Page 1 of 2 1 2 LastLast
Results 1 to 10 of 13
  1. #1
    Join Date
    Jul 2015
    Posts
    2

    Default Purchased a Lot, and Developer Slashed the Prices the Next Day

    My question involves real estate located in the State of: north carolina

    Hi - I bought a lot in north carolina and we agreed on the price and signed a contract on Wednesday. On Thursday the lot next to the one I bought was listed on MLS and the price was 30% lower than the price the developer had shown me that it cost. Earlier he told me there was lots of interest from people and builders in the lots yet they cut the price when they listed it. Do I have any ability to walk away from the contract I have signed (have given them 10% earnest money as well) or any ability to try to get our price lowered? Any help much appreciated thanks!

  2. #2
    Join Date
    Dec 2008
    Posts
    627

    Default Re: Bought Lot then Developer Slashed Prices the Next Day

    Read your contract to see what options you have, that's where you'll find your answer.

  3. #3
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Bought Lot then Developer Slashed Prices the Next Day

    Pay keen attention to the finance contingency if there is one ...salvation might be in there....details matter a lot!

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    The contingencies in your purchase contract are key. If, for example, you have a contingency for financing, you may be able to escape your contract if your bank refuses to lend based upon the property being 'worth' 30% less than you offered to pay for it.

    If there's not a contingency in your purchase contract that allows you to escape your bargain, odds are you're stuck with it.

  5. #5

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    Quote Quoting sarahsarah8
    View Post
    Do I have any ability to walk away from the contract I have signed (have given them 10% earnest money as well) or any ability to try to get our price lowered? Any help much appreciated thanks!
    Unless there are additional penalties to losing the 10% down payment, which I doubt, you can absorb the 10% loss, and purchase another lot with the 30% discount provided there are more available. That still gives you a 20% discount.
    You can also discuss the idea above with the builder and request a 30% discount settling down to 20%.

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    Wrong. A purchase contract has been signed. Absent a contingency that allows the buyer to avoid paying for the lot he bought, the builder can come after him for the difference between the contractual sales price and the lot's ultimate FMV selling price.

  7. #7
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    Depends on the default clause..devil is in details

  8. #8
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    This isn't described as an option contract. It's described as a purchase contract.

  9. #9
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    Many a purchase contract contains a finance contingeny....and many a wise developer seeks to lock in outcome by requiring buyer to use sellers resources .....but that said the Op needs to know what cards they may hold BEFORE they discuss anything with seller.

  10. #10
    Join Date
    Oct 2014
    Posts
    7,941

    Default Re: Purchased a Lot, and Developer Slashed the Prices the Next Day

    Quote Quoting HRinDEVON
    View Post
    Many a purchase contract contains a finance contingeny....and many a wise developer seeks to lock in outcome by requiring buyer to use sellers resources .....but that said the Op needs to know what cards they may hold BEFORE they discuss anything with seller.
    Bear in mind that the buyer must pursue financing in good faith under the typical finance contingency provision. Deliberately acting to sabotage the lender’s approval to escape the contract could lead to a lot of problems, not the least of which is messy and expensive litigation over the matter.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Retailers: Advertised Prices
    By sandradee in forum Consumer Law
    Replies: 7
    Last Post: 09-28-2011, 02:50 PM
  2. Retail Fraud / Shoplifting: Changing Prices
    By PandorasBox in forum Criminal Charges
    Replies: 3
    Last Post: 09-02-2011, 05:31 AM
  3. Retail Fraud / Shoplifting: Switching Prices
    By helpless337 in forum Criminal Charges
    Replies: 3
    Last Post: 03-21-2010, 08:05 PM
  4. Retailers: Honoring Advertised Prices
    By Poolshark in forum Consumer Law
    Replies: 2
    Last Post: 01-24-2010, 05:58 PM
  5. Auto Insurance: I got my top slashed and seats stolen
    By silvers2k in forum Insurance Law
    Replies: 1
    Last Post: 08-08-2007, 03:16 PM
 
 
Sponsored Links

Legal Help, Information and Resources