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Roger
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31022
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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We have an issue with the contract that we signed new home.

Customer Question

We have an issue with the contract that we signed for a new home. We signed the agreement for the plot on 6/27 and had paid an ernest money of 5000$. one of our friends brought to our notice that there is a high voltage transmission line going behind our house which may have health issues and reselling issues. Being a first time home buyer, we were not aware of all these points to consider. On knowing it, we quickly let the sales guy know that we want to cancel our plot. The sales guy gave us few options but none of it worked for us. On initiating the cancellation, the sales guy had told us that getting ernest money will not be a problem as it is a valid reason
The sales guy misplaced our cancellation form which was brought to our notice after a week, We again resigned the documents. Later on the sales guy tried to spin few stories to delay the return of ernest money. We did not even go for our deco appointment since the sales guy asked us not to cancel but to wait to see if any options work. On sending mail to them about the unpleasant feeling that we are going through, the sales guy sent a mail mentioning that they are not going to pay our ernest money since we had not cancelled our deco appointment and the reason of transmission line does not seem to be a valid reason. Please let us know how to go about getting the money since no work had started till then.
Submitted: 4 months ago.
Category: Real Estate Law
Expert:  Roger replied 4 months ago.

Hi - my name is ***** ***** I'll be glad to assist.

Usually, real estate contracts have contingencies in them.....the most common contingencies are the buyer obtaining financing and the property appraising for at least the purchase price. There could also be other contingencies, but you'd need to review your contract to see.

Expert:  Roger replied 4 months ago.

If there are no other contingencies, then the only way you could avoid losing the deposit/earnest money is if the seller breaches the contract for some reason.

Expert:  Roger replied 4 months ago.

However, if there is no such breach by the seller, then you very well could lose the deposit/earnest money if you don't go through with the sale.

Expert:  Roger replied 4 months ago.

As for the power lines, unless they weren't up when you looked at the house/entered into the contract, and unless the seller concealed their existence, it likely isn't a justified reason to cancel without penalty.

Expert:  Roger replied 4 months ago.

Usually, the only way you can get around entering into a contract absent a breach or an available contingency is if the seller misrepresented something to you or intentionally failed to disclose a material issue.

Expert:  Roger replied 4 months ago.

If that's not the case, then your only option at that point would be to ask the seller to let you out of the contract....which may or may not result in you getting out of the deal with your money.

Expert:  Roger replied 4 months ago.

Thanks for your question and please let me know if you need anything further.

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