Home Buying in 75216>Question Details

theone, Home Buyer in Fort Worth, TX

Can the builder of a new home terminate your contract because you haven't gotten loan approval before closing date?

Asked by theone, Fort Worth, TX Tue Dec 31, 2013

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10
Read your contract. Contracts between sellers/builders have specific performance dates, all parties must be in compliance. You cannot close without financing...
unless you are a cash buyer.
0 votes Thank Flag Link Wed Jan 15, 2014
Contact a Real a Estate Attorney and consult your a Realtor.
http://www.tcrdallas.com
0 votes Thank Flag Link Fri Jan 3, 2014
As others have already suggested refer to your sales contract and if necessary have an attorney review it. However bear in mind the essence of the contract was that the builder agreed to build you a home, and you agreed to secure financing and by a certain date so that the builder would have no reason to be concerned that you could not close per the contract. If you passed the mortgage contingency date then the builder has the right to terminate your contract. Have you spoken with the builder in and effort to work out an amicable solution?
0 votes Thank Flag Link Wed Jan 1, 2014
I agree with my colleagues; refer to the contract, which in my experience working with builders, does contain a contingency clause for loan approval.
0 votes Thank Flag Link Wed Jan 1, 2014
I would suggest that you read the contract and then talk to the builder.

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0 votes Thank Flag Link Tue Dec 31, 2013
You signed a contract to purchase the home and I believe that you will find the answer to your question within the contract. Ask the builder's sale rep to point out the language in the contract that empowers the builder to cancel if you do not perform your contractual obligations.
0 votes Thank Flag Link Tue Dec 31, 2013
The builder can technically terminate the contract. However, most builders with work with a buyer if a close date needs to be delayed 1-2 weeks. Many factors can occur during a real estate purchase with variables that fall outside the buyer and lenders hands. In helping many buyer buy builder homes I have never known a builder to cancel a contract when a buyer I represented needed a week or two more to close.
0 votes Thank Flag Link Tue Dec 31, 2013
I doubt that they can that easily, but this is more of a question for a lawyer. If you used a builders contract, rather than one Realtors use, those can often protect a builder much more than you and so you really will need to speak with a lawyer if you used the builders contract. I have sold homes and not gotten loan approval until the day before or a day or two after the closing date -- which is more of a goal than set in stone.
0 votes Thank Flag Link Tue Dec 31, 2013
Financing and loan approval are a part of the purchase agreement. If a buyer can't close on time then yes, the seller can terminate the contract.
0 votes Thank Flag Link Tue Dec 31, 2013
1. Close date is contractual agreement between you and your seller
2. You refer back to executed sales agreement what any and all parties can and can't do if one party does not fulfill contract obligations.
3. If the contract specifies IF YOU CAN'T obtain loan approval then YES the builder can terminate your contract.

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0 votes Thank Flag Link Tue Dec 31, 2013
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