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Jimmy, Home Buyer in Chandler, AZ

Home builder try to back out of a contract

Asked by Jimmy, Chandler, AZ Thu Dec 9, 2010

We purchased new house on August at price of $288,995. Two month later the builder lower the price by $20,000. Basically within two months, we lost 20k. We called the sale office, the salesman told us that they offer lowest price guarantee he will do a new addedum to match the new price. He faxed us the new addedum with extra 5k incentive. We were very happy. But a couple of days ago, the salesman called and told us the new addedum was declined by his broker, he would like to void the new addedum. Can the builder legall do that? What are my options are? Thanks in advance.

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6
Dan,

Thank you for your help. The salesperson is working for the builder. He is the one signed our purchase agreement and all the addendums. He is also the one trying to back out of the addendum he signed. He is saying that his broker ( I assume the broker he refers to also work for the builder) declined the addendum he signed. We called the builder main office, the answer we got is that they did not approve the last addedum the salesperson signed. Almost like the saleperson did not talk to anyone and just assigned the price adjustment addendum. Of couse, as buyer I have no way to know if this is true or just the trick the builder is playing to back out of the last addendum.
0 votes Thank Flag Link Fri Dec 10, 2010
Jimmy,
So, based on your clarification, the builder signed the addendum, but the agent's broker is not happy with it? I can envision that there may be some vague or confusing language issues which need to be clarified. This can be done by mutual agreement and a new addendum resolving the specific language but maintaining the overall intent.
If the broker is not offering this, why and what is their standing to interfere with your fully executed transaction with the builder?
Agents and brokers are not principles of in the purchase & sale of homes; we facilitate the transaction representing our clients. We generally do not have the power to void a fully agreed upon document against the wishes of either or both principles.
Ask the broker for assistance with this directly. It sounds like you have a contract; I hope you have copies of everything.
0 votes Thank Flag Link Fri Dec 10, 2010
Yes I do know a very good attorney, you can call me for the phone # and name. 602-403-7717
0 votes Thank Flag Link Fri Dec 10, 2010
Thanks for everyone's answer. just try to make some clarification: both party have already signed the addedum: the sales person signed the new addedum and faxed it to us, we signed and faxed back at October. Now (after almost two month) the sales person told us that the new addedum was not approved by his broker and tried to use this excuse to void the signed addedum. I am preparing to seek legal advice, anybody knows where can I get get hold of a good lawer?
Once again, thank you for your help
0 votes Thank Flag Link Thu Dec 9, 2010
Jimmy,
I would start by reviewing your original contract. Is there a clause which requires the builder to offer you a better price based on the prices they offer on other homes. Assuming there isn't, under what basis did the builders salesman create the addendum which you have signed, but the builder now refuses to sign? Take a look at whatever is in writing regarding the "lowest price guarantee" you mentioned.
Any real estate transaction will be governed by what the parties agree to in writing. If they have a written policy to lower the price, you should be able to hold them to it. If your contract and the publically available documents do not support this policy, you'll have a difficult time.
Eventually you may need to seek legal counsel to sort this out, but I would recommend you gather and review all the documentation you can first to simplify the process and obtain the best result. I hope it turns out for you.
0 votes Thank Flag Link Thu Dec 9, 2010
As for any legal rights you may have-- for such rights, it's always best to consult with an attorney who specializes in real estate, have all related documention reviewed and see exactly what options you may have--then go from there.
0 votes Thank Flag Link Thu Dec 9, 2010
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