How to backout from toll brothers contract (for sale, foreclosures)

[Adrian71]

I'm interested to hear how this turns out. My wife works for a homebuilder (not Toll Brothers), and she says that if someone can prove that a serious extenuating circumstance has come up since the customer put down his deposit, her company will generally let the person out of the contract and refund the deposit. It's only when a customer changes his mind for no good reason that they won't refund the deposit. Naturally, they don't like having people back out -- especially now that houses aren't selling -- but they do seem to understand that unexpected things do happen sometimes. So I'm surprised Toll isn't more flexible.

Good luck with everything ...

[kenny34]

here is a thought , you put a deposit on the house in oct. when is the house scheduled to be delivered ? ...chances are the home will not appraise for the agreed sales price. you might be able to get out somehow if that happens.

[Yankeesfan]

The contract you signed with Toll undoubtedly contains a cancellation clause; what does it say about your obligations, the penalties, and any contingencies?

[Cigar56a]

As someone else mentioned, you should consult with an attorney. My guess is that Toll Brothers has every right to keep the deposit -- unless there is some loophole in the contract that would give you an out.

A letter from an attorney could make a difference. At a minimum, Toll Brothers might not come after you for the additional 7.5 percent. You should look at this as a business deal that neither side wants to see go sour. You don't want to lose your $16K, the sales person doesn't want to lose commission, and Toll Brothers doesn't want to put the house/lot back on the market.

So if you still want the house consider working something out with Toll Brothers to give you more time to raise the additional downpayment/deposit. You might try that before turning loose an attorney. Hopefully you used a real estate agent. That person would probably be best suited to work out some kind of compromise short of legal action.

[pa76]

Hi,

I have signed a contract with Toll Brothers and expecting to close the house in Mar 2008.We have already paid Toll a deposit of $60K.I have a current home which is on sale from past 8 months.Pls let me know if anyone knows the option to back out from Toll sales contract .I don't want to hold on to two mortgages.Will I have to pay the fine if my mortgage doesnot get approved.

Thanks
Bob

[marcva]

I had a contract with Toll Brothers in 2001 and had to back out when I lost my job. they were telling me that I had to forfeit my DP ($28k). my property was roughed in, and cabinets were ordered, etc. so I was further along with you.

Circumstances may be very different, so i shouldn't make assurances, but get in touch with Greg Haight at Haight Tremonte Law Firm in Vienna, He helped me recover a good sized chunk of my deposit. there's always the tradeoff of legal fees vs. recovery, but i bet he can get you a chunk back.

He's not cheap, but good legal help rarely is.

[plf86]

typically you can get out if you cant get financing. read your contract. for the other person that may hold two mortgages, hopefully you made purchase contigent on selling your house.

[russells]

call haight tramonte law firm in vienna

[sbh45487]

Folks,
Thanks for the replies to this post. In the contract Toll Brothers does have a clause saying every buyer will have to make an application for pre-qualification with their mortage company, but they don't have to go with them. So they will qualify the buyer for the home purchase unless either of the buyers loose their job or their financial situation change dramatically. In this case Toll will keep the initial deposit and may not sue the buyer to get the remaining deposit.

My financial situation is better and I am going to stay with the contract and buy the home.

[Yankeesfan]

I'm so glad it worked out for you. What a relief that must be.