Can I back out from new house contract.?

Question

I bought a new house from Shapell. I have put down payment, and bought some upgrades. If I back out, how much money could I get back.

Thanks

Answer 1

As long as you have not closed you can back out at any time, but read your contract it may entitle the company or seller some of your earnest money and option money.

Answer 2

You are not "entitled" or "allowed" to back out unless it is under terms specifically outlined in the contract. If you qualify for the house, they CAN sue you to make you close. With that said, they probably WON'T sue you to force you to close. If you've simply changed your mind, you will surely lose the earnest money. If the upgrades have already been ordered, you'll probably lose that money too. Builders' contracts are very seller-sided. If you had a Realtor representing you, the builder might be more lenient, simply to stay in good graces with the Realtor community.

Answer 3

Read your contract. You can back out until the closing but the contract will spell out all the penalites for doing that. For sure, you will loose your deposit and possibly any deposit made on the upgrades too. You may want to talk to a lawyer ASAP too if you think that you are entitled to more money back.