Home Buying in 78261>Question Details

Bolo, Home Buyer in 78261

Our builder just cancelled our contract because of wrong info they gave us. What rights do we have?

Asked by Bolo, 78261 Thu Oct 13, 2011

We purchased a home on a lot that we thought was on a 1/2 acre.Sales consultant told us that it was.We later found out it was not.We decided to build anyway. Everything was set in motion for our pre-construction meeting and then they called us a few days before the meeting and said that it was in their best interest to move forward and that were going to cancel the contract. We already pulled out money from an IRA that we had to pay for incentives on the home. What rights if any do we have?

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Answers

9
You can do a couple of things...

1 - Consult a Real Estate Attorney - Have them review your agreement with the builder. You will find however, in most cases, the builder has the right to pull out of the contract, and they probably exercised their option to do so... But, it never hurts to have someone take a look and evaluate the whole story.

2 - At very least, any monies you have paid to the builder need to come back to your pocket. If they refuse to refund you the money or provide what you have paid for... see number 1

3 - No problem... Time to find another builder. Grab the plans, and let's start talking with various builders out there to see who will give you the best deal for the finish-out you are looking for... If you need help with that... I have a whole list of AMAZING builders that will build on your lot, and you will love the home when they are done.

I have seen this happen 3 times THIS YEAR ALONE!!! And in all 3 cases, the builder's contract protected them very well, and allowed them to pull out of a project at their discretion. In 2 out of the 3 cases, we simply found another builder, and moved on. In the other case, the lady had actually paid the builder, and the builder was not wanting to refund the money or provide the services that had been paid for… I have a feeling, that one will be in a court room pretty soon. One must be careful which builder one chooses…

Honestly… in the real world… be mad at the builder for pulling out… get your money back… and let’s go find you a better builder… Its easier, less stress, and unless there is more to the story… will save you a lot of money on legal fees. Just my opinion… But again… a phone call to a licensed real estate attorney may not be a bad move, if anything just to know what options you have.

Hope that helps

Jason C Campbell
Keller Williams Realty
210-389-5266
http://www.SAHomeExpert.com
1 vote Thank Flag Link Fri Oct 14, 2011
Sorry that this has happened to you. Sounds like you did not have a Realtor representing you?If you were not represented by a Realtor I would be happy to hear more information and give you my advice. I do work in the area feel free to call me.
1 vote Thank Flag Link Fri Oct 14, 2011
First, thank you to all who answered! You are all amazing! Yes, we did/do have a Realtor representing us in this matter. All of your information helps us out. Thank you again!
0 votes Thank Flag Link Fri Oct 14, 2011
Go get a lawyer... Free advise from realtors who are not allowed to give you legal advise will not help you in any way.

Now my NON LEGAL advise... go use that money from IRA and money they refunded to you ( I assume they refunded money since there was no home built) and go find yourself a new home. Don't let your emotions take the best of you. This time DO hire a Realtor, more than likely their services (as long as you make sure the builder pays them) will be free to you. It will cost you less time, headaches and money to just move on and find a better deal. There are plenty out there.

Feel free to contact me if you have any other questions.

German Perez
Keller Williams Realty
210.392.4682
0 votes Thank Flag Link Fri Oct 14, 2011
Wow, that's strange.... sorry to hear about that.
I'm shocked the builder does not want to build you a house.
I sure wouldn't want to try to force the issue with someone who does not want to do business with me.

What does your realtor say? Please tell me you have one representing you.

Hopefully you can find another builder to help you. If you don't have a realtor yet, let's get you connected with one who will be in your corner fighting for your rights.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Oct 14, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I would contact a real estate attorney. You may be able to sue for specific performance.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Fri Oct 14, 2011
As for any legal rights you may have, do consult with an attorney who specializes in estate, have all related paperwork reviewed, see exactly what options you may have...
0 votes Thank Flag Link Fri Oct 14, 2011
Most contracts do not have a right to cancel because of the actions or mistakes of the party trying to get out. I would ask your agent to have their company's attorney look over the contract (assuming you had your own agent and you probably did not). Or hire your own attorney--get one who specializes in residential real estate disputes. Maybe try calling your realtor associatino to see who they know of (an arbitrator they use). Sorry for your problems, It is imperative that you take your own agent with you the first time you visit a builder's development.
0 votes Thank Flag Link Fri Oct 14, 2011
Hi Bolo.

This is a most unfortunate and disappointing situation....

Builders like everyone else are capable of making mistakes....it's human nature. Unfortunately, they usually cover their mistakes very well in their contract that you likely signed. With this said, the best source for accurate information is to review this document closely to identify what is covered and what is not.

Additionally, you should make it very clear in writing(registered mail) that you are very disappointed with their service and inability to perform to what they had agree and that you are considering your options that include seeking legal counsel. Sometimes by letting people know that you aren't going to "allow them to run you over", can make a difference.

Good luck,

Bill
0 votes Thank Flag Link Fri Oct 14, 2011
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