We have signed a contract for a lot in a subdivision. Since, we have been told there will be a detention pond put in the back corner of the lot (subdivision not quite finished).

Long story short, we no longer want the property and are trying to get our earnest money back. Contingencies in the contract that could help us are 1) land must appraise for contracted price 2) seller (developer) must submit a final Ristrictions and Covenants to buyer for review and approval.

Does "...for review and approval" mean that if we don't approve, then we have a way out of the contract? We are talking with our agent but I would like to get others opinions.

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Posted by Motorboat

At the camp

Member since Oct 2007

22666 posts

Posted on 2/23/15 at 9:28 am to Sigma

quote:
We are talking with our agent but I would like to get others opinions.

then what good is your agent?

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Posted by GFunk

Denham Springs

Member since Feb 2011

14966 posts

Posted on 2/23/15 at 9:32 am to Motorboat

If the developer is fighting with you over Earnest Money then they're one helluva sh!tty developer.

I've never-ever-heard of someone fighting over that. Then again, it's usually no more than $100-500 bucks. You may have more involved or invested.

But to be quite honest, I doubt seriously a detention/retention pond is going to be something he had to run by you for your approval.

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Posted by Sigma

Fairhope, AL

Member since Dec 2005

3643 posts

Posted on 2/23/15 at 9:44 am to GFunk

quote:
If the developer is fighting with you over Earnest Money then they're one helluva sh!tty developer. I've never-ever-heard of someone fighting over that. Then again, it's usually no more than $100-500 bucks. You may have more involved or invested. But to be quite honest, I doubt seriously a detention/retention pond is going to be something he had to run by you for your approval.

The earnest money is 10K. I'm not really concerned about the issue of him running the idea past us. We've already met with him and his response was just to run the drainage along the easement. A nonstarter for us as well, but he has the right. My question is about how we can get out of the contract, as written, and the interpretation and consequence of the language.

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37034 posts

Posted on 2/23/15 at 10:32 am to Sigma

I'm not sure if lot deals are different than house deals, but I know with a house sale, there is generally language that stipulates if the condition of the property has changed between contract signing and closing, then the contract can be voided. I would think a retention pond would certainly be a change.

That having been said, if the pond stays within the easement, I'm not sure what your options are.

For 10K of earnest money, I'd spend an hour of legal fees to consult with a real estate attorney.

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