homesite transfer = agreed or new price?

Houston, TX.

Agreed to buy a home on site x for $x.

We were told there would be enough room for a pool, and upon inspection, found there wasn't.

The contract allows us to transfer to a different homesite for a fee of $500.

So, we want to exercise that option to transfer to a different (larger) homesite.

Since agreement, base price for house x has gone up $8000.

Contract says 'can do' transfer for fee of $500.

Now builder says he doesn't want to charge $500, but wants to charge the now current price. (ie: same as us walking away from agreement (full refund), and working up totally new agreement for y at $y).

Do I have to pay the increased price, or should the $500 'transfer fee' hold the house price as it was initially agreed upon?

The contract makes no mention of having to pay any base house price differences etc upon transfer, but it doesn't say I don't.

The model/options of home are identical.

We're happy to pay for the larger homesite, but not happy about paying a higher price on the house itself.

[HomeGuru]

Originally posted by pbelb
Houston, TX.

Agreed to buy a home on site x for $x.

We were told there would be enough room for a pool, and upon inspection, found there wasn't.

The contract allows us to transfer to a different homesite for a fee of $500.

So, we want to exercise that option to transfer to a different (larger) homesite.

Since agreement, base price for house x has gone up $8000.

Contract says 'can do' transfer for fee of $500.

Now builder says he doesn't want to charge $500, but wants to charge the now current price. (ie: same as us walking away from agreement (full refund), and working up totally new agreement for y at $y).

Do I have to pay the increased price, or should the $500 'transfer fee' hold the house price as it was initially agreed upon?

The contract makes no mention of having to pay any base house price differences etc upon transfer, but it doesn't say I don't.

The model/options of home are identical.

We're happy to pay for the larger homesite, but not happy about paying a higher price on the house itself.

**A: have an attorney review your contract.

[JETX]

Though it would depend entirely on the EXACT wording of the agreement (and that would need an attorney review as suggested by HG), I offer the following:
You may have the right to the $500 transfer, but are you really willing to take this issue to court and delay the building for the year or two it would take to wind itself through court (since the amount is above small claims limit)???

Go to an attorney, let him/her review the agreement and write the builder a letter on your behalf. It is likely that would be sufficient to resolve the issue. And if not, the attorney should be able to draft and agreement that would reserve your right to litigation later.

[HomeGuru]

Writer, keep us posted.

Thanks for the advice. Will let you know what happens. I'm not keen on having things held up, and, I'm concerned that if I don't act quickly in terms of a letter to get it cleared up straight away, they'll try to seel the transfer-to property out from under me to avoid the issue all together.

[HomeGuru]

Yup, it may be the old builder switch-er-roo trick.