Aboutliznarr Expertise I can answer questions relating to the purchase and/or sale of residential homes and land, including what a really good agent should be expected to do and/or not do; where to turn when problems occur; and questions regarding disclosure. I`m a Licensed Realtor in the Southeast since 1984 with designations of Broker, GRI, CRS, and CBR (Certified Buyer Representative). Current active and Life Member of Million Dollar Club, Certified by State Real Estate Commission to teach Pre-Licensing and Continuing Education courses, specializing in Agency. Currently serving on Grievance and Professional Standards Committees, and Education Committee in past.
Question I have a contract with D R Horton that was signed on 29 Dec 2005. I met with their lender on 4 Jan 2006 and I gave them all the information they needed. I left messages with the mortgage company to see if there was anything else that needed to be done and got no return call. The construction was delayed over a year from the completion date (Sept 2006) with no real explanation from the sales office. Around Apr 2006, I was informed that 6 other buildings were going to be built before mine and again with no explanation of why. On several occasions I have tried to get some answers from the sales office and the corporate office with no reason why and at one point the sales office threatened to call the police to remove us when we were asking too many questions. So on Sept 2007, I tried to initiate the cancellation clause in the contract to get my ernest money back. They wrote me back saying that I didnt satisfy the preconditions of the contract by not getting a commitment letter within 45 days. This is my first home purchase and I have very little knowledge of home purchase and thought I was doing everything that I needed to do. I consulted a lawyer and I am told that I haev very little leverage to do anything. I need some advice on what to do.
Answer Hi Phillip,
Sorry to hear of your problem with DR Horton. My blood literally boils when I hear stories like this, and there is no room in the real estate business for companies who do business like this.
Unless you were threatening someone at the sales office or otherwise boisterous and out of line, that’s pretty extreme to threaten to call the police because … ‘you were asking too many questions.’
While I have not seen your Contract of Sale and certainly do not know all the facts in your case, I am responding generally based on facts you presented to me and also rules that contract law might relate to as far as noticing you of default.
If there are ambiguities in your Contract, or if something is simply not addressed at all, Courts have ruled in the past AGAINST the person/company who drew up the Contract. In your case, this would be DR Horton.
I can tell you for certain that most builders have their Contracts drawn up in such a way that a Buyer might feel he has no where to go, but many times that is just not the case. In addition, a builder’s contract has absolutely nothing in it for your protection, whereas a Contract written on a Realtor-approved contract will have wording that is generally fair to BOTH Buyer and Seller.
I disagree with what the lawyer told you -- there’s probably just not enough money in your case for him to take it on. You need a strong, aggressive Realtor who knows the business inside and out to go to bat for you.
First of all, I hope that you have some documentation and/or copies of what you provided to the DR Horton lender on your 1-4-06 meeting. Ditto for dates you called the lender, left messages, etc., with no return calls; and also notes of your conversation of who you spoke with around April of 2006 when you were told six other buildings would be built before yours.
I would make the argument that around April of 2006 when you were told by DR Horton that six other homes would be built before yours, DR Horton was acting and moving forward in a manner, leading you to believe that they intended to go forward with the Contract and build your home.
To justify their position, you should have been told at that time that you had not timely satisfied their requirements. Had DR Horton notified you at any time prior to your requesting a refund of your earnest money that you had not satisfied the preconditions of the contract, you would have (I am sure) immediately taken steps to try and recover your earnest money.
The fact remains that you were DENIED that opportunity when DR Horton NEVER notified you of any breach: First, shortly after the 45-day period they are now citing, and second, again in April of 2006 when no mention of this was made when you were told six buildings were going up before yours.
Further, with DR Horton saying that you did not satisfy the preconditions of your contract by not getting a commitment letter within 45 days FROM THEIR LENDER, you should have received a rejection letter FROM THEIR LENDER.
Did you have an agent representing you, or did you deal strictly with the DR Horton agent? If you did not have an agent representing YOU, did the DR Horton agent give you WRITTEN notice of who he/she was representing? If not, the DR Horton agent probably breached real estate law of your state by not informing you of who they were representing.
If you had an agent representing you, he/she has failed you miserably if there has been no effort on his/her part made to help you see this to a conclusion—one way or the other. If you did have your own agent representing you -- and that agent has not tried to assist you in recovering your money -- you probably have grounds to file complaints against him/her and his/her Broker-in-Charge.
The one thing that a Real Estate Commission does not tolerate is a company, pardon my French, screwing over someone’s money – especially a first-time home buyer.
If you signed a contract on December 29, 2005, and DR Horton expected a commitment letter within 45 days; DR Horton should have notified you immediately after that period of time that they planned to not return your earnest money, and that you had breached the Contract.
For starters, I would send the Broker-in-Charge of DR Horton a certified letter demanding your earnest money back, stating in your letter some or all of the reasoning I am giving you. Send a copy to DR Horton’s corporate office.
Give them a deadline of, say, ten days from the date of your letter to refund your earnest money in full. Let them know if they do not refund your earnest money in full by that date, you plan to file a formal complaint with the Real Estate Commission, Consumer Affairs, Better Business Bureau, and possibly file a grievance with the local Realtor Association (if the BIC is a member of one), and any other organizations you can think of to report them to.
If all the above fail, I would suggest going before a local Magistrate or Small Claims Court where you can represent yourself and not have to hire a lawyer. You would probably have to pay a filing fee, but if you were the prevailing party in such an action, I believe you could also ask for all your legal expenses to be reimbursed by DR Horton.
Write me back and let me know your outcome.
I hope the above is all helpful and points you in a direction you have not yet gone. Good luck to you, and write again if you have additional questions.
