AboutRick Stone, Broker/Owner, CRS, ABR, GRI Expertise I am a licensed Real Estate Broker serving Virginia, Washington, D.C & the areas surrounding Cabo san Lucas, Mexico. I am currently involved in building homes in the Cabo area. I have served as chairperson for my HOA Architectural Review Board. I will do my best to respond to any related questions regarding the buying or selling of real estate.
Questions can be regarding your search in finding a great agent to work with and what to do with a bad one. Real estate agency, contract issues, home inspections, real estate investing and property disclosure issues. I'll do my best and wave my magic wand to get you out of problems concerning your builder or be happy to tell you what you should had known before you wrote the contract or before you do. How do you buy or sell raw land, tear down an old house and rebuild new, and all you should know about waterfront properties are good questions too.
I will say this, I am candid with my reposnces and do my very best to offer advice that may teach but there are cases where if as Forrest Gump's mother would say, "stupid is what stupid does" or something like that, I may have to scold you to get my point across.
Experience I'm proud to hold the following professional real estate designations: CRB, Council of Real Estate Brokers - CRS, Certified Residential Specialist - GRI, Graduate of the Realtors Institute and ABR, Accredited Buyers Representative. I am a member of the National Association of REALTORS, Mexican Association of REALTORS (AMPI) and the Los Cabos MLS. I own and sell waterfront properties so I can address issues related to living on the water. I represented a custom builder for many years and have sold hundreds of new homes so, fire away with your questions regarding new home construction.
I'll do my best to be straight up and help if I can or I will tell you if I can not and who to contact in that event. I am not an attorney and can not provide legal advice. If you are having a dispute with a seller or buyer who has failed to live up to the contract terms, or a tenant that is always late with paying their rent, while I may not be able to help, I may be able to offer suggestions and then who else to contact.
Please, please, please, understand that real estate law, agency and tenant rights / law differs from state to state and so I will best serve those who have problems in Virginia, Washington DC or Mexico. While I am happy to answer all questions from any one who writes me and offer advice, please understnad that in some cases, I may not be able to help you at all. Please tell me what state your property is located in, if you have a problem with commissions, discharging agents, getting out of a contract, do us both a favor, first look in your documents for the language therein and when you write me, please say that you have re-read that wording.
If you have not yet hired your agent, write me for essential questions you should ask first and save yourself a lot of time, agony, misery and possible financial unhappiness.
Question Rick - I've got a condo under contract at The Dumont in DC, which (as I am sure you have heard) is now several months late on delivery and counting. Just wondering at what point - if any - does a buyer have some recourse to either back out of or re-negotiate a contract when delivery drags on. Of course, timing of delivery is not in the contract. But I would argue that the communicated timing of delivery was one of the decision factors leading to my purchase. And of more concern, the interest rate climate is much less favorable than it was when I signed...at this point, each week that passes is effectively costing me more money. Is there any leverage point here in re-negotiating? Thanks,
Mike
Answer Hola Mike,
You ask a question I am sorry to say, I've answered the most here and I can't say I have been of any help to those others.
In most Developers contracts, there is a time frame indicated from one or two years from contract to deliver that home. Actual closing dates are estimated in their contracts and usually said to be strived for but not exactly what to set your watch by. They cite justifiable reasons for delay such as labor disputes, material shortages, Acts of GOD and so on that allow them time beyond the expected date with nothing for the Buyer to do but to wait.
Financing is considered a mute point usually after 60 days in which time Developers give buyers to secure it and provide them with proof thereof. They operate under the premise that Buyers understand the inherent risk in buying into the future and have carefully thought out if any changes in the interest rate you initially heard at the time of application, would cause you any hardship if it were to later increase.
To be fair, the Developer is just as concerned in falling behind as you. They tie up, borrow huge sums of money to purchase the land, complete engineering, obtain permits, buy materials, pay for labor, marketing, the dreaded, greedy and not always completely competent and fully appreciative of your predicament, sales persons, yada, yada which cost them dearly every single day.
When they run behind, it cuts into their profit too not to mention, all their customers, you and the bankers, are giving them little reason to sleep well at night.
Sometimes, in markets long past, when buyers were lined up at the gate and bidding on available units, Developers would happily release you to only sell that same unit at a higher price to the next guy in line. Those days as we sadly know, and why I am now building homes in wonderful Cabo San Lucas, are long gone up there and Developers do not enjoy that long line at there door of anxious Buyers.
In some cases where a company transfer, military call up, family emergency and finanical hardship not due in any part of the employees doing, may get you off the hook. There may be a release of both you and your paid monies pending the securing of another buyer. The release of your deposit may occur in full, in part or not at all - it's subject to forces only they and possibly a Jedi Master may only understand.
I presume you have carefully reviewed your purchase documents and that living in DC has afforded you friendship of at least one attroney who has offered possible scenerios. I am not a legal person and can not give any advice to that fact or really get involved after a contract has been ratified by the parties.
I try to offer advice as in which your case, I am limited to do. If I wer you, I would ensure I understand the language in the contract, having someone more familliar with 'legal speak' if it were. Finding no remedy in that, myy next visit would be to the sales office to understand if they have a list of interested buyers who did not like what was available at the time of their visit and perhaps yours is one that they would be. I would also want to understand the number of remaining unsold units to judge the odds of by you doing some outside advertising might draw someone in to take your place. Ensure if you take that route that your contract does not prohibit you from doing so.
Pending that, try to arrange a sit down with the Developer and visit yoru options - there is no sayingn what they will or will not do IF, you are peacefull and do not charge in breathing fire. I hope you understand my meaning.
Outside of that, I really can't offer much more and I am sorry and wish you well.
