Housing

Builders contract: way out

Teradata FAIP02
Dec 1

Is there a way to get out of builders contract? I got into a contract with a big builder who has his own financial firm when the market was up. Now with the market going down the house isn’t worth the price I offered and also its not the ideal house ( had made a adjustment as one I want I couldn’t have afforded in that growing market). Now I am thinking of a way out. Looking for advise. Has anyone been able to get out of a contract ? If yes, on what terms ?

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  • Microsoft do_needful
    Did you read your contract?
    Dec 14
    • Teradata FAIP02
      OP
      Yes multiple times. There doesn’t seem to be a straight forward way, but looking for loopholes or ideas that someone within community might know of or has been able to use.
      Dec 1
    • Google FYlH08
      That's why you put contingencies in your contract. Inspection contingency, loan contingency, appraisal contingency etc. If you had those, you could back out and not even lose your deposit. Otherwise you'll lose your deposit in escrow.
      Dec 2
    • Teradata FAIP02
      OP
      Contract has loan and financial contingency, but the builder has his own bank. Which means we can’t really get out unless something dramatically changes financially in our lives. Inspection contingency isn’t a part of new construction homes contract.
      Dec 2
    • Microsoft do_needful
      Usually you still be able to inspect your new construction home and force them to fix any issues that you found but unfortunately you can't back out if this is a new construction home.
      Dec 2
  • Nvidia smartpm9
    You are in breach of contract, so seller can keep your earnest money for his liquidated damages, but before doing that seller should have taken some steps to reasonably mitigate the damages, talk to the seller and find out what that is, you can get some part of your earnest if you are lucky.
    Dec 20
  • Microsoft Hellohalo
    My guess is you lose earnest money and nothing else.
    Dec 12
    • Teradata FAIP02
      OP
      Yes the earnest money is 5%, hoping to save atleast some of it.
      Dec 1
    • Google FYlH08
      That's why you put contingencies in your contract. Inspection contingency, loan contingency, appraisal contingency etc. If you had those, you could back out and not even lose your deposit. Otherwise you'll lose your deposit in escrow.
      Dec 2
  • VMware BobbleHat
    Sell a derivative contract to someone else that thinks the real estate market only goes up. Make sure they know this is the last chance to pay this price.
    Dec 21
    • Teradata FAIP02
      OP
      Transfer is not allowed by the builder
      Dec 2
  • Expedia No!!!!
    What builder is this and what community ?
    Dec 12
    • Teradata FAIP02
      OP
      Toll brothers
      Dec 1
    • Expedia No!!!!
      I sent a DM to you. Please respond.
      Dec 2
  • Bank of The West / Consultant
    GSW

    Bank of The WestConsultant

    PRE
    Cisco, eBay, NetApp, VMware
    GSWmore
    Only if you lose a job you get your $ back else they get to keep it. Toll May give some back if you work with them.
    Dec 20
  • Amazon
    Bejos

    Amazon

    PRE
    Microsoft, Oracle
    Bejosmore
    If the only concern is the price ask the builder to reduce as I know few builders reduced in bad economy. The reason is the builder has to sell the customized home which isn’t going to easy for builder and he is aware of it.

    Also check if the builder reduced price for new homes he is selling now, which can be used as a point of discussion.
    Dec 20
  • OpenTable Meliodas
    How would we know without reading the contract?

    This is what attorneys are for. Go back to the attorney that reviewed the contract before you signed it and ask them how to get out.
    Dec 20
  • Yelp aEqz40
    How much money is at stake
    Dec 20
  • Facebook public2
    Rofl
    Dec 20
  • Apple applpark
    I knew a guy who lost his job and his new construction house was still pending. He told the builder and they gave him all his deposit back.
    Dec 10

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