Anyone know a good real estate lawyer?
- Thread starter JefferyT
- Start date
CalBears96
Well-known member
This is my experience so far:
Lennar (Serrano Summit) would refund deposit if you tried your best but failed to secure a loan.
Irvine Pacific stated that deposit is NON-REFUNDABLE regardless of the situation.
Lennar (Serrano Summit) would refund deposit if you tried your best but failed to secure a loan.
Irvine Pacific stated that deposit is NON-REFUNDABLE regardless of the situation.
irvinebullhousing
Well-known member
Cold feet or your financial situation changes for better/worse, and can?t buy?
If you can demonstrate financial hardship, you can walk away with your deposit.
If you can demonstrate financial hardship, you can walk away with your deposit.
sgip
Well-known member
It's not really a case of finding a good lawyer, but making certain you have a good case first. It may not be in your better interests here to give too many details, so my post is more of a general overview than specific to the original posters circumstance. Remember that sometimes there is mercy given based on "The Ask" and the circumstances even when the builder may say the deposit is always forfeit.
The suggestion of a substitute buyer is a good one. Most builders will be OK with this arrangement, providing they don't crash and burn as well. You may have to close with the builder on a Monday at $1.x, then re-sell to the other buyer on a Wednesday at $1.050, closing on the following Monday and your obligation will be cleared. In this scenario, one would be wise to use the same Title company since getting data using a less expensive Title or Escrow company is practically begging for a delay. Remember that your 1st payment won't be until another 30-45 days into the future so you have time to get out of this obligation with your deposit intact. Any builder re-sale restrictions are 100 percent unenforceable so don't worry about those.
From what I've seen if one has a contract with IP, an attorney will run at the gates doing their best LEEERROOOOY JENKINS!!! impression, and promptly get kneecapped. Better to know now than to realize this far down the road when better choices could have been made.
What makes a good case for refunding a deposit?
1) Death of co-buyer (not death of non-occupant co-borrower)
2) Documented OUT OF STATE employment relocation. In state relocation? You're out of luck.
What doesn't make a good case for a deposit refund?
A) Loan turn down/Bad Rates/Unfavorable terms - That's not the builders fault.
B) Contingency not selling or not getting enough equity out - See above.
C) Loss of down payment in stock market/401k/gift from someone - also, see above.
D) Better lot - Substitute buyer is best.
E) New phases getting concessions/pricing breaks - That's capitalism, and not reason alone for quitting a contract.
F) Uncertain employment, loss of job. Sad, not a good thing, but not something the builder is at fault with.
G) Construction Defects - That's a question for binding arbitration as per the contract.
H) Undisclosed health hazards - Really? Here in California? The most disclosure happy place on earth? Not going to win with that.
I) Inability to insure. Cal Fair Plan, while expensive, still is an option.
J) Price, with options, now outside of budget. There are plenty of financing options to consider. To quote Mick and Keith "You can't always get what you want, but if you try sometime you will find you get what you need" - and no builder refund will be given.
This list can go on and on. I'd encourage others to tell their experience in getting a deposit back from a builder. Some will work with you if you work with them first. If you pull the "my attorney Saul Goodman will be in touch.." card, don't expect a favorable outcome via Slippin Jimmy on your behalf.
My .02c
The suggestion of a substitute buyer is a good one. Most builders will be OK with this arrangement, providing they don't crash and burn as well. You may have to close with the builder on a Monday at $1.x, then re-sell to the other buyer on a Wednesday at $1.050, closing on the following Monday and your obligation will be cleared. In this scenario, one would be wise to use the same Title company since getting data using a less expensive Title or Escrow company is practically begging for a delay. Remember that your 1st payment won't be until another 30-45 days into the future so you have time to get out of this obligation with your deposit intact. Any builder re-sale restrictions are 100 percent unenforceable so don't worry about those.
From what I've seen if one has a contract with IP, an attorney will run at the gates doing their best LEEERROOOOY JENKINS!!! impression, and promptly get kneecapped. Better to know now than to realize this far down the road when better choices could have been made.
What makes a good case for refunding a deposit?
1) Death of co-buyer (not death of non-occupant co-borrower)
2) Documented OUT OF STATE employment relocation. In state relocation? You're out of luck.
What doesn't make a good case for a deposit refund?
A) Loan turn down/Bad Rates/Unfavorable terms - That's not the builders fault.
B) Contingency not selling or not getting enough equity out - See above.
C) Loss of down payment in stock market/401k/gift from someone - also, see above.
D) Better lot - Substitute buyer is best.
E) New phases getting concessions/pricing breaks - That's capitalism, and not reason alone for quitting a contract.
F) Uncertain employment, loss of job. Sad, not a good thing, but not something the builder is at fault with.
G) Construction Defects - That's a question for binding arbitration as per the contract.
H) Undisclosed health hazards - Really? Here in California? The most disclosure happy place on earth? Not going to win with that.
I) Inability to insure. Cal Fair Plan, while expensive, still is an option.
J) Price, with options, now outside of budget. There are plenty of financing options to consider. To quote Mick and Keith "You can't always get what you want, but if you try sometime you will find you get what you need" - and no builder refund will be given.
This list can go on and on. I'd encourage others to tell their experience in getting a deposit back from a builder. Some will work with you if you work with them first. If you pull the "my attorney Saul Goodman will be in touch.." card, don't expect a favorable outcome via Slippin Jimmy on your behalf.
My .02c
irvinebullhousing
Well-known member
Soylent Green Is People said:
Priceless list here.
The Motor Court Company
Well-known member
I don't see myself buying new builds again but this is something worth saving.
Soylent Green Is People said:
talkirvine
Member
So a refund for out of state relocation, but no refund for losing jobs?
Soylent Green Is People said:
sgip
Well-known member
People can fake a job loss. I've seen it done. Also, in this environment, a new job can be had in a relatively short time. There are also non QM loans that don't ask questions about employment.
If the company gave the State a WARN Notice, that might be enough to prove job loss. WARN Notices are given when a company is going to have a sizeable layoff round ahead. Builder Earnest Money Deposit refunding again can be influenced by "The Ask" and the circumstances.
Tough situation? Of course. Are there solutions? Yes.
If the company gave the State a WARN Notice, that might be enough to prove job loss. WARN Notices are given when a company is going to have a sizeable layoff round ahead. Builder Earnest Money Deposit refunding again can be influenced by "The Ask" and the circumstances.
Tough situation? Of course. Are there solutions? Yes.
IP actually gives you a 30 day period from signing to get conditional loan approval. If you fail within that period (given your best efforts) and notify them you can get your deposit back. If that period passes, then you?re out of luck whether you can get approved or fail to qualify.
CalBears96 said:
CalBears96
Well-known member
Yousr said:
I don't remember our sales lady mentioning this to us. However, considering that you can't even get on the priority list unless you obtained a pre-approval letter from a bank, and you would have to keep updating your pre-approved amount as housing price increases to stay on the priority list, I don't think this would apply.
talkirvine
Member
Thanks. That makes sense to me now.
Soylent Green Is People said:
talkirvine
Member
You can bring a lawyer in arbitration. Mediation is when a lawyer is not involved.
Yousr said:
Conditional approval is different from pre-approval. You get pre-approved without any serious underwriting. It?s very plausible to get denied a conditional approval once they take a deep dive into your finances.
The reason they don?t mention it to you at the sales office is that 30 days is pretty much nothing. They go by so fast. Any serious bank will take 3-4 weeks to provide a conditional approval. I got mine after the 30 days period passed, which means at that point, a rejection letter was no grounds to reclaim the deposit. Anyway, that?s how the Fresco sale?s lady explained it to me
The reason they don?t mention it to you at the sales office is that 30 days is pretty much nothing. They go by so fast. Any serious bank will take 3-4 weeks to provide a conditional approval. I got mine after the 30 days period passed, which means at that point, a rejection letter was no grounds to reclaim the deposit. Anyway, that?s how the Fresco sale?s lady explained it to me
CalBears96 said:
This is wrong. You should have an attorney for mediations and arbitrations. It is only in small claims court where lawyers are not involved.
Mediation is basically a settlement conference where the two sides work with a neutral mediator to try to reach an agreement. However, neither side is obligated to agree to a settlement. Arbitration is basically litigation but in a private forum instead of in court. With arbitration, there will be a final decision that usually binds the parties. You're going to want an attorney in either situation.
Mediation is basically a settlement conference where the two sides work with a neutral mediator to try to reach an agreement. However, neither side is obligated to agree to a settlement. Arbitration is basically litigation but in a private forum instead of in court. With arbitration, there will be a final decision that usually binds the parties. You're going to want an attorney in either situation.
talkirvine said: