2007-01-17 23:37:27 · 14 answers · asked by Sarah F 1 in Business & Finance ➔ Renting & Real Estate
Have you put down a deposit? If so how much? Up to exchange of contracts you will only lose the none refundable deposit.
In some pre-exchange contracts you might be entitled to your deposit back minus an administration fee. Some developers actually pay the deposit for you but generally 10% of the purchase is the amount will you lose. Can you get someone else to take over the purchase? Can you sell the property at completion?
2007-01-18 22:49:46 · answer #1 · answered by Jeff V 2 · 0⤊ 0⤋
Don't let these people scare you. (Especially don’t buy the property just to sell it again, unless you are in a place like Phoenix that goes up 40% a year)
1. They are correct that you are in a legally binding contract.
2. As Hunter said, if the contract was written correctly, you will have at least one out, if not 3-5. I always have at least one blanket out and a couple "normal" outs.
3. Look through all your outs and determine which is the easiest. If you have a buyer's agent, discuss it with them. If done correctly, you should be able to walk away with nothing lost but time.
4. You almost always have an out about not being able to attain financing. This one is easy to use to get out of the contract. If you cannot come up with any other way, then apply for a dozen credit cards. Two weeks later try to get a loan from a bank and see what they say. I can almost guarantee that you will not be able to get the interest rate specified in your contract. Take this info to the contractor, and you are off the hook. You'll screw up your credit for ~3 months; that’s it.
Good Luck.
2007-01-18 01:46:43 · answer #2 · answered by Leo N 2 · 0⤊ 0⤋
You need to read the contract.
You should also get legal advice.
In some contracts the damages will be the loss of the deposit. In other situations the seller can force you to complete or pay more than the deposit in damages.
As it is easier to just keep the deposit and move on that is likely the more probable. Just check the contract to really understand what it says. You signed it so I would expect it was spelled out before you signed. It is not uncommon for someone to back out so most all contracts will deal with the situation.
2007-01-18 01:57:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you handle yourself correctly, you may end up not loosing a dime.
First read the contract and see what are the stipulations for cancellation on the part of the Buyer. When you have located the loophole in which you are entitled to receive a full refund of your deposit. That's your reason why you must pull out. Don't just pull out and hope for the best. It's worth working on for at least a few minutes, to see what your legal rights are. Then align with what is permissible.
Best of luck
2007-01-17 23:41:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You could pull out, but be aware you have contracted to buy and proceeding can be taken against you by the builders. They will expect to be able to retain your deposit at least.
Contact them immediately, advise them of your problem and hope that they can offer you a reasonable compromise. They should be able to resell the property and their loss will be limited to the loss of interest on the amount you would have paid for the period until a new purchaser pays.
2007-01-17 23:45:30 · answer #5 · answered by Davy Crockett 3 · 0⤊ 0⤋
After contracts have been exchanged the purchase is legally binding and VERY difficult to pull out of. The bill will be painful.
2007-01-17 23:41:33 · answer #6 · answered by The Alchemist 4 · 1⤊ 0⤋
You can pull out at any time up to completion, however it is a lot harder after exchange. And a lot more costly too. You will usually have to pay a percentage of the value of the house you are buying, but this percentage will vary.
2007-01-17 23:40:56 · answer #7 · answered by Wafflebox 5 · 0⤊ 0⤋
You want to pull out of a major financial deal, and you ask THIS bunch if it will be okay.
Yes you will lose money but it's probably only "borrowed" money in the first place. Solicitors grow fat thanks to people just like you.
2007-01-17 23:42:35 · answer #8 · answered by Not Ecky Boy 6 · 1⤊ 0⤋
wow......agree with "ecky"
you ask this bunch..
you could be out tons............
last guy pulled out..thought he would just lost a deposit..and i sent him..some
"law precedints"..
you could be out lots.....and just thinking of pulling out is going to cost.......court costs alone..
wow........
they did an exchange..and now your pulling......
going to make some lawyer rich..
if you gave the area...
could send you some legal precidents......on what people "lose"
just for saying the word "pull"
you got of lucky with the word "exchange.
2007-01-18 00:16:04 · answer #9 · answered by m2 5 · 0⤊ 0⤋
what did the contract say about breech of contract?
if the contract is signed and done, you'll prob loose everything
2007-01-17 23:43:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋