Getting out of contract KHOV

[surfingatwork]

Originally Posted by shenane

Wow. That sounds like an awful business practice. They sell someone a house without even knowing if the city will let them build. I think if I were in a business I'd want to see if I could get permits before I start selling to people.

Oh you'd be surprised at some of the things the people in charge of permitting pull. I know someone who spent almost a year trying to get the town to approve the design of their new home. the town did not like the fact that the exterior material was going to be "different" than what is typically found in the town so they (the permitting people) forced the homeowner to change the outside material or else they wouldn't approve the permit.

[K'ledgeBldr]

Originally Posted by shenane

Wow. That sounds like an awful business practice. They sell someone a house without even knowing if the city will let them build. I think if I were in a business I'd want to see if I could get permits before I start selling to people.

Your conception is...
Well, wrong.
KHov builds subdivisions; the planning, guidelines and covenents have already been approved.
There are any number of possibilities for their fiddle-farting around. Someone may have dropped the ball. They could have been waiting on mortgage approval. They may have been negotiating a construction loan. Whatever entity that issues the permits may have dropped the ball.
And the list goes on and on.

b.911us-
I do know the dilemmia about contracts. Here in Atlanta, I used the contract that is from the local home builder's association, and used by most builders. But the big builders insist on using their own (they like to put the hammer down on a buyer). I had a buyer who's agent insisted on using a G.A.R. (Georgia Association of Realtors) contract- she didn't like the HBA contract. I immediately stated, "No". I then offered the buyer a copy of the contract so they could compare the two anyway they so choosed.
They came back two days later and signed. In their own words, they stated that the differences were so small that they couldn't see it becoming a potential problem.
Over the years the only sticking point that comes up time after time is- Binding Arbitration. My answer has allows been the same- it's standard practice today.

[bisous911us]

Shenane,

They had obtained their permits, but had to go and re-apply due to some changes in the code.. which means they start from point 0 again, new blue prints, etc....

As I stated earlier, read all clauses before you give your money!

[Derek ATX]

Originally Posted by bisous911us

Thank you all for the reply.
I was able to get some professional help, and finally the work has started on our new home. Just as a reference, there was no way out of contract just because of the permit issues ;(
Advice: Before you sign, seek a professional attorney's help and make sure to fully understand the clauses.

Thank you all.

These little contract items are the reason why I take out my trusty black pen and start marking through lines in the contract like it's going out of style when I have a buyer purchasing from a builder.

[Nancy-NJ-NY-ME?]

Originally Posted by Derek ATX

These little contract items are the reason why I take out my trusty black pen and start marking through lines in the contract like it's going out of style when I have a buyer purchasing from a builder.

And if you do so, you probably would not be buying a home from KHov. Generally, the buyer has to take their contract pretty much as is or go buy from someone else. KHov is very experienced and sucessful. Oh sure, there are purchasers that have had negative experiences. But, KHov has built all sorts of housing all over NJ for decades. If their methods didn't work, they wouldn't still be in business.

K'ledgeBldr is right on in his analysis of the potential delay.

For the record, no I don't work of KHov. But I do own a KHov-sponsored condo in NY.