NC new home - Can I back out of contract right afte signing (New Home Builder)

[livewyre]

I live in North Carolina.

Last night I wrote a check as a deposit on a new (yet-to-be-built) tract home (big builder). I want to back out. The paperwork has not even been sent to the corporate office. I told them they have to wait until at least Friday before attempting to deposit the check as there are electronic funds that have to be transferred. My buyer's remorse set in a mere 3 hours after I signed the papers. I left an urgent phone message late last night to the sales office, sent a FAX as well, and will call again this morning. The actual agent I worked with is out until Monday.

I can't find any information about a "72-hour backout clause" in my state.

Are they going to sue me for the $2,500 deposit now? Again, the funds are not in their posession so they would have to go to the trouble of suing to get the money.

I can't be the only person who signed a contract then immediately backed-out, right?

So what's the score...will they go after me now?

[Ohiogal]

Originally Posted by livewyre

I live in North Carolina.

Last night I wrote a check as a deposit on a new (yet-to-be-built) tract home (KB Homes). Now I want to back out and cancel. The paperwork (as far as I know) has not even been sent to the corporate office as my buyer's remorse set in a mere 3 hours after I signed the papers. I left an urgent phone message late last night to the sales office and will call again this morning.

The check won't cash if they try and deposit it.

I can't find any information about a "72-hour backout clause" in my state. The builder is KB Homes.

Are they going to sue me for the $2,500 deposit now? Again, the funds are not in their posession so they would have to go to the trouble of suing to get the money.

I can't be the only person who signed a contract then immediately backed-out, right?

So what's the score...will they go after me now?

Nice job for committing fraud by writing a bad check. They will go after you for that and they don't necessarily need to go to court -- a collection agency will do that. What does your contract say? Did you read it?

[livewyre]

Originally Posted by Ohiogal

Nice job for committing fraud by writing a bad check. They will go after you for that and they don't necessarily need to go to court -- a collection agency will do that. What does your contract say? Did you read it?

When I wrote out the check I told the agent (3 times) that there were NO funds in that account and that only through electronic funds transfer sometime in the next few days would that check (and thus deposit) happen. THREE hours later I called and left an urgent message that they should hold all paperwork and not send anything on to their corporate office. I then faxed a letter telling them that I understood they could (and would) sell that lot without a deposit.
They have the option of cancelling my contract with no actual deposit made since it takes both an agreement AND money consideration to make the contract. Their contract says as much...no deposit, no contract and they can sell the lot.

Since a whole 3 or 4 hours went by, during which time they were closed, I doubt they have actual damages, though yes I guess if they wanted to go after me they could.

Are you saying that NO ONE ever backs out of a new housing development at the VERY beginning of the process? Land hasn't been broken just lots are plotted out.

Are you saying that NO ONE ever backs out of a new housing development at the VERY beginning of the process? Land hasn't been broken just lots are plotted out.

Sure they do, but not without paying some consequences for their actions.

Additionally...Did you ever think to go to the bank and transfer funds into your checking account so that you wouldn't be committing fraud by writing a bad check?

Let me quess...YOU DON'T have any money in a savings account either. If I'm correct...you have NO BUSINESS purchasing a pack of bubble gum, let alone a house.

[livewyre]

And your ASSumptions would be grossly incorrect. I do have the funds...enough to pay 50% of a decent house OUTRIGHT if I so desired. In liquid funds, though not in checking. My financial institution is an Internet-only savings one and thus there is no storefront to go to to physically transfer funds even if I wanted to...and that means I have to do ELECTRONIC transfers with no other option. And I made that *crystal clear* BEFORE I wrote a check and in fact suggested I forward-date it or come back another day. Calling the company immediately and instructing them to hold all paperwork and not do anything the paperwork or the check was the right thing to do. I committed no fraud.

Originally Posted by livewyre

And your ASSumptions would be grossly incorrect. I do have the funds...enough to pay 50% of a decent house OUTRIGHT if I so desired. In liquid funds, though not in checking. My financial institution is an Internet-only savings one and thus there is no storefront to go to to physically transfer funds even if I wanted to...and that means I have to do ELECTRONIC transfers with no other option. And I made that crystal clear BEFORE I wrote a check and in fact suggested I forward-date it or come back. I committed no fraud.

Oh brother!!!

No matter what YOU TRIED TO NEGOTIATE, the fact is that YOU KNOWINGLY WROTE A CHECK WITH NO AVAILABLE FUNDS to cover it.

Another question: IF your savings is INTERNET ONLY and there is no "STORE FRONT" to go to physically, HOW DO YOU GET MONEY OUT IF IT?

[livewyre]

Originally Posted by shellandty

Another question: IF your savings is INTERNET ONLY and there is no "STORE FRONT" to go to physically, HOW DO YOU GET MONEY OUT IF IT?

I transfer monies (if and when I need them) to my local checking account via electronic funds transfer. You are familiar with ACH right? You call or do this via a secure website.

Originally Posted by livewyre

I transfer monies (if and when I need them) to my local checking account via electronic funds transfer. You are familiar with ACH right? You call or do this via a secure website.

Then why can't you transfer monies to your local checking account TO COVER THE BAD CHECK YOU WROTE??

In any event...you are going to have to read the contract that you signed and see what it says about "Buyer's Remorse".

[livewyre]

Originally Posted by shellandty

Then why can't you transfer monies to your local checking account TO COVER THE BAD CHECK YOU WROTE??

In any event...you are going to have to read the contract that you signed and see what it says about "Buyer's Remorse".

I did put in a transfer, but it won't go through until FRIDAY. And I told them that. The agent said "no problem" as the paperwork wouldn't go to corporate headquarters before then ANYWAY, at the earliest.

Originally Posted by livewyre

I did put in a transfer, but it won't go through until FRIDAY. And I told them that. The agent said "no problem" as the paperwork wouldn't go to corporate headquarters before then ANYWAY, at the earliest.

Fine...now that that's cleared up, although I still can't figure how an "electronic transfer" takes two business days. Anyway...

WHAT DOES YOUR CONTRACT SAY about "Buyer's remorse"???

[PghREA]

[quote=shellandty]Oh brother!!!

No matter what YOU TRIED TO NEGOTIATE, the fact is that YOU KNOWINGLY WROTE A CHECK WITH NO AVAILABLE FUNDS to cover it.

And the recipient UNDERSTOOD that the check wouldn't be good for a few days.

No, you are not the only person to have Buyer's remorse. Hopefully, they will just pull the paperwork you signed and all will be well.