Article About Buyer Potentially Losing 50k Deposit With Builder
The three biggest mistakes are indeed:
1. Not using a buyer's agent
2. Opting to use the builder's preferred finance company
3. Signing a standard builder contract without adding any of your own protections and contingencies.
Agree with the article - that many builders insert carefully worded fine print into sales contracts that naturally favors them in court -- language that necessitates careful legal interpretation by a party on the buyer's side -- before the documents are signed.
Many builders make it a practice to retain deposits after buyer cancellation due to wording that favors the builder - and not the buyer.
Agree that builders are in a world of hurt now and grasping at straws like others in the housing game - and as the market tightens, they are simply less likely to be flexible.
Builders offer extra incentives if you'll just be so kind as to use their mortgage company (or the incentive is a great rate - but an inflated sales price.)
Feel free to read my other articles about builders: (It's a pet peeve of mine because the public is getting raped - without the knowledge they need before going in.... They sign in without representation because "we were just driving buy" "we didn't realize" "they never disclosed that if we signed in alone we'd lose our ability to obtain the representation we want. No one told us."
Builders in the Chicago Area Offering Nice Price Off Discounts on New Construction
posted by Rick Hauser at
8:41 AM
1 Comments:
Yes, buyers need to be VERY careful when signing a builder's contract. At the very least, they need to make sure there is at least a five-day contingency for attorney approval, and then they need to get the contract to their lawyer within those five days so they can be advised on what they've signed and what additional items or contingencies need to be requested from the builder. Builder's contracts are notoriously one-sided, but buyers can protect themselves through the attorney review. If the builder is not willing to budge on the terms of the contract during the attorney review, at least the buyers will know exactly what their risk is or they can choose to back out. Because of the current market conditions, I have found that most of the smaller builders are more than willing to work with buyers so long as they are approached within the attorney review period.
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