Buyer is hesitant about signing home contract
Q : I’m buying a new home from a builder. The contract they have provided to me is so onerous and one-sided, I’m afraid to sign it. The builder can walk away if there is a dispute, all change orders must be paid in cash in advance, and they won’t give me a final completion date. Do I have to sign this? A : Well, no. You can change builders. Get background checks and talk to other builder customers. The best thing you can do is monitor them for quality and disbursements. Your lender also can back you up with their record-keeping. Q : I received an offer on my house, but the buyer didn’t give me an earnest money check. I am about to receive another, higher, offer. Is the first contract valid with no earnest money received? A : That’s a complicated question. The contract says the earnest money is to be presented on execution of the contract. If the contract is executed and there is no earnest money, the buyer is in default. Paragraph 15 deals with the remedies on default by the buyer, and the seller has choices to make. If the buyer magically appears with the earnest money, he may have cured the default, although late.
Time is NOT of the essence in this contract form, and the law of contracts is very complex. A lot depends on how the parties react and make decisions. It could have just been an oversight, but you’ll have to see how the buyer reacts. We suggest not signing the new contract until this issue has been resolved. Q : I moved into a new high-rise condominium, my wife has passed away, and my dog and I have decided to change lifestyles. When I took my dog for a walk, I was told he was too big by some other owners and I had to get rid of him. I’ve had him for 13 years and I won’t do that. What can they do to me? A : Our guess is that this restriction was in your condominium declaration or the rule of the condominium association. You have a duty to read them before you purchase the condo.
You must live by their rules, whether you like it or not. That is part of condominium living.
They can file an injunction stopping the dog from staying there, and they can probably fine you. This is not a good fight to pick with your new neighbors. Q : My house recently flooded. I’m trying to figure out what to do. Has it gone down in value because of the flooding? What if I fix it up again? A : Who knows? If you don’t repair it, it is probably a fire sale to the highest bidder. If you repair it, you at least have a chance at a market value resale.
In any event you will have to disclose the flood damage on your seller’s disclosure form. Hopefully, you will never see 56 inches of rain in your lifetime again, but you never know. Be patient and move forward. All is not lost.
To send a question visit and select the “Ask A Question” button. Answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is board certified by the Texas Board of Legal Specialization in residential and commercial real estate law.
If the contract is executed and there is no earnest money, the buyer is in default.