Hello,

We recently started the paperwork for a new house in Sacramento, CA being built by SHEA homes. After the papers were signed, we paid a deposit of $10,000 to the builder. Due to an unforeseen event we had to back out of the deal. The builder is refusing to pay the initial deposit back to us. Is there anything that can be done?

Hello reply:

The devil is in the details. Your "papers" should tell you if you have recourse or not. What does it say about non performance? They probably don't say that you can back out without a penalty. If I was a builder, I wouldn't give my buyers an out.

Why? Well, when I sell a house to somebody, it's not available to anybody else. During the time it's off the market, I could be losing a REAL sale, so I should be compensated. That's what the deposit is for, and it's quite appropriate.

This contract was written for builder's protection. Next time you enter into one of these, write it so YOU are protected.

excon

Instead of, or at least before) asking here, you should be reading your contract. The contract specifies whether the deposit is refundable or not and if so, under what conditions.

So we can't tell you what can be done without knowing the terms of the contract. Most likely nothing can be done since that's the purpose of a deposit, it holds your interest in the property and protects the seller in case you back out.

You do have the option of finding someone to buy it from you.

Quote:

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Originally Posted by reply2navi

Hello,

We recently started the paperwork for a new house in Sacramento, CA being built by SHEA homes. After the papers were signed, we paid a deposit of $10,000 to the builder. Due to an unforeseen event we had to back out of the deal. The builder is refusing to pay the initial deposit back to us. Is there anything that can be done??

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The "new construction" contract is ALWAYS slanted to the builder... there is little recourse outside the contract options.