Walking away from house Contract – Lennar’s
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Walking away from house Contract – Lennar’s
I have booked a house with Lennar’s back in August 2018, which is still under
construction and closing is scheduled somewhere around March 1st week. I have
paid some 7k so far. But now I have to relocate to the different city.
What are the options I have?
1. Can I walk away from this contract?
2. How much more they might ask me.
3. Could this attract a lawsuit against me?
4. What all other troubles it might cause me in future?
Asked on December 16, 2018 under Real Estate Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Based on what you write, you don't have any options to walk from the contract. Your contractual obligations are in no way affected by changes in your life--that you need to relocate is not grounds to escape the contract. You can only get of the contract if:
1) There is some contingency or provision in the contract allowing you out of it at this time or under these circumstances and you fully conply with its requirements.
2) The other side breaches the contract--violates their obligations--in some material or important way.
3) The other side committed fraud--lied about something important--to get you to enter into the contract.
Otherwise, you are locked in.
As for your potential liability: unless there is some provision in the contract limiting your liability to what you have paid or your deposit (which is not uncommon in home-related contracts), you are potentially liable for what you agreed to pay (the full purchase price) less any savings the builder realizes (i.e. any amounts they don't have to spend if you breach the contract) or any amounts they get from selling the home to another--but if they have to sell at a discount to get someone to buy, that is legal, and they can seek the extra from you. (And also: if they haven't managed to sell it whenever they sue you, if they do pursue you, they can seek the full amount--you only get a "credit" for them selling it if they do in fact sell prior to them getting you in court.)
Walking on the contract will hurt your credit history. And if they do sue you and win, they could try to put a lien on any real estate to buy in the new city, or garnish your wages.
Unless there is a limitation on your liability in the contract, consider buying the home, then reselling it or renting it out.
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