Closing without a contract contingency met?

[illini84]

Jurisdiction

Missouri

Hello -

I am building a new home, where the builder offered a 10-year property tax abatement as part of the deal in the contract. We are supposed to close next week, but the builder said that the ball was dropped and that they won't have the property tax abatement paperwork in hand for a couple more months due to needing various approvals from the City of St. Louis. In short, they are giving me two options, as I am unable to extend my mortgage rate lock any more:

(1) Don't close on the house because they haven't cleared their contract contingencies (the tax abatement) and cancel the contract; or
(2) Close on the property without the tax abatement in hand and "hope" it goes through (they feel confident that it will)

Obviously, I want to close on the property, but am worried that something will fall through with the tax abatement at the City level and I can't afford the house without the tax abatement. My question is: if I go ahead and close without the tax abatement paperwork in hand and the City ultimately doesn't approve it, would I have any kind of recourse with the builder?

Thank you in advance for your advice!

 

[army judge]

If you sign any contract knowing you're signing the contract with the HOPE that something might materialize in the future leaves you without recourse, because you agreed to do the deal hoping the law might pass.


Run, don't walk away from this SCAM, as you're totally without recourse if the law doesn't pass legislative muster.

You could make a counteroffer of the value of the last tax years taxes times ten, to be applied in reducing the sales price of the home.

Otherwise, don't sign a contract knowing you're being conned.

 

[adjusterjack]

if I go ahead and close without the tax abatement paperwork in hand and the City ultimately doesn't approve it, would I have any kind of recourse with the builder?

No.

The builder isn't "promising" you anything. He's giving you a maybe. And if you rely on the city bureaucracy that is not a party to your contract and over which neither you nor the builder have any control, you would be a fool to close.