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woozymoo

Want out of contract

woozymoo
2 years ago

We signed a contact with a commercial builder in January. Our loan was approved with flying colors as we have excel credit and terrific jobs. They were supposed to have the house done in July but they let the build permit submitting “fall through the cracks” as they told us, and now they won’t be done with the house until January 2022. This won’t work for us as we needed to be able to move sooner than that due to several factors. We would like to get out of the deal now and pursue other options. They have still not started the house build but due to this market they told us the value has already increased $50k. We have $13k in earnest money which we can afford to walk away from. After looking closer at our contract it says something like if we walk away we have to pay 15% of the loan on top of that. Has anyone ever seen such a thing? How do you pay 15% if you don’t have a loan? 🤔

So question: what happens if we quit our jobs and are no longer approved for the loan? Can we walk away with only losing the earnest money or will we be on the hook for the 15% still? And if we don’t have 15% to give them, then what?

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