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Started By
Message
Your under contract for a house that was supposed to be closed on back in November...
Posted on 1/3/20 at 10:05 am
Posted on 1/3/20 at 10:05 am
It's a new construction house. The builder owns the lot and is funding the construction. You look at the plans and decide you want it. You sign the contract back in June and the closing date is in November. It's now January and you still haven't closed on it with no contract extension. Are you entitled to your earnest money you put down with the contract regardless if you agreed to it being non-refundable?
9
Posted on 1/3/20 at 10:09 am to finchmeister08
I would believe so since the contractor did not fulfill his portion of the contract. Was there any penalty clauses for late completion or breach of contract requirements?
I know when you’re selling a house, the buyer can pretty easily find an out and get their deposit money back.
But I’m no Realtor/Contract Lawyer. I’d be pretty pissed if you’re out money.
I know when you’re selling a house, the buyer can pretty easily find an out and get their deposit money back.
But I’m no Realtor/Contract Lawyer. I’d be pretty pissed if you’re out money.
Posted on 1/3/20 at 10:11 am to LSUtigerME
quote:
I’d be pretty pissed if you’re out money.
that's what my agent is telling me. and i'm livid.
Posted on 1/3/20 at 10:27 am to finchmeister08
Just don't want it now? House not completed? How close is it?
Posted on 1/3/20 at 10:42 am to achenator
my job is moving to indiana and i'm going with it. i'm just using the "expired contract" as reason to justify backing out. and it's also not completed.
i'm getting married in february as well and i was hoping on buying it while i was single so i could get a USDA loan. well, the bank informed me that USDA mortgages are 30 days out on approvals and i'm getting married on the 15th. i haven't gotten any updates on where the house is in the construction either.
it's all been just a cluster the past couple of months.
i'm getting married in february as well and i was hoping on buying it while i was single so i could get a USDA loan. well, the bank informed me that USDA mortgages are 30 days out on approvals and i'm getting married on the 15th. i haven't gotten any updates on where the house is in the construction either.
it's all been just a cluster the past couple of months.
Posted on 1/3/20 at 10:44 am to finchmeister08
Is this BR area? What builder? Are you still in contact or has he disappeared?
Review your contract closely, you might have agreed to a closing date with possible X days of extension.
Review your contract closely, you might have agreed to a closing date with possible X days of extension.
Posted on 1/3/20 at 10:48 am to finchmeister08
quote:
It's now January and you still haven't closed on it with no contract extension
Why hasn’t it closed. The answer to this is they key to this whole situation.
quote:
Are you entitled to your earnest money you put down with the contract regardless if you agreed to it being non-refundable?
Non-refundable? That’s BS. The other party can’t just pocket your money and not fulfill their end of the contract.
Posted on 1/3/20 at 11:06 am to finchmeister08
I'd be surprised if the contract didn't have some kind of contingency for construction delays. Of course, I'm also surprised that a close date was set so far out on a construction.
Posted on 1/3/20 at 11:07 am to MikeBRLA
quote:
Non-refundable? That’s BS. The other party can’t just pocket your money and not fulfill their end of the contract.
well, that's what i'm currently being told. my job will be expensing alot of the moving costs and i'm hoping this will be covered somehow since i went under contract before the announcement of moving was made.
Posted on 1/3/20 at 11:08 am to MikeBRLA
quote:
Non-refundable? That’s BS. The other party can’t just pocket your money and not fulfill their end of the contract.
Unless the contract allows extensions on closing for any number of reasons, which I'm guessing it does.
And be careful...I'm guessing your contract also allows for specific performance.
Posted on 1/3/20 at 11:16 am to Ex-Popcorn
Posted on 1/3/20 at 11:24 am to finchmeister08
You still didn’t answer they key question which is, why didn’t the closing take place?????
Posted on 1/3/20 at 11:33 am to MikeBRLA
quote:
You still didn’t answer they key question which is, why didn’t the closing take place?????
i'm pretty sure i did. it's still under construction.
Posted on 1/3/20 at 11:35 am to finchmeister08
The Good
-You should be able to get out of your contract; extensions should have been signed once the closing date lapsed.
The Bad
-You will likely lose your earnest money deposit and any due diligence costs that you may have incurred.
-You should be able to get out of your contract; extensions should have been signed once the closing date lapsed.
The Bad
-You will likely lose your earnest money deposit and any due diligence costs that you may have incurred.
Posted on 1/3/20 at 11:38 am to finchmeister08
Ahh. In that case your builder failed to fulfill his end of the agreement and you are entitled to not only your earnest money back but also any penalties that SHOULD BE in the contact for him breaching the contract.
But without reading the contract in its entirety it’s hard to give advice.
Bottom line is you need a real estate attorney and to quit taking legal advice from any real estate agent.
But without reading the contract in its entirety it’s hard to give advice.
Bottom line is you need a real estate attorney and to quit taking legal advice from any real estate agent.
Posted on 1/3/20 at 11:52 am to finchmeister08
Never write “time is of the essence” in a contract unless you’re *certain* that you won’t be the party that muffs the punt. At least in my state, that’s the case. By not closing on time and not getting an extension, the builder shot himself in the nads with that wording. Even worse, he (or his agent/attorney) wrote the contract. Dumb.
I have no knowledge of how things work in your state. But here, even though you’d still likely need an attorney, you would get your earnest money back, unless there’s something else in the contract that we don’t know about.
Uh, this agent that’s telling you that you’re out of luck, is this the builder’s sales agent? ;)
I have no knowledge of how things work in your state. But here, even though you’d still likely need an attorney, you would get your earnest money back, unless there’s something else in the contract that we don’t know about.
Uh, this agent that’s telling you that you’re out of luck, is this the builder’s sales agent? ;)
Posted on 1/3/20 at 12:23 pm to Jag_Warrior
quote:
Never write “time is of the essence” in a contract unless you’re *certain* that you won’t be the party that muffs the punt.
What exactly is “time is of the essence...” insinuating.
This post was edited on 1/3/20 at 12:24 pm
Posted on 1/3/20 at 12:31 pm to finchmeister08
I’ll do a copy & paste for you from a legal dictionary site:
Time is of the Essence Law and Legal Definition;
"Time is of the essence" is a provision in a contract which indicates that the performance of every contractual obligation within the time frame designated in the contract is essential to avoid a breach or default of the contract.
Time is of the Essence Law and Legal Definition;
"Time is of the essence" is a provision in a contract which indicates that the performance of every contractual obligation within the time frame designated in the contract is essential to avoid a breach or default of the contract.
Posted on 1/3/20 at 1:47 pm to finchmeister08
Draft a letter and send to your builder/seller:
"Dear X,
This letter shall serve as formal cancellation and termination of the purchase agreement dated ______ for the property located at _______. The agreement required closing on or before November 20, 2019. Given the failure to achieve completion and closing by that date, buyer hereby elects to cancel the contract."
"Dear X,
This letter shall serve as formal cancellation and termination of the purchase agreement dated ______ for the property located at _______. The agreement required closing on or before November 20, 2019. Given the failure to achieve completion and closing by that date, buyer hereby elects to cancel the contract."
Posted on 1/3/20 at 2:15 pm to Ex-Popcorn
quote:
Draft a letter and send to your builder/seller:
what's that gonna do?
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