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Old 05-25-2008, 09:43 AM
 
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My parents are looking to retire in NC and they went to look at Amberly. I'm a little concerned however after having reviewed the "Agreement." There are a number of points that don't seem right and it is written very much in favor of the builder.

Has anyone experienced any problems with Del Webb or Pulte?
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Old 05-25-2008, 10:09 AM
 
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Most builder contracts are written "in favor of the builder", but they also take into account their warranties, etc. What in particular concerns you?
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Old 05-25-2008, 10:33 AM
 
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They were told that the home they would be purchasing would be finished in December but the contract states that the company has 24 months to deliver. Also, if a spouse dies prior to completion of the home that Pulte could dissolve the contract and keep the $50K deposit. I am not a lawyer but I had one review it and these are a few of the things he came back with.

Any thoughts?
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Old 05-25-2008, 10:34 AM
 
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Also, there are penalties if you don't want to use Pulte at the mortgage company?
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Old 05-25-2008, 11:08 AM
 
Location: Virginia (again)
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Quote:
Originally Posted by steve346 View Post
Also, there are penalties if you don't want to use Pulte at the mortgage company?
We bought a Pulte home about two years ago and were required to use Pulte Mortgage (which wasn't such a pleasant experience) to get an amount off the home price plus most of our closing costs paid. I was used to dealing with pretty savvy mortgage people and that wasn't my experience with Pulte Mortgage. We refinanced 4 months later at very little cost so for us it was worth dealing with Pulte Mortgage to get the incentive, but it was frustrating.
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Old 05-25-2008, 11:54 AM
 
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Quote:
Originally Posted by steve346 View Post
They were told that the home they would be purchasing would be finished in December but the contract states that the company has 24 months to deliver. Also, if a spouse dies prior to completion of the home that Pulte could dissolve the contract and keep the $50K deposit. I am not a lawyer but I had one review it and these are a few of the things he came back with.

Any thoughts?
As far as the delivery date goes, there are no guarantees in building, so it is pretty impossible to give a firm delivery date. The reason they mention 24 months is so if they have any delays, they are covered. I wouldn't be too concerned in this area, unless they are trying to build on some bad dirt. I'm sure you can find out what the average build time for the other homes are, but that is pretty common. Some builders don't even specify a specific time frame.

As far as the spouse dying clause, I'm thinking maybe it was read incorrectly. I'm thinking that if you wanted to dissolve the contract b/c your spouse died, they could keep the deposit. It's kind of a morbid thing to spell out verbatim, but builder's having a clause that allows them to keep the deposit if you cancel under no fault of theirs is also pretty common. It keeps people from buying homes, and then saying, "sorry, I changed my mind". $50k is a big deposit though. Most big builders don't charge more than 5%.
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Old 05-25-2008, 12:00 PM
 
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Oh yeah, if an Attorney didn't tell you they didn't like someone else's contract, I'd be pretty surprised. You may be able to have a clause or 2 added in however, depending on the specific concern.
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Old 05-25-2008, 12:05 PM
 
Location: Raleigh, NC
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Quote:
Originally Posted by steve346 View Post
They were told that the home they would be purchasing would be finished in December but the contract states that the company has 24 months to deliver. Also, if a spouse dies prior to completion of the home that Pulte could dissolve the contract and keep the $50K deposit. I am not a lawyer but I had one review it and these are a few of the things he came back with.

Any thoughts?
This is very typical for Pulte and typical for most all builders! If the buyer delays the closing, there is a penalty. If the builder delays the closing, its just life! Also, the builder can substitute "like items", such as GE appliances instead of Whirlpool (using these namebrands for example purposes).

If you and your parents had taken a buyer's agent with you, you would feel more comfortable because your agent would have explained what is customary and what is unusual. But you did get an attorney to review it and I commend you for that.

However, Pulte will tell you that their contract is take it or leave it! Been there, done that!!!

I did get them to allow my buyer to use a different mortgage company once when Pulte Mortgage didn't have the particualar loan that my buyer preferred. It was like pulling teeth!

Vicki
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Old 05-25-2008, 12:18 PM
 
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Originally Posted by steve346 View Post
Also, there are penalties if you don't want to use Pulte at the mortgage company?
They can't make you use their mortgage company, that is illegal. Also, the only incentive they can legally tie to their mortgage company is closing costs.
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Old 05-25-2008, 12:32 PM
 
Location: Raleigh, NC
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Originally Posted by coltank View Post
They can't make you use their mortgage company, that is illegal. Also, the only incentive they can legally tie to their mortgage company is closing costs.
Nope, not illegal. Real estate companies in this area have been fighting this for YEARS! Attornies in this area have been debating this for YEARS and yet, they still do it. And its not just Pulte. KB Homes, Drees, Lennar all tie their incentives and closing costs to using their attorney and their mortgage lender.
I speak from experience. I have fought with them many times.

Vicki
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