riffwraith
Member
- Jurisdiction
- Other
Anywhere, USA
Just heard a story - which apparently happens from time to time - about a builder pulling out of a contract, leaving the prospective owner with no new house. The prospective owner put down some money as a down payment (which was refunded), had the house built, and 1 wk before closing, the builder said that they were not going to sell the prospective owner the house, but instead put it on the market, b/c the way the market has been going, they could sell it for an additional profit. Apparently the builder owned the land, but I am not completely clear on that.
Supposedly the contract says this is ok to do. But is it really? If you sign a contract that says the other party can rip it up at any time, is it really ok for the other party to just rip it up? I understand that you signed it willingly, but I also understand that sometimes you can find a contract that has certain stipulations that are - for one reason or another - not enforceable. So as far as I understand, it's almost always whatever it says in the contract, but not always.
Is there anything a person can do to protect themselves against this happening? An easy answer is 'don't sign the contract.' Easy to just say that, but if all the builders do that, that would mean you could never have a house built.
And then what happens if you own the land? As in, you bought a plot. I assume that's the best way to protect yourself, as I can't imagine the builder would tell you they are going to sell the house to someone else.
Thoughts?
Just heard a story - which apparently happens from time to time - about a builder pulling out of a contract, leaving the prospective owner with no new house. The prospective owner put down some money as a down payment (which was refunded), had the house built, and 1 wk before closing, the builder said that they were not going to sell the prospective owner the house, but instead put it on the market, b/c the way the market has been going, they could sell it for an additional profit. Apparently the builder owned the land, but I am not completely clear on that.
Supposedly the contract says this is ok to do. But is it really? If you sign a contract that says the other party can rip it up at any time, is it really ok for the other party to just rip it up? I understand that you signed it willingly, but I also understand that sometimes you can find a contract that has certain stipulations that are - for one reason or another - not enforceable. So as far as I understand, it's almost always whatever it says in the contract, but not always.
Is there anything a person can do to protect themselves against this happening? An easy answer is 'don't sign the contract.' Easy to just say that, but if all the builders do that, that would mean you could never have a house built.
And then what happens if you own the land? As in, you bought a plot. I assume that's the best way to protect yourself, as I can't imagine the builder would tell you they are going to sell the house to someone else.
Thoughts?
