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Money A2Z

Some forums can only be seen by registered members. We entered into a purchase agreement to buy a spec home with a national builder.

Earnest Money | Legal FAQs for REALTORS® | For Texas REALTORS® | Texas Association of REALTORS

There are couple things we don't feel comfortable after the inspection and we decide to back out of the deal I've signed cancellation agreement , but the builder is not willing to give back our earnest money for no reason, per the regional sales manager. Without no choice, we reached a compromise with the builder that if they can fix those problems we'll still consider buying the house basically by signing a new contract on the same property.

When we ask about the earnest money, the sales manager said he can make it flexible so to transfer it under the new contract. We demand him to return our earnest money back first and then if we are going to sign the new contract we'll give the earnest money again, which makes sense to me since the old contract was scrapped.

Is the builder allowed to do it that way or they just try to trick us again? I feel I totally lose trust in them now. Take your contract to a real estate attorney in your state. It depends on what was written in your contract and the laws of your state. You need to have your contract reviewed by a lawyer.

Builders are not willing to give back money that isn't theirs even if you exit via a contractual out. Legal action should make the builder more interested in cooperating with you. Don't feel forced into taking this property.

The builder is going to want to rush you along and put you under pressure. I know with my contract I don't even need to specify a reason as to why I used the inspection to back out, and the money would be refunded to me.

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I don't know how yours is, but the contract is the decision maker not a builder objecting to your reason. Originally Posted by BigDragon.

Originally Posted by liudapaul. My buyer agent told me it wouldn't be of much help since the builder's contract is always in favor of itself. Originally Posted by chet everett.

A "single sided" contract is never enforceable, which is EXACTLY why it makes sense to at least "run the contract by" an attorney in deals that are not routine. Worst case scenario you at least have a chance to see how despicable the builder is and can decide if that is the kind of development you want to move into.

Best case your attorney writes riders that shift power to a better balance. In my experience agents who do not think attorney review is helpful are really trying to keep their clients in the dark. The standard MLS approved contract forms in my neck of the woods ARE fair to both parties and RARELY need much added for NORMAL transactions.

Builders DO NOT use these, and that is when attorney is MOST needed! Please register to post and access all features of our very popular forum. It is free and quick. Additional giveaways are planned. Detailed information about all U. Posting Quick Reply - Please Wait. Search this Thread Advanced Search. Similar Threads Earnest money deposit: All times are GMT Transfer of earnest money??? View detailed profile Advanced or search site with.

Baltimore, MD posts, read , times Reputation: Originally Posted by BigDragon You need to have your contract reviewed by a lawyer. Originally Posted by liudapaul yeah, that's what I didn't do and really regret it now. Originally Posted by chet everett A "single sided" contract is never enforceable, which is EXACTLY why it makes sense to at least "run the contract by" an attorney in deals that are not routine.