Expert: Dick Dennis - 2/29/2008

Question
Hello,

My fiance and I fell in love with a home in Pennsylvania through the builder Ryan Homes in Fox Run Estates. We decided we wanted to purchase the home and started a payment plan where we paid in increments to reach the 5% needed to start the ground breaking. My fiance already owns a home here in NJ and put the house on the market. We were approved for the mortgage through the builder's Mortgage company. They approved us on what they called a "worse case scenario" meaning that if we did not sell our current home we would still get a mortgage if we were able to rent it out at the rate they decided ($1500). When we received the approval papers we did not sign them and agree to those terms because the rental amount they came up with was too high for the area and the state of the current market.

Prior to the mortgage approval we signed the contract. We asked the sales agent that if anything came up or if for any reason we were not able to purchase the home would we get out money back. She responded "In all my years of working with Ryan Homes I have never seen them keep someone's deposit. They always give it back because they don't want the bad press." We asked her the same question again after we signed the contract and she would even give us examples of when Ryan Homes refunded deposits. However, we did not get that in writing and now are in contract. After reviewing the contract it had a clause that allowed for verbal statements to be included but "none" was typed there. I was not aware of this. After investing approximately $11,000 we decided we could not afford to purchase the home. Our jobs were not secure and we were financially tapped out and starting to become delinquent on current bills due to paying for the new home. We did not want to but we had to back out of the contract. Ryan Homes will not refund our money. I spoke to the agent that assured us we would get a refund and she said that it was nothing she could do.

Also, Ryan Homes has not started the home. There was no ground breaking and they did not build anything. I know that we are legally responsible for what we signed and agreed to but do you have any advice for recourse? I am not trying to go at this in a threatening way. I want to appeal to them to have mercy on us. That is all of our savings and we really cannot afford to lose all of that money.

Thank you for any advice you can offer.

Answer
You are not trying to go at it in a threatening way? Jewel, what do you think Ryan Homes did? If someone wants to keep my money, to me that is very threatening. Yes, I know women, in general, shy away from contesting. But they have kept your money without giving you value in exchange!

You must learn that you never, never, never ever go into a transaction with a home builder (I don't care who or what he is) without a real estate attorney at your elbow. Absolutely not. Their contracts are notorious for being one-sided.

Also, please remember this old adage in real estate, especially: "If it is not in writing, it was never said." That Ryan agent gets paid from Ryan. What do you think she is going to tell you? The truth that will benefit you?

Now it will cost you a little more to get a good real estate attorney to solve this problem for you. You have just gone through a class of learning in your school of life. Do not back down. The longer you take to solve this, Jewel, the worse it is going to be.

I do wish you well.

Dick Dennis
The Old Problem Solver.