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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 35309
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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Can a home builder place signs on homes that show P&I only?

Customer Question

Can a home builder place signs on homes for sale that show P&I only? Buy this house for $800 per month, etc? Or starting from $800 per month?
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  LawTalk replied 6 months ago.

Good afternoon Jeanne,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

So long as the possibility of getting a P&I loan exists (which it does), and so long as the builder is not acting as a mortgage broker, then there is no law to prevent the builder from posting such as sign as a marketing tool for the sale of their project. It is perhaps a bit of "puffing" (an exaggeration of the good points) which would be unethical for a Real Estate agent or a lender to participate in, but for a contractor it is perfectly legal.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

Expert:  LawTalk replied 6 months ago.

Good afternoon,

Do you have any additional questions that you would like me to address for you?

In case you would like a phone call to further discuss these issues you have raised, I will make that offer to you. You are certainly not obligated to accept a call offer, but many people do find it helpful for clarification purposes, as well as to allow them to ask additional questions.

As I have provided you with the information you asked for, would you please now rate my service to you so I can be compensated for assisting you?

Thanks in advance,

Doug

Customer: replied 6 months ago.
I found additional data on the FTC website where a home builder had to settle a lawsuit with the FTC less than 2 years ago. https://www.ftc.gov/news-events/press-releases/2014/06/pennsylvania-home-builder-settles-ftc-charges-deceptive-mortgage
Expert:  LawTalk replied 6 months ago.

Good morning Jeanne,

Thanks for the article. However, the article is not on point and in no way effects my opinion of the situation that you presented in the question you posed.

The article that you linked me to clearly states that the "Pennsylvania-based home builder that offers home financing....". If the contractor that your question relates to is not also in the business of financing that home for the buyer (i.e. is not a lender), then this is not an equivalent comparison.

There is a monumental difference between suggesting that someone can get an interest only loan, and actually offering to finance that sale. And the difference between the two is pivotal to my answer. Remember I prefaced my answer by telling you "...so long as the builder is not acting as a mortgage broker...". You too conditioned your facts by telling me that the builder was "...not a lender".

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

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