Who has the rights to sell a home pre-construction?

[Macarena Lopez]

Hey there! 

I am currently working with an investor who purchased a couple of lots for new construction. He is in the process of choosing a local builder to work with in Avon Park, Florida. Ideally, he would like to list the project on the MLS to find a homebuyer to pay for the project before its completion date.

But I am curious of the legality of this process, how can the investor (the land owner) promote and advertise a home which he has not paid for. I have seen homes listed on the MLS as new construction and state the projected completion date but I always thought those listings were when Realtors partnered up with the builders.

Who would need to give permission to list the home? Would there be something about this within the builders contract?

[Caroline Gerardo]

If he buys the lot and closes then gets a construction loan he could show plans and specs and digital idea to sell.

If he is just in contract to buy with builder, he cannot sell, he owns nothing. He would need a new contract saying he can assign the lot or agreement.