I signed a purchase contract to purchase a new home in Manteca CA from a builder by the name Raymus Homes on January 20, 2015. The pre-approval from the builder's prefer lender indicated that in order for me to be pre-approved, I must sell my current home in San Jose. I put my home up for sale on June 15, 2015, I got an offer, however, within 1 week, the buyers of my home backed out because they could not get financing. The house is now back on market. As a result, I cannot obtain financing to meet the seller closing date of July 30th. I asked my RE agent (not related to this transaction) to send Raymus Homes a CAR Contract Cancellation, but Raymus Homes refused to refund my deposit even though on the contract, it indicated that "Seller must return buyer's deposit for Financing Termination".
Raymus Homes insisted on keeping 3% liquidated damages
because in their contract, there is a section called "Damages if Special Improvements". Meaning if the home has been improved based on my upgrades selections for the past few months, they want to keep 3%. In this section, it also indicated that the seller shall make a good faith to dispose such improvements within the next 60 days. They did not even try to sell this home, instead, they insisted on keeping 3% of the purchase price which is equivalent to $15,750.
Can any RE attorney out take a quick look at my purchase contract and let me know if Raymus Homes is doing the right thing. I can pay you for your time.