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Home Contract question

Asked by Homebuyer, Mon Apr 20, 2009

We signed a contract on new home and also locked the intrest rate for the price we signed. Now the builder comes and says that we made a mistake and the new price is more than what we signed in the contract. Is this legally right?

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HB: You may be facing more "surprises" in the future. For other considerations please review this doc:

http://docs.Steven-Anthony.com/BuilderRealtorAgent.pdf

There is quite a bit to be aware of...

Best, Steve
0 votes Thank Flag Link Mon Apr 20, 2009
Homebuyer,

Do you have a copy of the full contract, signed by BOTH sides? If so, you have a ratified binding legal contract. READ the full contract and see if there is any provision in there that suggests the Builder can raise the price. I am sure, if the prices were falling, you would go back and ask for a reduction in price, right.
They cannot just "make a mistake" this is a legal document. Consult a Real Estate lawyer. Contact me if you want the name of a good one.

Also, please, people, understand, go with a Realtor to represent YOU, not the builder. They pay us, not you. If you dont go with a Realtor, they dont give you the commission they would pay us, they keep it! So you benefit by having representation on your side, your Realtor can go over the contract for and with you. Also, builders have their OWN contracts, not the regular CAR or PRDS contracts we use in the residential market, so they are different, and may have that provision in there for the builders benefit!
DID YOU TAKE A REALTOR WITH YOU? I sincerely hope you did.

Take care, be well and safe, and all the Best,
Nina
0 votes Thank Flag Link Mon Apr 20, 2009
Homebuyer, if you would like an informed NON-LEGAL review of your situation fax me your contract and I'll share my thoughts (see website for fax). Its really tough not having the contract to refer to.

Best, Steve
0 votes Thank Flag Link Mon Apr 20, 2009
Talk to a lawyer who will advise you on this. Realtors are not lawyers and we can not comment on the contract that you have signed which is a legal document.
0 votes Thank Flag Link Mon Apr 20, 2009
Tell me you are using a buyers agent for this transaction....and not the builder's sales person...
0 votes Thank Flag Link Mon Apr 20, 2009
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
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Hopefully you're being represented by a Realtor...whose job it is top protect you in these situations. This is the perfect example of why you need a buyers agent when buying new construction,
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Mon Apr 20, 2009
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Hi Home buyer,
No, this is not legally right, however when new construction is concerned, the general rule of thumb is to expect up to a 10% difference from the initial quoted estimate. Wouldn't it be nice if the final price came in 10% lower than the quoted price!?!? If the "new price" is more than 10% higher than the price quoted, fight it. Your second option is to talk to another builder, or at least get other WRITTEN estimates from other local builders. Good Luck!
0 votes Thank Flag Link Mon Apr 20, 2009
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