Need Advise - Cancelling Toll Brothers Contract in NJ (Burlington: sales, real estate market) - New Jersey - City-Data Forum

Jalwa · 02-25-2008, 09:53 AM

Hello All: I need your advise. I had to cancel my contract with Toll Brothers due to the serious downturn in the real estate market in NJ. My home has been on sales for the past 9 months and I have no offers. I had to cancel my TB contract. I have already paid TB $60K as a deposit for my downpayment and options. Additionally I now found out that they made me sign a promisory note for $35K at the time my contract was signed. My attorney never reviewed the promisory note and finds this practise very coersive. TB has retained all my deposit and has now lowered the price of the house to $60K below my sale price. They have it on the market as a Quick Delivery home at a price below what it offers new contruction homes. If the house sells for a price lower than this new discounted price, can they come after me for additional damages? I would appreciate your advise. ThankYou

BobKovacs · 02-25-2008, 10:24 AM

Did you sign a contract contingent upon the sale of your existing house? If so, there's no issue- if not, you're screwed. And as for them "making you" sign a promisory note, was there a gun to your head when you signed it? You say your attorney didn't review it- did you provide it to your attorney to review? It's sounding like you're trying to be seen as the "victim" of the "big bad builder", but I'm thinking there's more to this story- otherwise you'd have your attorney handling it rather than seeking advice in an internet forum.

MoorestownResident · 02-25-2008, 10:31 AM

I recommend firing your attorney, get a new attorney and have him review what you originally signed and what you are on the hook for. Generally you lose your deposit only. But I am not an attorney and don't know what language TB has in its contracts. I also don't know how you didn't know about a $35K promissory note. You might be SOL on that too but I suspect not the reduction in price. These are legal questions. Builders are experiencing high cancellations rates, sounds like they have gotten more aggressive on the deposit monies in the contract as a way to limit risk.

Jalwa · 02-25-2008, 11:02 AM

Quote:

Originally Posted by BobKovacs

Did you sign a contract contingent upon the sale of your existing house? If so, there's no issue- if not, you're screwed. And as for them "making you" sign a promisory note, was there a gun to your head when you signed it? You say your attorney didn't review it- did you provide it to your attorney to review? It's sounding like you're trying to be seen as the "victim" of the "big bad builder", but I'm thinking there's more to this story- otherwise you'd have your attorney handling it rather than seeking advice in an internet forum.

My attorney is handling this. I am afraid I did not sign the TB contract contingent on the the sale of my house. I have resigned to the loss on my deposit. TB never provided my attorney a copy of the promisory note. I did not know of it either. I signed a lot of papers and TB sent them to my attorney during the attorney review phase. They did not send him a copy of the promisory note.

SeeSaw · 02-25-2008, 05:34 PM

Why didn't your house sell? How much and where is it?

patti47 · 04-15-2008, 12:58 PM

Did the builder come back after you for the remaining 35k?.Did you get back the deposit of 60k?One of my friends is in the same situation as yours
Awaiting for your response.

girl-973-908-732 · 04-15-2008, 01:32 PM

Quote:

Originally Posted by Jalwa

My attorney is handling this. I am afraid I did not sign the TB contract contingent on the the sale of my house. I have resigned to the loss on my deposit. TB never provided my attorney a copy of the promisory note. I did not know of it either. I signed a lot of papers and TB sent them to my attorney during the attorney review phase. They did not send him a copy of the promisory note.

Not that it matters but are you a single female? It just sounds very shady like you're being taken advantage of by both parties.

I agree . . . fire your attorney. If they can come after you legally, of course they will.

patti47 · 04-19-2008, 10:32 PM

my friend is in the same situation as yours.They already have 50k of their deposit.dditinalyy if the come after the promosory ,they will lose another 50k.
Please let me know how it turned out for you.
thanks.

Roselvr · 04-20-2008, 05:05 AM

We also bought new (a house someone else spec'd) but not Toll Brothers.

I heard that we had a contingency, my hubby didn't. Still not sure what our attorney read. I remember them telling us at one time we'd have to remove the contingency.

Getting the house would have fallen through as at some point we did not qualify for a bridge loan after my hubby got injured.

I've done everything I can to get the old house sold. As a seller, I've made my own flyers, advertised on craigslists, told just about everyone I found looking for a house. I was going to advertise on military by owner as well.

I staged the closets with hundreds of dollars of baskets, took new photos with my wide angle lens, got as much feedback as I could from people online.

February came, we found out our house was almost done, dropped the price. We started getting traffic & got low balled by $25k. We talked to our builder, they would not help us out by either lowering the price of the new house or giving us closing money. There was no way we could work with the low ball, so we lowered again.

We had more action, got another offer that was low but not as low. Another couple came through, offered more. So, we've been off the market for a month, in limbo.

What ticked me off is that I watch the market at the new place. I also see them lowering prices, as much as over $60k yet they couldn't help us with under $10k. I have a very bad taste in my mouth, to say the least.

Quote:

Originally Posted by Jalwa

TB has retained all my deposit and has now lowered the price of the house to $60K below my sale price. They have it on the market as a Quick Delivery home at a price below what it offers new contruction homes. If the house sells for a price lower than this new discounted price, can they come after me for additional damages? I would appreciate your advise. ThankYou

I've heard that they can go after you, but since they have your $60k, there is nothing to get.

Get yourself a new attorney if you are not happy.

From what I understand, there are others in this situation where we are going. The original people can now go back and purchase the house for $60k less, so you might want to look into that. Since it would be you still buying, I don't know how that would work.

As I said, talk to an attorney. This also might work to your advantage, you might now be able to lower the price of your old home (since your original new home is lower) to make it appealing to buyers.

Do you mind saying what town you are selling in? I'm in Burlington County, if you are down by me I can give you the name of my attorney.

The loop hole you seem to have is that all of the paperwork was not given to your attorney, like they were hiding something.

Good luck. I know how stressed you are because we were stressed as well wondering if we would lose our deposit money as well although it was no where near what you put down.

If you'd like to DM me, feel free.

patti47 · 04-22-2008, 04:43 PM

My friends are in the same situation as yours.Their closing is in two weeks,..Their current house is not sold.They have sliced down the price to 25k below the market value.Still no luck,.

Now Toll Brothers have informed them that if they don't close the house they would retain the deposit(50k)and come back after the promosory note(51k).

Their attorney has told them that they cannot stop Toll Brothers from doing this,because they have already signed the contract.