Glossary

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Gag Rules
A gag rule is a provision in a contract that specifically prohibits a buyer from publicly voicing his or her complaints about the home builder. Gag rules provide home builders with a certain level of protection against negative publicity. However, home buyers who are unhappy with specific aspects of the home have some recourse. They can contact the home builder directly. New homes come with a warranty, and many items in the home are covered under this warranty. Additionally, the final walk-through is an opportunity for new home buyers to take note of any flaws in the construction and allow the builder to fix them before the final closing date. Ultimately, gag rules encourage home buyers to collaborate directly with the home builder to correct specific issues that need to addressed.