Can builder cancel my contract without reasons?

Asked by Jason, 75024 Fri Apr 30, 2010

I am building a home, when I report issues to the builder, instead of fixing problems, I am threatened to cancel my contract with my earnest money back. I have spent a lot time and effort, I don't want my contract canceled at this point. Can they really do that with reasons such as "you're too aggressive, we don't want you as our customer"? I signed the contract in 08/09, home pricing is picking up. That is the real reason they want to cancel. They said they can sale the house within days with a higher price.

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Al Casey, Agent, Canton GA, GA
Thu Sep 19, 2013
It depends on your contract. Do you have an agent representing you? Did you have an attorney review your contract? Let me know if I can help.

Al Casey
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Jeff Harper, Agent, Citrus Hills, FL
Fri Jul 23, 2010
Hey Jason,

It sounds like you're in a tough situation. The builder wants to have a happy homeowner who will refer more buyers to the company. You want your home built correctly. What kinds of requests have you made? Are they really that unreasonable? Have you hired a private inspector? If you signed the contract in August of last year, that means it has already taken a year to build the house. You are obviously more patient than many purchasers. Most builders put a clause in their purchase and sale agreements stating that they can cancel at any time for any reason. Check your paperwork. It should be clear.

Best of luck to you,
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Sally English, Agent, Atlanta, GA
Mon May 10, 2010
Many buyers find them selves in your situation because they did not have a broker representing their interests in the writing of the contract. Relying on the builder's broker to represent you leaves you vulnerable to being pushed around by the builder.

At this point, take your contract to an attorney who specializes in real estate law (not family law, not divorce, not labor law....specifically real estate transactions). Pay the attorney a fee to read the contract and asvise you on the best course of action.
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Anna M Brocco, Agent, Williston Park, NY
Fri Apr 30, 2010
What does your contract state as far as cancellation--review the document and make a determination--or consider consulting with an attorney who specializes in real estate and have all documentation reviewed.
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