When buying a new house or building, some may feel buyer’s remorse or feel that the deal they signed is not really what they want. So, what do you do to get out of a new-build contract?
By signing a contract for a new build, you have signed a legally binding contract. As the contract is legally binding, if you do not fulfill your obligations on the contract, you are in breach of the contract. Some extenuating circumstances could allow you to consider the contract null, void, or voidable. Most new build contracts will be legally binding, not null, void, or voidable.
Table of Contents
- Stuck In A New Build Contract – Can I Get Out Of The Contract?
- Steps You Can Take To Try To Get Out Of A Contract
- Related Questions
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Stuck In A New Build Contract – Can I Get Out Of The Contract?
If you’re in a new build contract and suddenly find something else you want to buy, the question you may want to know is, can I get out of the contract? First, you need to understand a few things about your signed contract.
You Signed A Legally Binding Contract
Most home builders, especially those on the market for a long time, fully understand what is or is not considered a legal contract. Some have in-house legal departments that help review all the contracts they sign.
Chances are that if you have signed a contract with the builder that it is a legally binding contract. The first thing you need to understand is that the contract is legally binding, and the builder is not obligated to let you off the hook or out of your contract.
A lot can depend on how far through the building process the builder may be. If the builder has already invested a lot of money and time and has purchased materials and other things for your home, they may not be willing to let you out of the contract.
Carefully Read The Contract’s Fine Print
Most builders write contracts to protect themselves and their companies. That is why most will have a legal team or others review the contracts.
Many new buyers make the mistake of not reading the fine print on their contract or seeking legal advice to help them understand the fine print and the contract’s legality.
If you read your fine print on the contract, there should be some terms as to what the terms would be if you decide to breach the contract. Getting out of a legally signed contract means you want to breach or get out of your contractual obligations.
If you are unsure what those obligations are, get a lawyer to help you read through the contract and fully understand what the contract says your obligations are.
If You Can Prove The Builder Was Not Honest, You Can Have a Case
If the builder was dishonest to you, you might have a case to make the contract voidable. If they confirmed building a particular house for specific square footage but changed the agreement later, you may have a chance to get out of your contract or make it voidable.
You would need to prove this, as most builders will fight this as not just this contract; their reputation is on the line and in question.
You must remember that you and the builder have signed a legally binding contract. You both have obligations to fulfill your part of the contract. If you can show that your builder did not fulfill their part of the contract, you should have a case to get out of it.
We recommend that you get a lawyer to help you navigate this contract’s legal aspects in a situation like this.
Steps You Can Take To Try To Get Out Of A Contract
If you find that you really want to get out of the contract or maybe you need to get out of the contract as your situation has changed, then there are steps and things you can do to try to get out of the contract.
Talk To The Builder
The first thing is to talk to the builder. If you worked with a real estate agent, maybe you could call everyone together, sit down, talk to them, and explain your situation and why you want to get out of the contract.
If it is a contract that you just signed and you put down some earnest money, the builder may say that they allow you out of the contract but will keep the money you put down.
But if the builder is almost through with the building process, has purchased a lot of the raw materials, or has other money invested in the contract, they may not be willing to let you out of the contract.
Try To Sell The Property Before Completed
If your property is in a very competitive housing market, and the area where it is located is in high demand, you may be able to work with your agent to try to sell the property before it is completed.
Generally, this would work if parts of the construction started. And in a case like this, if the buyer knows they can sell the property, they may penalize you and then sell the property to someone else.
But again, this will all depend upon the real estate market and whether the builder wants to do this.
The main thing that most buyers need to understand is when you sign a contract. It is a legally binding contract. So if you get out of the contract, you must either get the builder to agree to allow you out of the contract, or you must show that there is something the builder has done, which is dishonest and why you need to get out of the contract.
Proving they are dishonest may be challenging because most builders will have contracts written to protect them and their companies.
We recommend that you get a lawyer to help you navigate all the legal aspects of this contract, so you know your rights and obligations. In the United
States-specific states and areas may have laws that help the buyer get out of a contract or protect the builder. A local real estate lawyer should be able to help you with this.
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Related Questions
What Happens If You Build On An Easement?
Usually, you can build on an easement if it does not interfere with its purpose. You should seek permission from the person with the easement to ensure there is no issue with the easement and what the easement is intended for. If unsure, you can also seek legal or other professional advice.
Click here to read more about What Happens If You Build On An Easement?
Can You Legally Ban Someone From Your Property?
You can legally ban someone from your property as it is your private property. You should take specific steps to ban someone from your property legally; if that individual continues to enter your property knowingly, they are trespassing. The 4th Amendment allows you to decide who can come on your property.
By clicking here, you can read more about Can You Legally Ban Someone From Your Property?
