Expert: Dick Dennis - 11/6/2006

Question
I am in a pre-construction contract with a builder in FL for a townhouse.  It has been just over a year and the closing is estimated to be next month.  The contract allows the builder two years to build the unit, so they are with-in their allowed time frame.  My financial situation has changed and I can no longer afford the property, although I am sure that the bank would approve a mortgage.  I want to cancel but when I hinted cancelation to the sales agent she brought up "buyers default" where  my deposit would be forfited.  I can't stomach losing 100% of it.  Is there any way out?

Also, they offered me incentives from the start if I use their lender.  Just recently they served me with an addendum I have not signed yet that basically changes their lender that I have to use in order to obtain those incentives.  I wonder if I can use this "change" to get out of my contract.  Any thoughts?

Answer
Yes, Mike, I would use that addendum as your negotiating point. If the incentives were part of the original contract, and they are wanting to change it, then I would insist on the original lender and the incentives with the original terms or cancel the whole deal.

In negotiating, "he who wants it most, loses." Do they want the sale of the property more than you want to get out of it? You have an opportunity to find out. Otherwise, if they stick to the contract to the letter, you don't have much of a chance of getting your deposit back.

You like to play poker? That's what this game is all about.

I do wish you well.

Dick Dennis