Need to get out of contract with DR Horton-help (sales, real estate)

[Tilldill]

Anyone have experience on getting out of a contract with DR Horton or any other large builder? we put down 1000 down earnest money. we have not been per approved or even started building yet. We want to pull out because we have now found out bad things from others living in the community. Bad plumbing, no one showing up for repairs and not receiving the upgrades in their home. Almost all of the residence said they wouldnt bulid with them again. Can the contact be terminated and should I get an agent to help me with that process. Anyone with this experience?

[pinipig523]

I don't know about if the region matters, but my parents went with DR Horton twice (current and prior home) and they enjoyed the process. No issues from them.

[jennifw]

What does your contract say? Do you just lose the $1000?

[loves2read]

you did not use a realtor did you? too late at this point for a realtor to help you
you are likely to need attorney...

you probably have little recourse but to walk away, give up the 1K, and hope they don't take you to court and sue for performance...depending on the language of the contract YOU can be at fault for failing to continue with the building process...

there are others with more insight into RE law--but you really made a bad decision w/o due investigation of the situation--and you might have to pay to walk away

[Tilldill]

Thanks for the info everyone. We wanted to use an agent and they told us they didn't work with them. Another lie by sales agent

[TurtleCreek80]

Originally Posted by Tilldill

Thanks for the info everyone. We wanted to use an agent and they told us they didn't work with them. Another lie by sales agent

You need a real estate attorney Moderator cut: see comment, to find out what the best course of action is so you can (hopefully) avoid being sued for breach of contract.

Get a GOOD r/e attorney, too. You've already opened yourself up a whole mess of problems by not being represented by a professional; don't try to cut any other corners.

[jbiggs]

Originally Posted by Tilldill

Thanks for the info everyone. We wanted to use an agent and they told us they didn't work with them. Another lie by sales agent

Ooops! Somebody screwed the pooch by not using representation. All contracts will provide a right of rescission time period where you can back out with no penalties. You should read your contract closely and see what it says. Now as pointed out you need to speak with an attorney and you should do it quickly. Some builders might pay you an incentive to waive your right of rescission period which is legal if you fall for it. Some times they promise you $Thousands in upgrades which are really nothing more than you would have gotten in the first place.

As for the sales agents job it is what they do to sucker people in. The agent is most likely a licensed real estate salesperson and you can file a complaint with their licensing board TREC - Home Page . Sometimes just making the complaint lights a fire under their arse to do the honest thing. After all they don't want to lose their license.

DR Horton is not unlike any other cookie cutter builder. You can get an acceptable home in one development and a POS in the same development. It just depends on the subs used for your home and if the building supervisor starts PMS'ing during your build.

Just out of curiosity what development is it in? DR Horton has been invading a lot of developments around DFW in the past year or so. They have also been backing out of developments when the local city gets on their case too much.

[loves2read]

Moderator cut: orphaned
Agree that if the OP is as clueless about reading a contract as it seems, best bet is find an attorney--
of course that is going to cost 1K or more as well

[MckinneyOwnr]

I second getting a lawyer involved, it doesn't sound like you really read the contract too closely or understand what you've signed. That said, I've heard plenty of stories of people who have walked away from a home and even though they may have been entitled to their earnest money, they rarely collect it unless the courts get involved, which typically isn't worth it financially.

Most real estate contracts like this that I've seen also require you to submit anything in writing, and verbally saying you want out means absolutely nothing.

[skids929]

For any re-locators reading this thread..The topic here is reason # 5015 to rent before you buy when first moving to the area. It would be easy to fall into this trap before you had a comprehensive knowledge of the area/neighborhood/builders.

To the OP, I uphold the recommendation for a RE attorney. I would pay the hour or two to get the consult to see what your rights are here.