Buying or Selling a Home/New Home Construction

Advertisement

Expert: - 10/4/2007


Question
Hello, I live in Pueblo, CO. I signed a purchase agreement with a home builder here in Pueblo. I gave him a personal check for $1,500.00 on May 25, 2007. He did not complete the house when he said it would be done (although small print in the contract states he has up to one year to complete the home). He asked for a two week extension not in writing and two weeks later he asked for another two week extension not in writing. With six days util closing many unfinished and time consuming things to do remained.

He never cashed my earnest deposit check written on May 25, 2007. I cancelled the check on: 9/21/07. He's claiming I breeched the contract.

My question is: doesn't a builder or realtor have to put an earnest deposit check into an escrow account within so many days of receiving it?

Thanks for your help in this matter.

Answer
Hi Jess,
Builders contracts are a different breed.  All of them are different and they are heavily slanted towards the builder, as you are unfortunately finding out.
I can tell you that for a typical real estate transaction between 2 represented buyers in CO.  The selling party/broker has 3 days to deposit the earnest money into and escrow account.  

Again, you signed a builders contract and they don't have to play by all of the rules we do sometimes, so really read that contract thoroughly about the earnest money.

Hope that helps, and best of luck getting your dispute resolved.

Buying or Selling a Home

All Answers

Answers by Expert:

Ask Experts

Volunteer

Jay Denit

Expertise

I'm a Real Estate Broker/Loan Consultant in the state of Colorado. We have a separate foreclosure investing company, so I'm more than willing to answer any Colorado foreclosure questions for both the home owner and investor. I have sold bank owned homes all across the country for all of the big banks. I'd be happy to answer any questions about buying or selling residential homes and specialize in luxury estates. Furthermore, I have some experience in land acquisition and development and know a touch about water rights. We are a licensed lender in most states, so I can answer general questions about all types of mortgages.

Experience

My experience is really anything that has to do with real estate. From buying and selling to investing and foreclosure, I’ve done it all. Being able to handle the acquisition and financing under one roof gives me the intimate knowledge of all facets of property conveyance. My foreclosure/bank owned property (REO) experience gives me the problem solving mindset to always find a solution.

Organizations
BARA- Boulder Association of Realtors NAR- National Association of Realtors CAR- Colorado Association of Realtors

Education/Credentials
Xavier University-- BSBA Finance Colorado State University-- Professional Certificate in Project Management

©2012 About.com, a part of The New York Times Company. All rights reserved.