How to backout from toll brothers contract (sales, real estate) - Northern Virginia - Virginia (VA) - City-Data Forum

sbh45487 · 11-13-2007, 08:42 AM

Folks I signed a contract for a new home with Toll Brothers in Oct 2007 and paid 2.5%, approximately 16K as deposit and now its not been a month yet, I have a family emergency and I had to send some money back home, so wanted to cancel the contract and talk to the Sales person. She said I will have to loose the deposit and also Toll brothers will come after me for upto 7.5%. Is this fair? Its just been a month and they have not even started leveling the surface to built the home, the lot is like a junk yard now and I want to backout and they are saying they will come after me for 7.5%. Is there any suggesstions? I am due to pay another 2.5% deposit in a week.

DavidS827 · 11-13-2007, 10:47 AM

Unfortunately for you, you are most likely not going to get any of your deposit back. As far as Toll is concerned, you signed a contract and you need to either be willing to pay to get out of it, or proceed with the purchase. Having said that, if you used a Realtor and that person has any clout with the builder, you will probably be able to back out and just lose your initial deposit. If you didn't use a Realtor, then you still might have a chance at just losing your initial deposit, but you are going to have a much tougher time doing it.

DavidS827 · 11-13-2007, 11:14 AM

...just a thought...Did you sign off on the HOA docs when you initially wrote your contract? I know some of the new neighborhoods have ready and on site and others don't. If you haven't signed off on them, then you could get out of the contract.

sbh45487 · 11-13-2007, 11:50 AM

David thanks for your reply.. I did sign the HOA docs at the time of contract.

goldenmom7500 · 11-13-2007, 01:43 PM

It sounds like David has some good advice. There is also a website called Free Legal Advice in 100+ Law Topics - Law Attorney - which is a legal advice website with forums, similar to this site. You can post on the real estate forum and see if you get any suggestions.

DavidS827 · 11-13-2007, 02:20 PM

Quote:

Originally Posted by sbh45487

David thanks for your reply.. I did sign the HOA docs at the time of contract.

I'll ask around my office, but Toll has a pretty tight contract. I wish I had better news. Good luck with whatever family issues you have.

sbh45487 · 11-14-2007, 12:11 PM

Thanks David and goldenmon for your advice. I appreciate it.

AnalyzeThis · 11-14-2007, 05:56 PM

If your situation has caused you a financial hardship that would now preclude you from qualifying for the mortgage, then you may be able to address the situation with the lending company. The builder cannot hold you liable for a situation outside of your control that has caused you to lose your ability to secure a loan. However, if this is not the case then you are bound to whatever terms were in the signed contract. I suggest you take your contract to a lawyer, spending $200 for a consult versus losing thousands of dollars makes it worth it.

kevinm · 11-14-2007, 06:37 PM

Quote:

Originally Posted by AnalyzeThis

If your situation has caused you a financial hardship that would now preclude you from qualifying for the mortgage, then you may be able to address the situation with the lending company. The builder cannot hold you liable for a situation outside of your control that has caused you to lose your ability to secure a loan. However, if this is not the case then you are bound to whatever terms were in the signed contract. I suggest you take your contract to a lawyer, spending $200 for a consult versus losing thousands of dollars makes it worth it.

Baloney! Toll Brothers has its own mortgage company. They WILL QUALIFY you for the loan. You may not like the terms or the interest rate, but you will be at the settlement table or will lose your money. The sad part is that Toll will turn around and advertise your deposit as a "discount" and sell the home as a quick delivery house and it will not cost Toll one cent of profit.

Also, they may be willing to discount the house by the amount of your "financial hardship" to keep you in the house. My Toll project manager worked with me to get the most for my money. They are good people to work with.

AnalyzeThis · 11-14-2007, 07:28 PM

So because they have their own mortgage company, does that mean that every buyer has to use THEIR mortgage company? I think not. Where in the OP's post did you see a mention of them using Toll Brothers mortgage company?

Nice that you call my suggestions baloney, howver, you have none to offer; particularly since the poster came in here asking about suggestions for getting out of the contract, not bargaining tactics to reduce the sales price. What way to constructively address the topic at hand.