I signed a contract (in Kentucky) with no contingencies. I was being relocated by my company so in the contract under Finance Contingency it was noted "NA" and a note that says "Buyer has been preapproved and has a guaranteed home sale."

The contract was signed on April 27th and closing is on June 1. I was informed by my company last week that I will not be relocating for probably another 6 months. Since I can not sell my current home I obviously will no longer qualify for another mortgage and simply can not continue with the purchase.

Once the seller (a building contractor) was notified he responded that I "have to buy" the home and that the contract is in force and he does not have to give me my earnest money back.

What can I do?

Were you working with a Realtor??

Who wrote: "Buyer has been preapproved and has a guaranteed home sale."???

Since your circumstance have changed you no longer have a guaranteed home sale you most likely would not quallify for the financing and you should get your earnest money back.

See if your company will get involved in this since they told you that you were being transferred. Maybe they will furnish you a lawyer to write Mr. builder a letter demanding your money back.

If not get one yourself and have him write a letter demanding a refund since you no longer qualify for a loan to buy that house.



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Jim Lee, CRS, ABR, GRI, e-PRO
Realty Executives Associates
Knoxville, Tennessee
http://www.KnoxvilleMLS.com
Jim@KnoxvilleMLS.com
1999 REALTOR of the year, Knoxville Association of REALTORS

I am not an attorney and am not giving you any legal advice. This response is only given for information purposes and should not be construed or substituted for legal advice.

My realtor wrote the statement. She was chosen by the relocation company.

My company did furnish me with a letter but the builder apparently doesn't care. He indicates the contract is between he and I, not my company.

I'll follow your advice on the lawyer. Thanks very much.

My realtor wrote the statement. She was chosen by the relocation company.

My company did furnish me with a letter but the builder apparently doesn't care. He indicates the contract is between he and I, not my company.

I'll follow your advice on the lawyer. Thanks very much.

Heard from Lawyer today. Still not willing to negotiate. How do I get some idea of what the "damages" could be?



[This message has been edited by jimlee (edited 05-10-2004).]

"Originally posted by bgleghorn:
Heard from Lawyer today. Still not willing to negotiate. How do I get some idea of what the "damages" could be?"

"damages"?

How were they "damaged"

Builder still has the house and can still sell it.

He may have theoritically 'lost' a few days marketing time but I don't see any traumatic damages.

You need to get your own lawyer and also to get your company involved.

I believe your Realtor committed an error by putting that statement in the contract. Maybe she was just trying to make your offer look better to the builder.




------------------
Jim Lee, CRS, ABR, GRI, e-PRO
Realty Executives Associates
Knoxville, Tennessee
http://www.KnoxvilleMLS.com
Jim@KnoxvilleMLS.com
1999 REALTOR of the year, Knoxville Association of REALTORS

I am not an attorney and am not giving you any legal advice. This response is only given for information purposes and should not be construed or substituted for legal advice.

[/b][/QUOTE]

"There is an arbitration clause in the contract. What is your personal opinion of my exposure from arbitration? Is there a way to review arbitration rulings on similar circumstances?

You have been a major help - I appreciate it."


[This message has been edited by jimlee (edited 05-11-2004).]

Arbitration is no better or no worse than going to court.

Usually a trained mediator hears both sides of the story and makes a decision.

Your best response is probably something like: "I entered into this agreement in good faith under the belief and condition that my company was immediately transferring me to this area. Now that they have changed their minds I no longer qualify for the mortgage on the builder's house and cannot buy it. I see no reason I should be penalized for a decision made by others and totally outside my control. I'm sorry I could not buy his house but he is perfectly free now to sell it to someone else. My offer was conditioned on my "guaranteed home sale" from my employer referenced in my offer to purchase and which offer I no longer have."

A statement from your company saying you don't have the guaranteed buyout anymore would be VERY helpful.

I believe the statement your Realtor wrote as a note in the financing contingency will be key: ""Buyer has been preapproved and has a guaranteed home sale.". Since you no longer have a "guaranteed home sale.".

------------------
Jim Lee, CRS, ABR, GRI, e-PRO
Realty Executives Associates
Knoxville, Tennessee
http://www.KnoxvilleMLS.com
Jim@KnoxvilleMLS.com
1999 REALTOR of the year, Knoxville Association of REALTORS

I am not an attorney and am not giving you any legal advice. This response is only given for information purposes and should not be construed or substituted for legal advice.

[This message has been edited by jimlee (edited 05-11-2004).]