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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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I signed a purchase contract to purchase a new home

Customer Question

Hello,
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.
Thank You,
Darlene
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Maverick replied 1 year ago.
Welcome! My name is Maverick. I very much enjoy what I do and I hope that you will benefit from this information.
Yes, please upload the contracts that you want reviewed. I will take a look at them and send you a quote if it is expected to cost more than your current deposit amount. However, please read the JA disclaimer below before agreeing to go forward.

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