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 15:53:11 · 8 answers · asked by Jitsen 2 in Politics & Government ➔ Law & Ethics
This happens more often than you can imagine. It happens in hot markets.
Does this sound familiar? ... You sign and are told the developer's authorized representative isn't available. You are told you'll get your signed copy in the mail, later. Later never comes. The market stays hot. Six or eight months later you are notified that you will have to pay an additional $40K or maybe more. You complain and get told you don't have a valid contract since the developer's representative never signed it.
You see, they can take those contracts to the bank and get financing for the development even without the developer's representative's signature. If the market cools off, or goes down they sign the contract and send it to you. If the market stays hot, or gets hotter they screw you. They can't lose.
There's nothing you can do. It's unethical, but not illegal.
2007-06-11 16:58:07 · answer #1 · answered by Yak Rider 7 · 0⤊ 0⤋
Did you get a signed copy of the contract also signed by the home builder ? If the builder did not sign the agreement, you do not have a contract, and your earnest money can be refunded and the deal nullified.
2007-06-11 15:58:06 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
If they cashed your check, you probably have an enforceable contract but how long ago was it? Are we talking days here or months, and how much money are we talking about. I would probably call the Attorneys General's office or the Dept. of Professional Regulation in Texas and they should be able to help you.
2007-06-11 15:58:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you can prove that they are not telling the truth then yes you can sue them. I would think it would not be worth doing that though. Right or wrong they have not built the house yet and if you cause much problems they will be sure there are some hidden charges That you have to pay later.
Take the money owed you and ask them for another one hundred for the problems they caused you.
Some times it is better to just back off and find another way.
2007-06-11 16:23:44 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Check the building company out on Better Business Bureau (www.bbb.com)
Send correspondence through that, usually gets companies attention.
Hope things work out, sounds fishy!
2007-06-11 15:58:19 · answer #5 · answered by Tbug 2 · 0⤊ 0⤋
I read the answers here and most sound pretty good. basically it sounds to me like you may have a case based on housing discrimination. maby they didn't like your colors you picked for the house. i would definitely insist on a meeting with them and consult an attorney. good luck
2007-06-11 16:12:14 · answer #6 · answered by doug h 5 · 0⤊ 0⤋
Get a lawyer.
2007-06-11 15:58:21 · answer #7 · answered by Moe 6 · 0⤊ 0⤋
definitely get a lawyer and keep all paperwork, do not cash any checks they give you.
2007-06-11 16:07:39 · answer #8 · answered by Anonymous · 0⤊ 0⤋