Walk away with a house contract.

[timcock]

I have booked a house with Lennar's back in August 2018, which is still under construction and closing is scheduled somewhere around March 1st week. I have paid some $7k so far. But now I have to relocate to the different city.

What are the options I have?
1. Can I walk away from this contract?
2. How much more $$ they might ask me.
3. Could this attract a lawsuit against me?
4. What all other troubles it might cause me in future?

 

[PayrollHRGuy]

1. Yes, but see remaining answers.
2. The remaining total amount agreed to in the contract.
3. Yes, that is how they will get you to pay the amount of #2.
4. Trashed credit, bankruptcy.

 

[timcock]

How can I check about #2 [2. The remaining total amount agreed to in the contract.] in my contract document. Under which head it would be available.

 

[PayrollHRGuy]

There is no way to know. Read the entire contract or pay a lawyer to explain it to you.

 

[adjusterjack]

How can I check about #2 [2. The remaining total amount agreed to in the contract.] in my contract document. Under which head it would be available.

Depending on the terms of the contract you might just lose the $7000 as "liquidated damages" but you'll have to study the contract to find out.

 

[timcock]

This is what my contract says and I have paid some $7k & total house value is $400k (inclusive of $35k), in that case how it would fall on me.

"14. Buyer's Default. In the event of Buyer's default and to the extent allowed by law, Seller shall be entitled to keep, as liquidated
damages and not as a penalty, Buyer's Deposit not to exceed fifteen percent (15%) of the Total Purchase Price, except that Seller may,
in addition, keep, as liquidated damages and not as a penalty, any and all Advanced Payments made by Buyer to Seller for options,
extras or upgrades for which Seller has made contractual commitments or incurred liability by placing orders or otherwise. Buyer
agrees that actual damages in the event of breach by Buyer would be costly and difficult to calculate and that such liquidated damages
are a fair and reasonable remedy and shall not be considered a penalty."

 

[justalayman]

It really does require reading the entire contract to know how things play out but the section you cited, alone, appears to allow you to walk away losing all money paid and it’s over.


There may be other sections of the contract that apply though.

 

[Zigner]

If you do not understand your contract, you should take it to an attorney for review. Giving an interpretation of your contract would be the practice of law.

 

[adjusterjack]

This is what my contract says and I have paid some $7k & total house value is $400k (inclusive of $35k), in that case how it would fall on me.

"14. Buyer's Default. In the event of Buyer's default and to the extent allowed by law, Seller shall be entitled to keep, as liquidated
damages and not as a penalty, Buyer's Deposit not to exceed fifteen percent (15%) of the Total Purchase Price, except that Seller may,
in addition, keep, as liquidated damages and not as a penalty, any and all Advanced Payments made by Buyer to Seller for options,
extras or upgrades for which Seller has made contractual commitments or incurred liability by placing orders or otherwise. Buyer
agrees that actual damages in the event of breach by Buyer would be costly and difficult to calculate and that such liquidated damages
are a fair and reasonable remedy and shall not be considered a penalty."

On the one hand, you signed the contract knowing you could be on the hook for $60,000 + the $7000 advanced payment if you backed out.

On the other hand, if you were sued for $60,000 a court might construe that amount as a penalty despite what the contract says and modify it downward.

No way to predict.

And, yes, you should consult a contracts attorney before doing something you might regret.

 

[LdiJ]

Of course, you do have the option of continuing with the contract and then selling the house after you close on it.

 

[justalayman]

On the one hand, you signed the contract knowing you could be on the hook for $60,000 + the $7000 advanced payment if you backed out.

On the other hand, if you were sued for $60,000 a court might construe that amount as a penalty despite what the contract says and modify it .

Where do you come up with the $60k?


Contract states buyers deposits not to exceed 15%. It appears buyer has placed a $7000 deposit and nothing more ergo there is no $60k to retain.

Contract does not provide for suit to claim additional money but states deposits withheld are the total amount seller can make claim to.