Home Buying in Chattanooga>Question Details

Wmrboh, Home Buyer in Palo Alto, CA

What are the consequences of backing out of a purchase agreement AFTER a purchase agreement has been executed and an earnest deposit made?

Asked by Wmrboh, Palo Alto, CA Tue Dec 11, 2012

I signed a purchase contract on a condo in a large multi-phase planned development, and made an earnest deposit of 3%. Subsequently, I found my dream home and purchased it. Wondering if I should just forget about my deposit, or if development companies are somewhat lenient about clients reneging on a deal. The condo hasn't even been constructed yet. Anyone have experience with this sort of scenario?

Help the community by answering this question:

Answers

5
I don't know about Chattanooga, but around Palo Alto, there are ways to negotiate a partial or full refund.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Jan 11, 2013
Earnest money is usually lost in a situation like this but you definately need to read what your contract states what will happen to your earnest money. I would consult a good real estate attorney.
0 votes Thank Flag Link Thu Dec 27, 2012
Read over whatever you signed with the development company and definitely consult with a good real estate attorney.
0 votes Thank Flag Link Tue Dec 11, 2012
You need to consult your attorney. If you are in default , the seller could sue.
0 votes Thank Flag Link Tue Dec 11, 2012
Time to hire an attorney. A Realtor cannot give legal advise
0 votes Thank Flag Link Tue Dec 11, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer