Can I get my deposit back from the builder? (escrow)?

Question

June of 06', i entered into a purchase contract with a builder in Austin TX to buy a new construction home. It is nearing completion in late January and I am running into a snag. I am looking into financing now and am unable to qualify for any loan due to income. My income will not cover the loan nor will come close. The builder up to this point has NEVER asked me for any type of prequal letter from any lender. Since I cannot qualify for a loan in TX, am I entitled to get my deposit back? I am not familiar with TX law. Please assist.

Answer 1

Read the contract, small print, Usually deposits are not retained and are contingent on financing approval.
Seldom does a builder actually build a custom home for a buyer. They would not, unless financing is already assured. They are usually planned construction anyway.

Most contracts can be broken. If a refund is denied, see a Real Estate Attorney.

Answer 2

Here are links that might be able to help you in your research from our research department
LAWS: http://www.capitol.state.tx.us/statutes/statutes.html
Attorney General’s Office: http://www.oag.state.tx.us/
Uniform Commercial Code: http://tlo2.tlc.state.tx.us/statutes/bc.toc.htm
Frequently asked questions on the courts: http://www.williamson-county.org/JP/faq.html
Property condition, required disclosure: http://www.trec.state.tx.us/pdf/articles/trec/5.008.pdf#search=%22Texas%20Property%20sales%20disclosures%22 or http://recenter.tamu.edu/tgrande/vol8-2/1465.html
Article on Homestead in Texas: http://recenter.tamu.edu/pdf/1136.pdf#search=%22Florida%20Homestead%20Laws%22
STATE’S WEB SITE: http://www.texasonline.com/
Home improvement information brochure from the Attorney General’s office: http://www.oag.state.tx.us/AG_Publications/txts/home.shtml
State bar Association: http://www.texasbar.com/
Free and low cost legal assistance: http://www.texaslawhelp.org/TX/index.cfm
Questions and answers about legal issues from the University of Houston: http://www.law.uh.edu/Libraries/faqs.html
Legal aid: http://texaslawhelp.org/TX/StateDirectory.cfm/County/%20/City/%20/demoMode/=%201/Language/1/State/TX/TextOnly/N/ZipCode/%20/LoggedIn/0/directory/11/searchletters/bysa
I know it's a lot of research but only you know the actual and particular facts of your contractual relationship.
Buena Suerte