’ve worked with buyers across Park City, Deer Valley, Promontory, and the Jordanelle who were shocked by how new construction actually works once they were under contract. Not because anyone was trying to be dishonest. Because the process is complex, the contracts are detailed, and the assumptions buyers bring from other states don’t always apply here.

So this guide is designed to do one thing:

Help you see around corners before you commit to a new construction purchase in Park City.

Why Buying New Construction Is Different in Park City

In a resale transaction, the home already exists.
You can inspect it, review disclosures, and negotiate repairs before closing.

In new construction, you are often buying something that is still being built. Or hasn’t been built yet.

That changes everything.

You may be agreeing to:

• Large deposits released before the home is finished

• Short timelines between completion and closing

• Limited disclosures compared to resale homes

• Specifications that can evolve during construction

• Warranties that vary widely depending on the builder

• Contracts that are often written in the builder’s favor

None of this is inherently bad. But it does mean you need to approach new construction with a different strategy.

The Biggest Risks Buyers Face With New Construction

1. Large Deposits Can Be at Risk

In many new construction transactions, buyers are asked to provide significant deposits early in the process.

Sometimes that includes:

• Earnest money

• Construction deposits

• Nonrefundable funds once due diligence ends

In higher-end communities around Park City, this can mean hundreds of thousands or even millions of dollars tied up before the home is complete.

If the project is delayed, changes, or runs into financial trouble, recovering that money can become complicated. Especially if the property is owned by a limited liability company created specifically for that development.

That is why understanding deposit structure is critical before signing a contract.

2. Plans and Specifications Must Be Crystal Clear

One of the most common issues in new construction comes down to expectations.

Buyers often rely on:

• Renderings

• Marketing materials

• Verbal conversations

• Design discussions

But legally, the only thing that matters is what is written in the contract.

If finishes, appliances, fixtures, square footage, or design elements are not clearly documented, there can be misunderstandings later.

For example:

• A buyer expects premium appliances

• The contract allows substitutions

• The builder installs a different brand

Technically, the builder may still be compliant.

That is why every detail needs to be documented in writing before moving forward.

3. A Certificate of Occupancy Does Not Mean the Home Is Finished

This surprises a lot of buyers.

A certificate of occupancy means the home is safe to live in.
It does not mean the home is complete.

Items that are often unfinished at closing include:

• Landscaping

• Driveways

• Punch list items

• Exterior features

• Specialty materials on backorder

Buyers sometimes assume they can delay closing until everything is perfect. In many cases, that is not an option under the contract.

That is why it is essential to plan ahead for unfinished items and define how they will be handled.

4. Builder Warranties Are Not Standard

Many buyers assume all new homes come with the same warranty protections.

In reality, warranties vary widely.

Important questions to ask:

• Who is issuing the warranty

• What systems are covered

• How long the coverage lasts

• When the warranty period begins

• What exclusions apply

In some cases, the warranty is issued by the seller rather than the contractor who built the home.

That distinction matters if repairs are needed later.

5. Mechanics Liens Can Create Unexpected Problems

If subcontractors or suppliers are not paid during construction, they may have the right to place a lien on the property.

This can happen even after closing.

Most buyers assume title insurance automatically protects them from this risk. That is not always the case.

Ensuring the correct title coverage is in place is a critical step in protecting your investment.

6. Timelines Can Be Tighter Than Expected

Many new construction contracts include very short timelines between completion and closing.

The Notice of Substantial Completion

The Clause That Catches Buyers Off Guard

If you are buying new construction in Park City or anywhere in Utah, you will receive something called a Notice of Substantial Completion.

This document triggers the countdown to closing.

It typically says you must close within a set number of days after the notice is issued. That might be:

• 4 days

• 7 days

• 10 days

• 14 days

Whatever timeline is written into the contract is the timeline you agreed to the day you signed.

Why This Surprises Buyers

When you first go under contract, the home is still being built. You are thinking about finishes, timelines, and the excitement of the project.

You are not thinking about what happens a year later.

Then one day, the notice arrives and the clock starts ticking.

Now you need to be ready to:

• Wire funds

• Finalize your loan

• Schedule inspections

• Close quickly

And if you are traveling, out of the country, or simply not prepared, it can feel very sudden.

Here’s the Key Thing to Understand

A Notice of Substantial Completion does not mean the home is finished.

It means the home is complete enough to legally occupy and has received a Certificate of Occupancy.

That means the home is livable.
It does not mean every detail is done.

Items like landscaping, punch list work, or cosmetic finishes may still be incomplete, but under most Utah builder contracts, the buyer is still expected to close, and if you don't you are in default of the contract.

The Bottom Line

You will receive a Notice of Substantial Completion when buying new construction in Utah.
It will require you to close quickly.
And it often catches buyers off guard.

The buyers who handle this smoothly are the ones who prepare early, stay in communication with their lender and realtor, and plan ahead as the home gets close to completion.

The Most Important Step in the Process: Due Diligence

Due diligence is where buyers have the most leverage.

Once that period ends, your options become more limited.

During due diligence, buyers should:

• Review all plans and specifications

• Confirm materials and finishes

• Understand deposit terms

• Verify builder credentials

• Review HOA requirements

• Confirm title insurance coverage

• Clarify completion timelines

• Document any agreed changes

This is not the time to rush.

It is the time to get clarity.

What Smart Buyers Do Before Signing a New Construction Contract

Here is the checklist I walk through with every buyer considering new construction in Park City.

Confirm the Builder’s Experience

Look at past projects, timelines, and reputation.

Get Everything in Writing

If it is not documented, it does not exist.

Understand the Deposit Structure

Know when funds become nonrefundable.

Review the Warranty Details

Do not assume coverage is standard.

Plan for Delays

Construction timelines can shift.

Protect Yourself With the Right Team

That includes:

• A knowledgeable real estate advisor

• A qualified lender

• A reputable title company

• A construction-savvy inspector

Why New Construction Still Makes Sense in Park City

Despite the risks, new construction remains one of the most attractive options in our market.

Especially in areas like:

• Deer Valley East Village

• Jordanelle

• Promontory

• Tuhaye

• Silver Creek

• Canyons Village

Buyers are drawn to:

• Modern design

• Energy efficiency

• Low maintenance

• Customization opportunities

• Long-term appreciation potential

When structured correctly, new construction can be an exceptional investment.

The key is approaching it with the right expectations and the right guidance.

Final Thoughts

Buying new construction in Park City is not just about choosing finishes or picking a floor plan.

It is about understanding the contract, the timeline, and the risks before you commit.

The buyers who have the smoothest experiences are not the ones who move fastest.
They are the ones who prepare the best.

And in a market where new construction is expanding rapidly, preparation matters more than ever.

Want Help Navigating New Construction in Park City?

Whether you are considering a custom build, a spec home, or a new development, I can help you evaluate the opportunity, understand the risks, and make a confident decision.