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  1. #1
    Join Date
    Feb 2008
    Posts
    1

    Default Purchase Agreement

    In Indiana:

    We planned to build a new home through a production builder. On 1/29, we signed a purchase agreement with a contingency based on regional placement in Indiana due to employment that I am taking (I should find out in May). The agreement lists that the "purchase contingent upon buyer being notified of" X, Y or Z "work placement" and "no other placement will allow purchase of this home." It is listed on separate sheet entitled "Stipulations" but there is no reference to the original contract, although our (mine and husband's) names are listed.

    Nothing has been built as of yet, and after realizing how much they nickel-and-dime us for every little necessity, we are quickly finding that the house may be beyond our means. In addition, we have discovered new information (pending class-action lawsuits on separate issues brought by prior buyers, warranty issues, etc.) that is causing us to rethink getting involved with this company.

    Our contract has a clause for "Default by Buyer" where it states that we would be responsible for paying $3,000 (up to the completion of the slab after which this fee is $5,000 and higher) should we fail to perform as required by the agreement.

    My questions are:

    Are there any buyer's remorse, cooling-off, or any similar laws that might let us out of this obligation without owing them the $3,000? I know we signed a contract, but this seems a bit excessive as nothing has been put into motion yet.

    Does the stipulation sound as if it is binding? If stipulations are in place, and not fulfilled, is the buyer still responsible for the default fees?

    I would appreciate any advice on the above matter.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Purchase Agreement

    Are there any buyer's remorse, cooling-off, or any similar laws that might let us out of this obligation without owing them the $3,000? I know we signed a contract, but this seems a bit excessive as nothing has been put into motion yet.
    what do you mean nothing has been put in motion. They have spent time with this contract and you and have not sold the lot you have under contract due to your contract.

    No action; I don;t think so.

    Does the stipulation sound as if it is binding?
    with what you have prsented, yes, itis possible the contract is binding but for a true opinion, you should take it to an attorney of your hiring to render an opinion.

    If stipulations are in place, and not fulfilled, is the buyer still responsible for the default fees?
    If you take action to frustrate the sale, you could possibly still be held to the contract and its penalty clauses. In other words, if you make the decision to not take the employment offered, that would be a choice you made and not considered in the contract so the penalties would still apply.

    You need to take the entire contract to an attorney that can actually sit down and read the thing in its entirety for any truly accurate opnion.

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