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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55699
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I bought a new build from a builder in ax which states if

Customer Question

I bought a new build from a builder in ax which states if any default happens by buyer they can either take the earnest money as payment or get the court order to make you buy the home; it is about half way built when my wife and I decided to look at other houses because we were frustrated with the time line changed; then we found the perfect resale house with everything we wanted and offered and it was accepted and inspection has been done and it's finishing underwriting by the bank; and now trying to cancel the new build and they are talking to me as if they will possibly sue; I just want to know if I close on the second house before the new build and I cannot get a 2nd mortgage what r some repercussions - garnish wages etc
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.

Good evening. My name is ***** ***** I will be helping you today! It will take me just a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 1 year ago.

First, if the builder unilaterally changed the time line in a material way, that's a default by the builder and would allow you to terminate and get a refund of your deposit. Second, even if there was no basis for you to terminate and you were held to be in default by terminating, your only exposure is going to be the earnest money. Even if your contract provides for specific performance in the event of default, the fact is that courts simply do not enforce specific performance against buyers. Rather, the courts consider the earnest money as adequate compensation to cover any losses of the seller because the seller still owns the property and can simply sell it to another buyer.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (hopefully Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

Expert:  Richard replied 1 year ago.

I just wanted to let you know that I will be signing off for the evening.. Should you have a follow up while I’m away, I will address it immediately upon my return in the morning. Thank you in advance for your patience. I apologize for any inconvenience.