Real Estate Law

Have Real Estate Law Questions? Ask a Real Estate Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Real Estate Law
This answer was rated:

This past Saturday, I saw a home with LGI Homes in Georgia

and signed a purchase agreement...
This past Saturday, I saw a home with LGI Homes in Georgia and signed a purchase agreement. I also gave them 500 dollar earnest money. I think this was a mistake as I scouted the area I would be staying in the evening and the neighborhood is worse than I originally thought, so I no longer want to move there. I have a scheduled first meeting with the mortgage loan officer tonight, so officially I have not been approved for the home loan amount as of yet. This would be our first meeting. I also think that I was stupid to think that it would be easy for me to come up with the 3.5% down for the FHA loan. BotXXXXX XXXXXne: am I now obligated to buy this house, just because of signing the purchase agreement on Saturday?
Show More
Show Less
Ask Your Own Real Estate Law Question
Answered in 5 minutes by:
8/20/2013
RealEstateAnswer
Category: Real Estate Law
Satisfied Customers: 28,692
Experience: 10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
Verified
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good morning. I certainly understand the situation and your concern. The purchase agreement is a legal binding contract, if agreed to and executed by both parties. As such, you would be expected to proceed with the purchase and act in good faith, pursuant to the terms and conditions stated within. However, the contract likely contains a lot of conditions which have to be met and I am inclined to believe that obtaining finance is one of them. As such, if you are unable to obtain the FHA loan as a result of your credit, income, debt or lack of a down payment, you could have a legal basis to walk away, assuming you can obtain evidence from the loan officer, that you can not qualify. In addition, read the contract and see if it contain a period of time where you have a right to walk away or cancel. Often times, there is an inspection period and time for you to perform your due diligence, which could benefit you in this situation as well. If you fail to perform and advise them you are not going to close, they could proceed and sue you for damages suffered, which also will be stated within the contract. This may be a situation if you read the contract, where their damages are limited to only the deposit you gave, depending on the time frame in which you backed out.

Please let me know if you have any follow up questions or need any clarification on something which I stated above, prior to rating me. Also, please remember to rate my service with 3, 4, or 5 faces/stars, before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two faces/stars on the left, please STOP and reply to me via the "REPLY TO EXPERT or CONTINUE CONVERSATION "button. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.
Ask Your Own Real Estate Law Question
Customer reply replied 4 years ago

Okay, so even though I have not officially qualified for the loan, I am still obligated to the house because I signed the agreement? Yes, a loan approval is a contingency for the house. Therefore, do you have any advice for the meeting that is scheduled with the loan officer for this evening? If I absolutely do not want the house, should I even bother collecting all the paperwork? Do I just attend the meeting, tell the officer that there's no way I can come up with the down payment, and then do not fill out the loan application? I am very nervous in terms of making this whole thing worse and don't know what my next step should be and i only have 8 more hours until that meeting. Any further advice?

At this point, there is a contract and you have a legal obligation to make a good faith effort to proceed and obtain financing. You still want to meet with the loan officer and obtain all the conditions for the loan. If you can not come up with the down payment of 3.5%, you will not be able to close on the loan, even if you qualify for everything else. As such, you would need to disclose this to the loan officer and try and obtain something in writing from them, saying you can not obtain financing. This way, you have evidence to show the seller. Of course, the issue will remain as to why you signed the contract and were aware of the 3.5 % you would have to come up with that you did not have but proceeded anyway but things often change. It is possible you had the money and ended up having to use it for something else or something else resulted in the inability to obtain it. Talk with the officer, explain your current situation and let him/her be the one who says you can not qualify. This way, you have a basis to walk away, since a condition was obtaining financing and they will not give it to you.
RealEstateAnswer
Category: Real Estate Law
Satisfied Customers: 28,692
Experience: 10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
Verified
RealEstateAnswer and 87 other Real Estate Law Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago

Does a right of rescission law apply to me in the state of Georgia, being that I just signed the Purchase agreement on Saturday? Curious if that law will allow me to get out of this Purchase Agreement contract.

It would not apply in this situation. Here is the reason why.

http://dbf.georgia.gov/right-rescissionright-cancel
Ask Your Own Real Estate Law Question
Ask RealEstateAnswer Your Own Question
RealEstateAnswer
RealEstateAnswer
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28,692
28,692 Satisfied Customers
Experience: 10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases

RealEstateAnswer is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

5,436 satisfied customers

17 years of legal experience including real estate law.

Barrister

Barrister

Lawyer

10,826 satisfied customers

16 years real estate, Realtor. Landlord 26 years

Infolawyer

Infolawyer

Lawyer

7,657 satisfied customers

Experienced lawyer

Ray

Ray

Lawyer

7,367 satisfied customers

Texas Attorney for 30 years dealing in real estate

LawTalk

LawTalk

Attorney

6,207 satisfied customers

I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.

Dimitry Esquire

Dimitry Esquire

Attorney

5,526 satisfied customers

JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin

Ely

Ely

Counselor at Law

4,899 satisfied customers

Qualified attorney in private practice including business, family, criminal, and real estate issues.

< Previous | Next >

Related Real Estate Law Questions
My first mortgage held by of A was successfully modified,
My first mortgage held by B of A was successfully modified, but before the process was concluded and the modification on the 2nd mortgage (also held by B of A) could begin, B of A's claim with Old Rep… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
Which date determines the effective date of a mortgage
which date determines the effective date of a mortgage assignment the date that it was signed or the date the contract was filed with the record … read more
Attyadvisor
Attyadvisor
Doctoral Degree
6,878 satisfied customers
If the title to the home and mortgage is in both spouses
If the title to the home and mortgage is in both spouses names, but one dies, should the other change the name on both in order to sell or bequeath the home? … read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
We just purchased a home, using an FHA loan it closed on
We just purchased a home, using an FHA loan it closed on October 30, 2017. The required repairs for the home included replacing some of the rough cut lumber siding and sealing the siding on the entire… read more
RealEstateAnswer
RealEstateAnswer
Lawyer
28,692 satisfied customers
Real estate question. NC. Mortgage. Need to know if fha pr
need to know if fha pr va loans will allow for spring water instead of well… read more
N.Brown ESQ
N.Brown ESQ
Juris Doctorate
11 satisfied customers
This is complicated! I am underwater with my mortgage by at
This is complicated! I am underwater with my mortgage by at least $30000.00. I am handicapped & need the assistance of my sister financially as well as physically. My condo is falling apart and the ve… read more
RealEstateAnswer
RealEstateAnswer
Lawyer
28,692 satisfied customers
I would like to remove my name from my FHA loan property.
I would like to remove my name from my FHA loan property … read more
RealEstateAnswer
RealEstateAnswer
Lawyer
28,692 satisfied customers
If I am not the holder of the Mortgage, but the deed as
If I am not the holder of the Mortgage, but my name is ***** ***** deed as tenants in common. How can I get my name off of the deed?… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
Is there a time limit for banks to approve a mortgage.
Is there a time limit for banks to approve a mortgage … read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
My landlord is withholding my deposit ($3750) for damage
My landlord is withholding my deposit ($3750) for damage wood flooring caused by a burst pipe under the kitchen sink. He claims that it was caused negligently by a sealed container containing chlorine… read more
Dwayne B.
Dwayne B.
Juris Doctor
28,498 satisfied customers
Missouri homeowner files damage claim with insurance
Missouri homeowner files damage claim with insurance company, and, receives $150,000. Insurance check is written jointly to homeowner & servicer; signed by homeowner and sent to servicer for deposit. … read more
LegalGems
LegalGems
Juris Doctorate
10,163 satisfied customers
A condo that I have a contract on was damaged in hurricane
A condo that I have a contract on was damaged in hurricane Irma. Some water got into the unit through a damaged roof. The sellers got a remediator in there and the result is now a dry condo with missi… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
Another property damaged my property by illegal diversion of
Hi another property damaged my property by illegal diversion of storm water. I have not sued them yet but now they are selling their home trying to run from me. Viewing your article. … read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
I just asked my mortgage company if they can differ 3 months
Hi i just asked my mortgage company if they can differ 3 months of my mortgage payments to the back of tne note.this is due to hurricane Harvey. They came back ans said they will give me 3 months of f… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
FHA loan requires 3 months history of child support
FHA loan requires 3 months history of child support payments. Does this mean at the time my ex writes the 3rd check I can close after that date or wait a month after that 3rd check clears? Need to fig… read more
LawTalk
LawTalk
Attorney
Juris Doctor
6,207 satisfied customers
Will assuming an FHA loan convey title to property 100%? Los
Will assuming an FHA loan convey title to property 100%? … read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
I have an FHA loans owned by what was Ginny Mae which I
I have an FHA loans owned by what was Ginny Mae which I recently read is bankrupt since 2009 and basically doesn't exist anymore my loan has been recently transferred from BAC home loans to a new serv… read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
My wife and I are refinincing...FHA loan...she is on the
my wife and I are refinincing...FHA loan...she is on the title but not the note. She is concerned that if I die she would loose the house. We are in WA state...community property. What protections doe… read more
LegalGems
LegalGems
Juris Doctorate
10,163 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x