buyer backing out on sale of a house

[ddcam5]

I have contracted through means of a good faith agreement to purchase a home that is in the process of being built. I am having difficulties at my new job of 3 months and my future there is in question. I have decided that rather than deplete my savings to close on the home with the possibility being unemployed looming overhead, to back out on the deal. The builder's real estate agent claims that I owe an amount of approximately $800 as reimbursement for extra insulation and termite inspection that were required for my specific home loan. Legally, what is my responsibility if any? There is no mention made in our contract as to who would pay for these expenses and the builder paid it and told me about it afterwards. I don't just want to hand over money if I'm not legally obligated. In addition, I put up $1000 earnest money and wonder how that factors in. What should or can I do. Thanks BDM

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by ddcam5:
I have contracted through means of a good faith agreement to purchase a home that is in the process of being built. I am having difficulties at my new job of 3 months and my future there is in question. I have decided that rather than deplete my savings to close on the home with the possibility being unemployed looming overhead, to back out on the deal. The builder's real estate agent claims that I owe an amount of approximately $800 as reimbursement for extra insulation and termite inspection that were required for my specific home loan. Legally, what is my responsibility if any? There is no mention made in our contract as to who would pay for these expenses and the builder paid it and told me about it afterwards. I don't just want to hand over money if I'm not legally obligated. In addition, I put up $1000 earnest money and wonder how that factors in. What should or can I do. Thanks BDM <HR></BLOCKQUOTE>

Depending on how your contract was written, you are probably liable for those expenses and will lose your $1000. It can be argued that the builder can get reimbursed for the total cost of the insulation from the next buyer if the cost is just added to the sales price. The termite inspection was for your loan so it is your expense. Since you will default on the sale, they get to keep your earnest money.