I received a 'panic-call' from a frenzied mother the other day. Her adult child had wandered into a new home community and signed a contract to purchase a home. A phone conversation was completed with the builder's lender at which a conditional loan approval was given to the potential buyer based on income from a job she was most likely going to get when she finished her schooling in the next 6 weeks.
The adult daughter has since learned she is pregnant. She will have 2 babies under 18 months old and will not be able to afford the childcare on her minimal income plus a house payment. She wants out of the home. Mom wants me to give her advise on how to get her daughter out of this contract.
It gets better. This buyer only put down $200 earnest money and agreed in writing to pay the remainder of $800 within 30 days. That agreement was signed approx 60 days ago and the additional monies have not been paid. The buyer is already in breach of contract. The contract states if any breach on the part of the buyer occurs and the buyer is unable or unwilling to fulfill the terms as promised the remedy shall be 10% of the base purchase price of the home plus 50% of any upgrades.
Now I am not a lawyer and wasn't consulted before this young lady decided to go looking at homes. My advise to this Panicked mother was to contact a real estate attorney. However, had this been my client - I would have had one of the best known Real Estate attorneys in the state of Arizona to consult with as my broker has this lawyer on retainer. As my client, this young lady would more than likely be able to navigate her way out of this contract and would have done so with much less stress than she is in now enduring and will continue to endure. There is more to our value then just driving people to new home developments when representing a buyer on a new home - Get the word out!!
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