No-Competition Lots

A no-competition lot is the lot on which a particular builder will build the buyer’s home. This term is common in new housing developments. A buyer will come in and choose a lot in the subdivision and then will choose a builder to build a house on that lot to their specifications. In many cases, the buyer must use a particular builder, who is the exclusive builder allowed in a subdivision. Many subdivisions are developments made by the builders to corner the market on other builders coming in and doing work. There is no competition where the buyer competes with other buyers for the lot, and there is no competition in choosing the builder who will actually do the work on the building; this is why the term “no-competition lots” exists.