Can I get out of a real estate contract signed 2 yrs ago?

Question

I signed a contract to purchase a pre-construction condo in April 2005. I put down 10% of the purchase price and it was supposed to be finished in the same year. The dates kept getting pushed back and now it is February 2007 and should be finished within the next 2 months. I do not want this property anymore since I decided to move out of the state. Can I get out of this contract with my deposit?

Answer 1

Read your contract carefully. The 10% deposit is probably higher than a small claims court will allow so you may have to hire an attorney. However, that attorney may accomplish what you need with a well drafted letter since they did not live up to their contract. If a move in date isn't written in the contract let the lawyer know what the verbal agreement was.
In the meantime you might see what they are now selling for. If they are selling other condos for more in the complex you may be better off just putting it up for sale. If it has gone down in value you may at least be able to renegotiate since they took so long in a market that was getting cheaper.

Answer 2

Does the contract contain any language regarding the date when construction is to be finished? If they have exceeded that date then you may have an out there. Or if the condo is not built to the specifications outlined in the contract, then that's also a breach. If you decide to break the contract based on a technicality, be ready for a long battle. This would be your absolute last resort, and chances are the real estate company fulfilled the contract, so the outlook there is kind of bleak.

It may just be easier to talk to the real estate company and tell them your circumstances. If they are willing to break the contract with you, then great. I wouldn't worry too much about the deposit if they do this, since they would be doing you a favor to begin with.

If you have no way out of the contract, you can just turn around and sell the condo to someone else when it's completed. You might even come out with a profit if you sell it, though there's no guarantee how long it will take for it to sell.

Answer 3

You must read your contract.
Is there a date that the construction needs to be finished?

If you have a clause that states due dates for construction - then you have a way out.

Read what it says again, and if you need to consult a real estate agent for their opinion. You may also consult a real estate lawyer but that will cost you plenty.

You may notify them if you have the clauses in your favor, and tell them due to these clauses you want your money back immediately, and lost interest due to their construction delays.

GOD bless us one and all, always.
CPA-retired
MBA-Boston Univ.

I sold real estate working my way through college - so the real estate broker is the best bet - and it's a good way to meet a professional who may know what they're doing.