Home Buying in Houston>Question Details

Denise Mayo-…, Other/Just Looking in Houston, TX

No executed contract from builder yet

Asked by Denise Mayo-walley, Houston, TX Mon Mar 18, 2013

I signed a contract for a new home 1 month ago and made a 2.5% if base price deposit at that time. The remainder was paid 2 weeks later. I have yet to receive an executed contract and have received 'assurance' that it would not hold anything up. Are there any laws governing how much time a builder has to provide an executed contract after accepting a deposit?

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Denise I worked for a big production builder Ryland for awhile and yes it is a publicly traded large corporation and does take some time at corporate to get executed, however a month seems very excessive. Did the sales person sign anywhere and did you get a copy of what you signed when you handed over your money? We would not ever accept any monies unless we had a "yes" from corporate on the contracted sales terms and therefore would constitute a "verbally accepted contract" which is binding in the state of Texas. We could not even type it in our program unless the terms where agreed upon.

Bigger question, did you go with their preferred in house lender?? No lenders can "LOCK" your interest rate until they have a FULLY SIGNED EXECUTED CONTRACT. This could be a big issue for you as nothing can begin and move forward until Title and Lender have this. Good luck to you.
2 votes Thank Flag Link Mon Mar 18, 2013
Before you hire an attorney, and change the nature of your relationship for the rest of the build for the worse, consider that it sounds as if you only fully complied with the deposit requirement 2 weeks ago ("the remainder was paid 2 weeks ago") and the builder is within their usual 2 weeks time frame.

Perhaps a better route (trust me, when you get attorneys involved, it will cost everyone money unnecessarily) is to keep working with and through your realtor, have them set a meeting with your contact at the builder and possibly their supervisor, express your position and concerns and see what their response is. Ask for some type of firm commitment to deliver the signed contract that if not met you would like your deposit back and you can both go your separate ways. I'll bet you'll get your contract in a timely manner and can then begin building your new home.

I would also add that if something happening a matter of days or even a week or two beyond schedule is going to cause you great stress and angst, you might want to consider buying a completed home.
1 vote Thank Flag Link Sun Mar 24, 2013
Were you able to resolve your issue? If so, what was the result?
0 votes Thank Flag Link Mon Jul 28, 2014
Denise, It sounds like you need to communicate with the leadership of the company. It is however not uncommon for the executed contract to take some time however, you should have been given some form of receipt of your deposits which will cover you in lieu of an executed contract. I am a former Homebuilding CEO here in the Houston Area and your welcome to contact me for further assistance. I am here to help.
0 votes Thank Flag Link Thu Mar 21, 2013
Denise, It sounds like you need to communicate with the leadership of the company. It is however not uncommon for the executed contract to take some time however, you should have been given some form of receipt of your deposits which will cover you in lieu of an executed contract. I am a former Homebuilding CEO here in the Houston Area and your welcome to contact me for further assistance. I am here to help.
0 votes Thank Flag Link Thu Mar 21, 2013
While an attorney is advisable in this situation, your REALTOR, needs to take this up the chain of command with the the builder. Hard questions need to be asked and if the answers are unsatisfactory then they should take it up to next level. If your agent is unwilling to make these calls, or is inexperienced in dealing with these situations contact his/her broker and insist on their involvment. If it appears that there was potential fraud,deciet ect involved by either the company or the sales representative on their own, then your attorney needs to jump on it also with the full force of legal powers availableto you. Document all conversations you have had with the builders representative, their superiors, your agent and their broker as your attorney will need that information. In your documentation include any sales information from the builder, any claims of expertise by your agent and whom ever reccomended this builder, especially if it was your agent. Again your attorney will need all of this information plus more. You need to be firm and resolute to protect yourself and your interests.
0 votes Thank Flag Link Wed Mar 20, 2013
If a signed and dated contract is not delivered back to you, you do not have a fully executed and binding contract. I suggest you speak with a Real Estate attorney quickly! Were you working with a Realtor who was representing you? The salesperson working for the Builder is not there to represent you, they work only for the builder. Their "assurance" is meaningless.
0 votes Thank Flag Link Mon Mar 18, 2013
Giving monies without a copy of the executed contract? Yes, speak with a real estate attorney.


Joe Cano - Realtor/Locator
(281) 785-5132
joelocator@att.net
Web Reference: http://joelocator.com
0 votes Thank Flag Link Mon Mar 18, 2013
Hello and thank you for the responses. I am working with an agent an we were told at signing that the signed contract had I be sent to the corporate offices and that it usually takes 2 weeks for them to get an actual executed contract to me. However we signed a month ago and have only been told that not having the contract executed will not slow down the process and hat things will proceed as usual.

I don't want them I try to increase the price of the house with options nor do I believe that should be able to hold onto my funds without an excuted contract.
0 votes Thank Flag Link Mon Mar 18, 2013
I'm assuming that you're not working with an agent ...this shouldn't have happened. The "assurance" is worthless. You need a contract signed by both parties in order for it to be binding. Your next step should be to immediately get in touch with a real estate attorney ... and let your builder know that you're dong so. Best of luck.

Al Geffon
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Mon Mar 18, 2013
Executed contract means both parties signed the document. I am surprised when you signed you did have a copy provided to you. You need confer with an attorney.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

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0 votes Thank Flag Link Mon Mar 18, 2013
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