We sign a contract agreement to buy a house and now we find other property, at a lower price and more space. We want to terminate the first agreement. We don't want them to take any actions against us.
What can we do to avoid a sue and (maybe) recover the downpayment money?
2007-08-25 03:26:59 · 9 answers · asked by Hector J. R 1 in Business & Finance ➔ Renting & Real Estate
Read your contract. It should list any contingencies, if there are any. Most contracts will provide for loss of any deposit paid if you fail to follow through with the agreement. The contract may also provide for further legal redress if either party fails to follow through with the agreement.
You have signed a binding legal agreement. If you break the agreement it WILL cost you something. There's virtually no way out of that! Without reading the contract it's not possible to say what your penalty might be.
Consult with a local real estate attorney for advice on this, NOT a real estate agent. Real estate agents cannot give legal advice any more than anyone in this forum can.
2007-08-25 03:49:24 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
If you have a "weasel clause" you can activate that to get out. For instance, if you had a clause that the contract was "Subject to" your approval of a complete inspection or that there was a 72 hour period you could cancel the contract.
If there is no useful weasel clause, then you are stuck. However, in many cases, if the property is a decent deal, you could see if you can Assign the contract. FInd an investor who will take over your side of the purchase. Explain to the seller, that a financial glitch hit that will prevent you from closing (close to the truth) but that if the seller agrees you have another investor who has agreed to purchase the property under the same terms.
If the first deal you negotiated is a real great deal, you might even find an investor who will take the assignment and pay you a few thousand as a finder's fee. If it isn't quite so good, maybe you can sweaten the pot by oferring an investor a couple thousand dollars, so it will be a better deal for them.
Just wondering, where is this property located?
Good luck
2007-08-25 04:07:46 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
Chances are there is a clause that lets the builder keep the earnest money deposit (and additional deposits) if you default.
The best way to get out of this deal is to ask for the builder's grace.....The law is most likely on their side because the contracts builders use ordinarily protect them with regard to deposits.
Hopefully the contract acknowledged that deposit forfeiture is their ONLY recourse, so they can't sue you for additional damages.
You may be surprised that some builders will be somewhat lenient on this if you approach them the right way. Maybe they'll opt to keep only a portion of the deposit. Good luck to you, but keep in mind it's not good to try and breach a contract when the other party is performing under good faith. It's bad business.
2007-08-25 06:35:12 · answer #3 · answered by R.E. Advice 3 · 0⤊ 0⤋
First, GOOD LUCK!
Builders usually have their own contract, which is geared to protect them and not the buyer. If you signed a regional contract, you may have a chance if there were some contingencies on there. No one will be able to give you an accurate answer with out seeing the contract. My advice is to either talk with your Agent or call a real estate attorney.
2007-08-25 03:40:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can probably kiss your downpayment money goodbye, and can't really stop them from taking further action if they want to, unless there is some specific wording in the agreement about cancellation that says you'd owe a lesser amount.
When you sign a legal contract, you are agreeing to be bound by it. You can't just say "oh, I changed my mind".
2007-08-25 05:06:45 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Time is your enemy on this.
Almost all states have an automatic clause that gives you a period of time to back out of the contract. IF you have only had a day or so since you signed, notify the builder immediately in writing of your wish to back out. Do this today, even if you come to find out that you are no longer entitled to back out. If you just tell him you want out, and do not put it in writing, you can still be stuck with the contract. All he has to do is wait out the cancellation period, and if you have not given him written notice, you are bound.
Most states give you 72 hours, and some give you up to 10 days.
These clauses are in all contracts, whether written in or not, as they are part of state law and the contract can not be enforced if it is violating state laws.
As for your down payment, that will depend on the state law, and if any work on the house has been done. Many builders will try to break ground as soon as the period to back out passes. You may have to give up your deposit to get out.
Some contracts will allow a longer period to back out, as long as construction has not started, but will require you forfeit you deposit.
In all cases, seek a lawyers advice to make sure you know what the law is and what you options are.
2007-08-25 03:52:41 · answer #6 · answered by Mcgoo 6 · 1⤊ 2⤋
Sorry, moving out of the country is not a valid reason for canceling a contract. You signed it and you are probably stuck with it. You can, however, be legally creative. Ask Verizon if they will waive your early term as you are really unhappy with their service. Ask if they will prorate your early term fee if they won't waive it completely. Ask AT&T to give you a nice big credit for bringing your service to them. Cell companies are very competitive and it never hurts to ask. Remember, the early term fees are not meant as punishment to you. They help defray the cost of cell companies selling you handsets at a much reduced price.
2016-05-17 10:49:38 · answer #7 · answered by ? 3 · 0⤊ 0⤋
you lawyer should be able to help. I think you can back out with no anything help against you. I don't know about the down payment, should be fight able though. My mom had the same problem a few years back and she was able to get out.
2007-08-25 03:35:25 · answer #8 · answered by Anonymous · 0⤊ 2⤋
I can't wait to see the answers for this one
2007-08-25 03:36:03 · answer #9 · answered by Clueless 5 · 3⤊ 0⤋