Can the builder force me to buy this home?

Question

I placed a down payment to have a home built. I never even applied for a mortgage or inspection or anything and when I left that particular state the home still wasn't finished. I figured I would lose my down payment which was a few thousand. The builder contacted me two years later stating that the home was finished and said I have to buy the home or else he will sue me. I have since purchased/mortgaged my present home in another state. I cannot afford two homes. Does he have a case?

Answer 1

I was told that all home contracts have a waiver saying that if you cannot get loan approval, you are not required to buy. Follow up on that to start with...with a lawyer. Also, explore the reasonable time factor for this house being built. Was there something about that in the contract. TWO Years! My new home was built in less than 8 months. What took so long? Find that out as well. You really need to get a copy of the contract and find a lawyer.

Answer 2

.   It is a bluff.  The fact that he didn't contact you every week for the last 2 years is proof that he never expected you to complete the sale.  You lose your earnest money.  

If he pesters you, contact judgejudy.com and Judy will roast him on tv.

Answer 3

Get a lawyer; don't try to do this yourself.

Answer 4

first of all, you placed a down payment on a house and probably signed papers showing your intent to buy the home (which is why the builder built the house).   Negligence on your part to back out of the agreement prior to the build.

He does have a case and I would consult an attorney regarding your options.  Even though you do not qualify for another mortgage, you signed an intent prior to your current mortgage to build this house.   He can get damages for lost wages and lost monies invested that the builder put into the house even if you dont buy the house.

Answer 5

He can sue you.  He will also win.

This is what happens when you sign legal contracts, don't use a Realtor nor an attorney, and have no idea of how they work.

You can't claim that you never qualified for the mortgage because you never applied for one.  You will have to show proof that you applied within a reasonable time frame of the signing of the contract.  Obviously, since you never applied for one, you will be unable to produce the proof...whether or not you got an inspection is 100% irrelevant, b/c no bank requires an inspection for financing.

You contracted again to purchase a home when you were STILL under contract with the old one.

He can sue you for EVERY DOLLAR he is out marketing the property to sell to someone else.

Next time, understand that you can't walk away from a legal contract...b/c you would be pitching a fit if he just refused to build it for you after taking your money, now wouldn't you?

PS:  All home contracts DO NOT have a waiver stating if you cannot get financing, you are out of the contract...even if this one did, the OP never applied for a loan, therefore, she cannot claim she was denied financing.

Also, Real Estate Guy needs to know that every builder starts homes differently.  When I used to work for builders they would FREQUENTLY start construction without loan approval...especially when the market was booming b/c if they didn't sell it to the person who originally contracted it, they could sell it to someone else.  You also don't know if she contracted to purchase a custom or a track home that was already started.    Just because this is what your company does (b/c it sounds like you work on-site sales...which is a  very, very limited market of real estate and in some states, doesn't even require a real estate license), doesn't mean everyone does it.

I would also wager, that ANOTHER reason the builder waited two years, is he probably figured he could sell it to someone else too...but since the market dropped, and he can't...he has now went back to her.

And he has that legal right.

Answer 6

Read the contract that you signed at the time you gave him the down payment. If you're not absolutely sure you understand exactly what the contract means, get a lawyer to advise you.

Answer 7

You signed a contract and you must pay him in full.  If you do not pay immediately in full, he can sue you, take your house and all your assets and garnish your wages to pay for this new house plus interest, plus all of his costs of collection & legal fees.  No alternative, no nothing.  Pay up.

You made a huge mistake signing the contract and not cancelling it within the legally allotted time frame.  You must find a way to pay this or it will cost you everything you have and ruin your credit.

Answer 8

Absolutely. This poor guy spent so much of his money on your house. The down payment is nothing compared to what he has spent out of his pockets. Put the house for sale so you can pay the man. It's real bad Karma if you don't.

Answer 9

I'm betting there is more to this story. Your story is that you signed a contract, gave a deposit and that was all.

When we build, the involvement of the buyer is very high.  At the very least, the buyer needs to pick all selections.  

However, it appears from what you have said that that both you and the builder are at fault.  

Didn't the builder continue to follow up?  

We NEVER!!!! start a home without a full loan approval.  However, nightowl is wrong - there is not a financing contingency in every contract.  In fact, our contract states that once the loan has been approved (before construction), the contingency has been met.

From what you are saying, it sounds like you have a out.  I would talk with a lawyer ASAP.

Answer 10

yes you had an obligation when you signedd the papers and gave him the down payment