Changing Purchase Contract

What is the name of your state? CA

My wife and I found a home that we liked and signed a contract to purchase. It is being built and will take about a year to complete. We put down $16,000.00. the developer did not sign the contract at the time. Now two weeks after we signed, he wants to put restrictions stateing that we cannot rent the home or sell it within a year of its completion. Our intent was that it was to be an investment in some way. Can he do this?

[nextwife]

Is it possible that these are deed restrictions placed on the lots? I've been involved in subdivision developments in which the CC&Rs had such restrictions. If so, they are part of the land and run with the sale of the land, and if that is the case, he CANNOT sell without those applying to any buyer.

Have you recieved the title for review?

[HomeGuru]

Originally Posted by danieldvp

What is the name of your state? CA

My wife and I found a home that we liked and signed a contract to purchase. It is being built and will take about a year to complete. We put down $16,000.00. the developer did not sign the contract at the time. Now two weeks after we signed, he wants to put restrictions stateing that we cannot rent the home or sell it within a year of its completion. Our intent was that it was to be an investment in some way. Can he do this?

**A: why did you give $16K without getting a signed contract from the developer? Do you NOW have a signed contract?

We do this on occassion. As Sunday is our free day we often buy homes on Sunday when the developer is not in. They sign on Monday no problem. In this situation, we were told by the sales person, the developer went around town and talked to other developers to get thier advice on this, and was told that he should now add the restrictions. He has not signed the contract yet, I basically want to put the screws to this guy, but is it worth it. Incidently, they are now (2 weeks later) selling the same homes $20,000 more. You see my motivation.

[nextwife]

Originally Posted by danieldvp

He has not signed the contract yet, I basically want to put the screws to this guy, but is it worth it. Incidently, they are now (2 weeks later) selling the same homes $20,000 more. You see my motivation.

??? If he hasn't signed the offer, and he is now asking $20,000 more for the same place, he can simply say to you "Take or leave it". He does not want you selling, after purchase, at a price that will undercut the price he is marketing other homes in the same area. HE has no obligation to sell, nor you to buy, if there is no contract.

So how do you intend to "put the screws to him"?

[HomeGuru]

Originally Posted by nextwife

??? If he hasn't signed the offer, and he is now asking $20,000 more for the same place, he can simply say to you "Take or leave it". He does not want you selling, after purchase, at a price that will undercut the price he is marketing other homes in the same area. HE has no obligation to sell, nor you to buy, if there is no contract.

**A: that's correct.
******

So how do you intend to "put the screws to him"?

**A: especially with no scewdriver?

One last bit then I will leave this alone. I received an advance copy of a letter from the developer's attorney. Essentially it is this. This development is 75 - 100 homes. When I agreed to this purchase I got one of the last 10 lots, I did this with 5 of my brother in law's, they each purchased one lot. All the other lots we were told had already been contracted. Now they want to change the rules. I realize they have not signed. No obligation etc. But does this not seem to unbalance the playing field. Putting myself at the disadvantage that no other purchaser is under?

[HomeGuru]

Originally Posted by danieldvp

One last bit then I will leave this alone. I received an advance copy of a letter from the developer's attorney. Essentially it is this. This development is 75 - 100 homes. When I agreed to this purchase I got one of the last 10 lots, I did this with 5 of my brother in law's, they each purchased one lot. All the other lots we were told had already been contracted. Now they want to change the rules. I realize they have not signed. No obligation etc. But does this not seem to unbalance the playing field. Putting myself at the disadvantage that no other purchaser is under?

**A: yes, you are at a clear disadvantage. Especially if you have no contract.