I am buying a house in a new development in austin that everyone wants to get in, so the company held a lottery to setup a list of who would get first dibs on available lots. so i was told I drew #6, and i had a meeting with the builders, selected a lot, a basic house design, prequalified for a loan, signed the contract, and paid the earnest money. Then after arranging an appointment with the builder's designer for more specific exterior/interior colors, flooring, kitchen etc., my i get an e-mail from the builders saying they made a mistake and i was actually #126 on the list instead of #6. The e-mail said to stop payment on the earnest money check and that the builders would pay any stop payment fees and/or refund the earnest money.
Basically am i getting screwed? Is there anything we can do? I ask because we signed the contract but they builders are saying they didn't sign the contract so there is no contract. Does it make a difference that they cashed my earnest check?
2007-06-11 10:39:33 · 7 answers · asked by Jitsen 2 in Politics & Government ➔ Law & Ethics
Do you have any documentation that states you drew #6, or was it verbally communicated? Is anything in the contract that states what lot you put the deposit on? If yes to either or, get a good lawyer and nail them. Now, you also need to take into consideration that you are coming down directly on the builder that is supposed to build your home for you....if you get my drift...
2007-06-15 08:40:20 · answer #1 · answered by Gipper 6 · 0⤊ 0⤋
It does not matter if they signed a contract or not they initiated an action by which you based your actions. You operated in good faith and through no fault of your own they failed to perform. Technically by most state contract laws by them accepting your earnest money they agreed to perform. This is not difficult to prove since a reasonable person would conclude that you would not have performed several of the actions without some agreement. And since both parties acted as if an agreement was made then it concludes an agreement exsisted. As for compensation they are only required to make you whole and refunding all monies owed is a good start. However they are responsible for all other fees you incurred because of this process such as any loan fees (if you can not use the loan for another home) or lost moving deposits. It is unlikely that you can compel the sale of the home since you did not lose a home. Now unfortunately they may attempt to stonewall you and fight you regarding any other recouped monies. To handle this I would suggest contracting legal services and have a letter or two sent indicating possible court action. A more favorable alternative would be to present them with a bill so large it is easier to for them either to award you a home in the second phase or sale you the home you want. From here on out document everything and save all communications with the builder.
2007-06-11 10:55:25 · answer #2 · answered by levindis 4 · 1⤊ 0⤋
You find and consult a real estate attorney in your area. Regardless of wheter they made a mistake or not, it isn't your fault they screwed up, and you shouldn't have to pay for thier mistake.
If you have a contract already, I would try and sue them for breach of contract. Plus if they decide not build your house, you have certain entitlements you can and should be compensated for any and all losses. Sue the crap out of them.
2007-06-11 10:58:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You're screwed, mistake is not a defense under the law. Sucks I know. They have effectively balanced their reputation against your opinion of them and decided it's best for them to screw you over. Maybe you can get more out of them, compensation for your time, etc..
2007-06-11 10:48:12 · answer #4 · answered by RP McMurphy 4 · 0⤊ 0⤋
If they told you to stop payment on the check, but it was cashed, you may have to take them to court to get the money back. If it hasn't been cashed yet, call your bank and stop the payment.
2007-06-11 11:02:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Their mistake - threaten to get a lawyer immediately and do so if they are hard nosed about it. Their mistake, not yours. A verbal agreement counts.
2007-06-11 10:45:24 · answer #6 · answered by Lake Lover 6 · 0⤊ 0⤋
You need a Real Estate Lawyer.
suggest you search http://www.findlaw.com for one in your area. This is something that anonymous nobodies here can't help you with.
2007-06-11 10:44:21 · answer #7 · answered by arus.geo 7 · 0⤊ 0⤋