Experience backing out of new construction contract (sale, lease)

[annesg]

I'm just wondering if someone can give me first hand experience in getting out of building a new home contract. I have clients who have been hit suddenly with some horrific circumstances (breast cancer, huge medical bills.). Now they're having to relocate to be able to live. They have a deposit on a new house but now simply cannot close. Has anyone EVER been able to get back even part of a deposit? Technically the contract says nothing about that being an option, but I would love to think it's possible.

Thanks,.

[chrisw]

Id speak to a lawyer and bring up the medical issues

[Mike1306]

Medical issues are probably not a factor. Alot of times even death is not if there are 2 principals on a contract.
Each contract is different from each builder so no one would be able to say with out looking at the contract.
Is this a condo, new development, home on land they already own?

[annesg]

new development. with a builder. clients will be relocating out of state for work. they won't qualify for the house any longer since they're on one income due to illness.

[Mike1306]

Many new construction contracts don't have a financing contingency so this may not be an out.

[MYP]

TALKING: Contracts; Getting Out Of a Deal On a Home - New York Times

Might be worth their/your while to discuss this with an attorney and the builder. They have a great interest in fostering good will and this unfortunate circumstance may be enough to amicably dissolve the contract. Good luck to your clients, I truly hope that things work out in their favor.

[TriMT7]

If the home is in a subdivision, look into issues surrounding the Interstate Landsales Disclosure Act. LOTS of technicalities that many builders fail to include and which can work to get buyers out of an otherwise binding contract.

[Mike1306]

Originally Posted by TriMT7

If the home is in a subdivision, look into issues surrounding the Interstate Landsales Disclosure Act. LOTS of technicalities that many builders fail to include and which can work to get buyers out of an otherwise binding contract.

The OP contracted to build a home so the ILDA does not apply.

EXEMPTIONS
Sec. 1403.

(a) Unless the method of disposition is adopted for the purpose of evasion of this title, the provisions of this title shall not apply to --


(1) the sale or lease of lots in a subdivision containing less than twenty-five lots

(2) the sale or lease of any improved land on which there is a residential, commercial, condominium, or industrial building, or the sale or lease of land under a contract obligating the seller or lessor to erect such a building thereon within a period of two years;

[bentlebee]

I have experience with getting out of 2 new build home contracts. It depends which builder. Some are very strict and don't give a .... about peoples troubles, but there are builders who are doing the right thing in a situation like this. I don't want to put everything in this blog but you can write me and my experience with this issue might help your clients too. I had a $ 20,000- deposit and got the whole amount back. The builder didn't have to do it but they did and I would certain go back to that builder and recomment this builder to others. It was easy but they gave it back in a time that the market went down. In the other deposit I got half back and the amount was way lower, so at the end I didn't loose much, only won because if I had closed on the house I could have lost way more.

[Gabriela1971]

Hi,
I'm having the same problem.
Pls I ned go contact with someone who can help me geting my deposit back.
Do you know any lawyer??

regards,
Gabriela / [EMAIL="gabriela_tg@hotmail.com"]gabriela_tg@hotmail.com[/EMAIL]