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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 19475
Experience:  B.A.; M.B.A.; J.D.
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I have $35K in deposits on a new build that hasnt started yet.

Customer Question

I have $35K in deposits on a new build that hasnt started yet. I also found out that my client is planning on terminating my contract thereby creating a condition that will severly affect my ability to qualify for the mortgage.
The home has not started yet but am approaching what they call the end of Release 1 in which all plans are approved and the pre-construction meeting is scheduled for next week.
My purchase agreement states I am at risk of losing all earnest and deposits should I not be able to fulfill the contract.
Do I have any recourse in collecting any of the $35K should I default on the contract?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Phillips Esq. replied 2 years ago.
Hello: This isCustomer I am a licensed Attorney and I will be assisting you today.
I have $35K in deposits on a new build that hasnt started yet. I also found out that my client is planning on terminating my contract thereby creating a condition that will severly affect my ability to qualify for the mortgage.
The home has not started yet but am approaching what they call the end of Release 1 in which all plans are approved and the pre-construction meeting is scheduled for next week.
My purchase agreement states I am at risk of losing all earnest and deposits should I not be able to fulfill the contract.
Do I have any recourse in collecting any of the $35K should I default on the contract?

Response: If you default, you would lose all your deposits pursuant to the terms of your contract, regrettably. There is no way around it.