Home Buying in Murphy>Question Details

Mary, Both Buyer and Seller in Plano, TX

Sale of the current home in the Contingency agreement

Asked by Mary, Plano, TX Wed Feb 13, 2013

I signed the contract with a builder (name not mentioned) to build a new home and have a contingency addendum for the sale of my current home. When I signed the contract with the builder, my current home where I reside was under the contract. During the option period the buyer of my current home backed off. I was very uncertain about my home being sold. So, I decided to terminate the contract with the builder and wait for a while until I sell my current home for a good price. The builder says I have until the sheet rock stage to decide whether to proceed or not.

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Not sure what the question is, but sounds like you do not have a contract with the builder at this point.

What does your realtor say? I'd be asking them for advice as that's what you are paying for.

Builder may have decided to keep home as inventory, hoping you'd come back or at some point may sell it to someone else, and put in their own selections for colors and not yours.

Let us know what your question is and maybe we can better answer.

Check prices at http://www.metroplexhomesalesinfo.com/community/area/Plano/
1 vote Thank Flag Link Wed Feb 13, 2013
Please see all the answers under my name. I could not write the whole story in a single post.
Flag Thu Feb 14, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
The Realtor that is helping you sell your current home should be a good resource for you. In fact, I hope that you used that agent to help you negotiate the purchase of the new construction. As a buyer, it's in your best interest to have someone represent you (because the builder's representative only looks out for the builder's best interests).

From your comment below, it sounds like you can get up to 50% of your deposit back if you terminate between now and sheetrock. If you wait to terminate until after sheetrock it sounds like you won't get any money back. Please know that I am only basing this on what you wrote below, and without seeing the full contract or being an attorney - I can't give you any legal advice.

If you are only going to get 50% of your money back, I would probably wait to terminate until the last minute....that way you have time to find a new buyer for your current home. If you find a new buyer for your home, then you can move forward with building your dream home and not worry about any refunds.

Definitely visit with your agent about it. If you don't have a Realtor, now might be a good time to hire one to help you sell your current home. It's a seller's market in the Plano area and your home will probably sell very quickly with the assistance of a Realtor.

If you are not already working with a Realtor, and you would like to know about our seller services, please call/text/email me and I will send you more information about how we can help you get your home sold.

Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors

1 vote Thank Flag Link Wed Feb 13, 2013
What if I sell my home before the sheet rock time and don't want to proceed with the builder? Do I have a reason to terminate the contract at that time because my current home is already sold before that time?
Flag Wed Feb 13, 2013
No professional can render any opinion for fact we don't have the entire executed sales agreement read the terms and conditions for home you want to purchase.

Recommend contact an attorney

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer

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0 votes Thank Flag Link Wed Feb 13, 2013
By the way, I do appreciate the level of detail that yiu provided. I know the answer to yiur question. Just give me a call, or send me your contact info by email or text.

Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc. 
Website: http://www.ricegroupinc.com
0 votes Thank Flag Link Wed Feb 13, 2013

I assume you do not have a Realtor representing you? These questions are most appropriately answered by someone who represents you. Even when buying a newly constructed home from a builder, every buyer needs a Realtor. By the way, a commission is already figured into the price....

I hate to seem "preachy"and evasive, but ask the builder if it's not too late to engage a Realtor. Or tell them that you are not moving forward without one. And then call me or one of us here that you think is a good fit based on our experience, etc.

I can tell you that I would be glad to assist with both the sale and purchase of your homes and even give you a cash credit upon closing.

I routinely represent both sellers whom are also buyers, in Plano (where I have lived for 12 yrs).

Brent Rice, Trulia Top Recommended Broker (Pro & VIP) 
The Rice Group, Inc. 
Website: http://www.ricegroupinc.com 
0 votes Thank Flag Link Wed Feb 13, 2013
All my questions are surrounding the termination of the contract and getting the 100% earnest money.

1. Based on the contract, should I wait until sheet rock stage to decide whether to proceed or not? Am I legally bound to the contract to proceed with the builder until the sheetrock stage? Right now, we are in the first step of the process which is choosing the materials and is only less than a month into the contract. I don't know when they will start the sheet rock - may be two months from now or five months from now which is under the Builder's control.

2. Can I terminate this contract only if I don't sell my current home? Can't I break the contract of any other reason like (1) change in the family situation (2) reasons like the builder's reputation that I have found out now is not good (3) location information which I did not know at that time which I don't like now (4) another home from a different builder with a floor plan and for a better price?

3. Am I legally bound to buy this home if the Builder does not find any reasons to terminate? Should I get a lawyer in such a situation to terminate the contract?
0 votes Thank Flag Link Wed Feb 13, 2013
I looked at the contract and it says:

"Purchaser will pursue the sale of current home at _____________. If Purchaser's current home is not sold by sheetrock stage, Purchaser may provide Seller written notice prior to sheetrock to terminate the Agreement. Purchaser understands they will forfeit one half (1/2) of the required deposit, plus the cost of any options already installed. Once the home passes sheetrock stage, Purchaser hereby agrees that no deposit money nor option money will be refunded if the home does not close due to Purchaser's default."
0 votes Thank Flag Link Wed Feb 13, 2013
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