Reasons for 'default'

Asked by Mary, Plano, TX Sun Feb 17, 2013

Can a builder go ahead and build the home all though I ask them not proceed for any reason? Can they proceed on 'good faith agreement'? For example, during the building stage I find that a change in the neighborhood have impact on the value of my home when I sell, so I ask the builder not to continue the building? Will the result be different if I ask them to stop the construction before the foundation is made or after that?

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5
Bruce Lynn, Agent, Coppell, TX
Wed Feb 20, 2013
These are probably a question for an attorney, but normally we would want to refer back to your contract. Do you see a provision for them to stop or start building at your command? Or do you see a provision to cancel the contract for changes in the neighborhood?

Normally once you sign a contract ...you are committed....they are committed. You probably wouldn't want them to come back for example and say...well now the economy is better and we think we could sell it to someone else for more money, so we're giving you your earnest money back and have decided to sell to someone else.

You probably need to refer back to your realtor or attorney to walk you through the contract you've signed and the provisions of it.
1 vote
Brent Rice, Agent, Plano, TX
Sun Feb 17, 2013
Mary, I don't know what else to say.....I am not clear on why you are approaching this situation alone (as it appears you are). Please explain so this forum can better understand why you wish to solicit input but not have expert representation, especially when it won't cost you anything. 

You need a Realtor.

Brent Rice, Trulia Top Recommended Broker (Pro & VIP) 
The Rice Group, Inc.  
Website: http://www.ricegroupinc.com  
214-808-3100 
Brent@RiceGroupInc.com
1 vote
What do you mean by expert representation?
Flag Sun Feb 17, 2013
Melissa Hail…, Agent, Plano, TX
Mon Feb 18, 2013
Mary,
If you have already signed a contract, you should have a real estate attorney review it. They can tell you what your legal rights are...and what the terms of the contract mean.

Good luck!
Melissa

Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
214-418-0180
Melissa.Hailey@ColdwellBanker.com

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0 votes
Maria Gilda…, Agent, Manchester, CT
Mon Feb 18, 2013
If there is a legal binding agreement between you and the builder, you have to seek the expertise of a lawyer.

Best.
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Feb 17, 2013
Mary, they're not going to stop. I think the best outcome you can hope for is that they will return your earnest money when you cancel the transaction, but I think they will keep it as liquidated damages.

When you enter into a contract, you can only leave it under the terms that you agreed to. Since one of the terms probably wasn't, "a change in the neighborhood affecting the resale value of my home," that's not a reason to be able to leave the contract.

Before you do anything else, however, I would call an attorney Tuesday morning, explain why you want to get out of the contract, and let the attorney read the contract so they may best advise you.

All the best,
0 votes
Thank you. As I understand, I can't break from the contract for any reason other than mentioned in the contract. You are helpful.
Flag Mon Feb 18, 2013
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