About Eric Sexton Expertise All aspects of buying and selling homes including: General real estate questions, Contracts, Negotiations, surveys, title work and general questions about mortgages. I CAN NOT GIVE LEGAL ADVICE AND WILL NOT BE ABLE TO ANSWER QUESTIONS WHERE LEGAL ADVICE IS NECESSARY.
Experience
I have been a real estate agent for 6 years and a broker for 2 years.
Organizations National Association of REALTORS and Texas Association of REALTORS.
Expert: Eric Sexton Date: 8/8/2007 Subject: New Home Contract
Question On August 5th, I signed a contract on a new home. We used the builders purchase agreement. It states that construction would not continue without receipt of the approval deposit. The approval deposit is $4,500 was the only amount given to the builder. For personal reasons, I would like to back out of the contract. Can I stop payment on the check which has not been cashed? Would this void the contract? I do not mind loosing the deposit, but I am worry of potential liability.
Any suggestions?
Answer Unzane,
Without seeing the documents, I can only give you a very general response to your question.
In a better housing market, most builders know they will sell the home to the next person that walks in the door. This being said, they would probably not worry about the contract being cancelled but would want the deposit.
In today's market, the builder might have another opinion. They are certainly going to want their deposit. Whether or not they want to pursue specific performance (in order to force you to complete the purchase) is up to the builder and the court.
I would talk to the builder. I had a personal situation that required me to back out of a builder contract. That builder was gracious enough to refund my money and cancel the contract.
Regardless of whether or not you get your money back I would get the builder to give you a release document that basically says the contract has been released.
I would suggest talking to a lawyer if you are concerned about potential future liability.
