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Earnest Money for New Home Contruction

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T

TFred

Guest
We live in Texas.

Six months ago we put up earnest money to have a new home built. Because this was a custom home, we met with an architect provided by the builder and had blueprints developed. About a month later, our sales representative left on maturnity leave for three months. During this time, no one contacted us regarding the house and nothing regarding the house ocurred. It has been two more months since the sales representative has come back from leave and the house has not been started. In fact, the permits have not even been obtained. Due to the extended period of time, we would like to get out of the contract. The builder stated that they will keep all of our earnest money to cover the cost of the blueprints. They said we can have a copy of the blueprints but they also have the right to use the blueprints to build a house.

Is there a way to require the builder to return some or all of the earnest money? And if not, does the builder have the right to use the floorplan we paid for?

Thanks for your assistance!
 


HomeGuru

Senior Member
TFred said:
We live in Texas.

Six months ago we put up earnest money to have a new home built. Because this was a custom home, we met with an architect provided by the builder and had blueprints developed. About a month later, our sales representative left on maturnity leave for three months. During this time, no one contacted us regarding the house and nothing regarding the house ocurred. It has been two more months since the sales representative has come back from leave and the house has not been started. In fact, the permits have not even been obtained. Due to the extended period of time, we would like to get out of the contract. The builder stated that they will keep all of our earnest money to cover the cost of the blueprints. They said we can have a copy of the blueprints but they also have the right to use the blueprints to build a house.

Is there a way to require the builder to return some or all of the earnest money? And if not, does the builder have the right to use the floorplan we paid for?

Thanks for your assistance!

**A: you need to have an attorney review your sales contract for specifc terms and conditions for termination, remedies in the event of default and any written side other agreements. Without a complete and thorough review of your contract documents, no one would be able to properly advise you.
When we provide advice as in your case, we do not guess or make up answers that sound good. In order for our responses to be as accurate as possible, we need to respond based on documentary evidence, confirmed facts, pertinent state statutes, applicable case laws, our experiences based on similar circumstances or cases etc.
Otherwise, we have very little to go on resulting in feeble unsubstantiated watered down can't take it to the bank ill-legal advice.
Please accept our no advice response. Your understanding is appreciated.
 

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