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For those of you familiar with earnest monies/deposits on new home construction... is it customary for that to be non-refundable on the day the contract is signed for a spec home already under costruction? I would have thought there would be some time period before it became non-refundable. After all, there is when you build a home from scratch with this company. 21 days. Why do I get a NR addendum?
I think I've got a real bully of a sales person and it's becoming more clear to me why this is the third time a contract has been written on this home. He's proving to be a beast to work with and I'm almost ready to walk away too.
In Las Vegas, the development gives you a cut off date as to when the EM becomes non-refundable. Also, after the CCRs (HOA) papers are delivered to the seller, you have 3 days to back out.
If you haven't signed a sales contract, why would they have your earnest money check? If you don't like the terms of the contract, don't sign them until you change them (a lawyer is a good help here, and an agent can help you understand what's different in the builders contract vs. a state purchase agreement).
Most builders here do require a non-refundable deposit after the 3rd day. But most contracts have an out that allows refund of earnest money - appraisal/loan contingency, and state laws around number of days (CA is 3) you have to cancel after receiving all required disclosures. The builders here give the buyer the stack of disclosures when they sign the contract so that is the beginning of the 3 days.
If you haven't signed a sales contract, why would they have your earnest money check? If you don't like the terms of the contract, don't sign them until you change them (a lawyer is a good help here, and an agent can help you understand what's different in the builders contract vs. a state purchase agreement).
Most builders here do require a non-refundable deposit after the 3rd day. But most contracts have an out that allows refund of earnest money - appraisal/loan contingency, and state laws around number of days (CA is 3) you have to cancel after receiving all required disclosures. The builders here give the buyer the stack of disclosures when they sign the contract so that is the beginning of the 3 days.
Thanks for the advice. No check has been written, no contract signed. I can still walk away, no questions asked.
And if you are not comfortable with the sales agent, ask for someone else. If there is nobody else, ask yourself whether you want to do business with this person. It won't get easier after they have your money and your contract is signed.
And if you are not comfortable with the sales agent, ask for someone else. If there is nobody else, ask yourself whether you want to do business with this person. It won't get easier after they have your money and your contract is signed.
Oh, trust me, that thought has crossed my mind more than once. This agent does nothing to make me believe he cares about having happy customers in the end. He actually used the words "it's been under contract twice before, I can sell it again". Ummm... why isn't it staying under contract? Do you like starting over rather than moving on to the next sale?
I like the house, but won't be begging to buy it. I believe negotiations are heading to a close soon. Only time will tell how it ends.
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