Earnest money refund.

[kalyan]

What is the name of your state (only U.S. law)? Colorado.

Hello all:

We signed a contract to build a new house in January of this year. After lots of issues with fitting the house in the lot, the builder finally built the house to frame.

Our contract says that if we are not satisfied w/ the house during our "at-frame" walk through, we are entitled to get our earnest money back. So, we had our walk through last week and we told the builder that we are not satisfied w/ the plan and want to cancel the contract. The sales lady said that she will need to time to get the paperwork ready. We haven't heard from them yet. The earnest money we gave was $3500, which is a big amount for us.

We have a feeling that the builder will not refund our earnest money. If they do this, is there anyone we can contact or file a complaint to get this issue resolved? Better Business Bureau? City authorities? or attorney? We are not sure how much hiring an attorney for this would cost.

Thanks for all the advice in advance.What is the name of your state (only U.S. law)?

[JETX]

You need to formalize your 'rejection'. Send the builder a letter (certified RRR) advising them that you have chosen to exercise your 'contract termination' clause "as provided in (show clause or paragraph number of the section of the contract)".
Include that they have 10 business days to refund your earnest money.

Then, if they don't refund within 10 days of receipt, contact your local small claims court.

[kalyan]

Jetx,

Thanks for your response. The sales lady was supposed to call us yesterday and she did not. I will call her today asking for the status, and if I am not satisfied w/ their response, I will send a formal letter (certified w/ return receipt) as you suggested.

I just hope we dont have to go to the court and get our hard earned money quickly.

Thanks again.

[kalyan]

Here is the latest.

After the walk-through (at frame), builder is ready to let us out of the contract. But, they will not put in a timeframe on when we will get our earnest money refunded. Sales lady says that it can take anywhere from 30-45 days!! 30-45 days??? When we signed the contract, we gave them the check right away. Why different rules when it comes for the builder to refund our money???

Anyway, what are my options here?

1. Wait 30-45 days and if I don't get the check, write letters to the builder and expect reply?
2. Wait 30-45 days and if I don't get the check, take them to small claims court?
3. Can I force them to put a time frame on when we will get the refund?

and a final general question.
Will I ever see my money refunded?? Has any builder ever refunded the money to anyone?

Thanks!
Kalyan