Home Buying in Little Elm>Question Details

Sarah, Home Buyer in Irving, TX

if I put earnest money down on a house and then a week later, the builder comes back saying they want more money, can they do that?

Asked by Sarah, Irving, TX Fri Apr 2, 2010

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Answers

12
Hi Sarah,

What is the reason the builder is asking you for add'l money? The only time I've seen a builder ask for more money is after the buyers goes to the design gallery and puts upgrades in the home. Depending on the builder, they make you put a certain percentage of the total of amt of upgrades you did. Yes, they can do that. It should be in your contract that you signed.

Make it a Blessed Day!

Tamika Turner, New Homes Specialist
Hendrickson Realty Group
Cell: (972) 697-1178
Fax: (682) 222-1049
Email: Info@NewHomesInDFW.net
Website: http://www.NewHomesInDFW.net
1 vote Thank Flag Link Sat Apr 3, 2010
Hey Sarah,

Short answer, no. the earnest money and the design center deposit are different deposits. If the builder is coming back to you after they have executed the contract and asking for additional "earnest money" they can not require it. They can ask i guess but you have a contract. I used to be a top seller for a couple of home builders. I was never asked to do this. Be willing to walk away.

Hope this helps

http://www.newhomedfw.com
0 votes Thank Flag Link Tue Nov 20, 2012
Hi Sarah,

I'm a New Homes Specialist and would be more than happy to assist you in purchasing your 1st home. I'm terribly sorry that you had a bad experience with your first Realtor. I can email you a list of available inventory homes today if you like. I would just need some basic information (i.e. area(s), price range, # of bdrms/bths). My contact info is below. Feel free to call or email me at your convenience. I look forward to hearing from you soon!

Make it a Blessed Day!

Tamika Turner, New Homes Specialist
Hendrickson Realty Group
Cell: (972) 697-1178
Fax: (682) 222-1049
Email: Info@NewHomesInDFW.net
Website: http://www.NewHomesInDFW.net
0 votes Thank Flag Link Mon Apr 5, 2010
I did have a realtor and she didn't advise me to do anything. She basically just sat there and did absolutely nothing. That is why she is no longer my realtor. So if anyone is interested in working with a first time homebuyer that is truly working for me and not the builder and or the seller, please let me know. I need someone who is aggressive and has great negoiating skills and is a going to try and get me the best deal.
0 votes Thank Flag Link Mon Apr 5, 2010
Sarah,
Hope you are working with a Realtor who is the best person that can give you a good advice for your current situation. If you are not working with a Realtor and have some questions you may need to talk with a Real Estate lawyer.
Good Luck...
Sincerely,
Pelin
http://www.dallashomelist.com
0 votes Thank Flag Link Sun Apr 4, 2010
Did you actually sign a contract or did you just give them a check as a hold. If you didn't sign a contract yet and they have had a price increase, then yes, they can do that and ask for more money. If you already signed the contract, then read it.

To Jerry:
There is no attorney review period in TX. Once you sign a a contract it is binding no matter who reads it later.

Naima
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Fri Apr 2, 2010
Robert answered it right. If you had upgrades or if you missed something in the terms of the contract. Most are assuming you used an agent... I am get the impression - you did not otherwise you would have asked your agent.
0 votes Thank Flag Link Fri Apr 2, 2010
As stated, it really all depends on your contract. 1 question would be if the builder is asking for additional Earnest Money or asking that you pay more for the home? If it's additional Earnest Money, then I would advise you to first ask your Realtor their thoughts then take into consideration how much you want this home and how well protected your Earnest Money is if you still decide to withdraw your contract as a result of any of the contracted terms.
The next question that is important to determine is whether or not you had requested any changes or maybe added an upgrade after the contract was accepted that caused the price change.
In reality, unless stated otherwise, an executed contract means all parties have agreed to the terms of the contract as written and the builder "should" not be able to change the price. Again, each situation is different and it is important to understand without the actual contract, it is impossible for anyone to tell you whether or not this action is permitted.
0 votes Thank Flag Link Fri Apr 2, 2010
What's the contract say?
What's your realtor say?
This doesn't sound right, but was it signed by the builder?
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Apr 2, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
What is your agent advising--a lot will depend on your contract--review the document and make a determination--and or consult with an attorney as well.
0 votes Thank Flag Link Fri Apr 2, 2010
It depends what is in your contract. Normally, a check is given for say 2%, and in the contract it states "to be increased to 5% by xx/xx/2010. You normally have a 5 day attorney review to change the contract and after the 5 days has expired, the sellers attorney would have to request additonal funds and your attorney would have to accept. Has your attorney reviewed your contract?
0 votes Thank Flag Link Fri Apr 2, 2010
The amount of earnest money and the timing for putting down more is in the earnest money contract.
0 votes Thank Flag Link Fri Apr 2, 2010
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