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Rescinding during builder review.please help!!

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klyncher

Member
What is the name of your state?What is the name of your state?NJ
we're in the process of purchasing a new home in a new development.We signed 3/30/05, changed to a larger lot/location and changed home model due to lack of guidance/information from the sales mgr. We recently (2nd time)requested to change lots realizing after the roads were paved that the electrical tension wires were substantially closer (20-30 ft) to our property line and that the lot dimensions for usable space (wooded lot)were not as the sales manager had claimed. THey agreed to allow us to change lots with the condition that we would pay at the higher new home price which is 30k higher than the original price we signed 4-5 months ago. According to the sales mgr's reasoning was that they would lose money by transferring us to another lot. Incredulous and unacceptable because whomever buys our lot would have to pay the new higher price anyway.
Her response was the last straw to numerous issues we experienced with the builder and mgr who we feel we cant trust.
We want to rescind immediately from the contract and request our deposit money back( 40k without any interest earnings to us) which they've held all this time without even digging a hole to build yet.
My attorney is away on vacation and his partner whom we dont feel comfortable with, says he would have to do research to find a loophole in the contract to rescind,give specific reasons/complaints and charge us additional monies to do that after we already paid $425 (half of the fee for closing) and all they've done so far is review our contract and sent a counter offer to which we havent received a response back.
Question: Can we rescind during the builder's review process or are we bound to the contract even if the builder hasnt sent back the contract or responded yet?.
My attorney's partner claims the builder could pre-date the contract and I would be legally bound. I feel that's an extreme method to keep contractually bound to the purchase.
Because of time constraints, we asked lawyer send a basic/plain rescission letter and we would later follow up with the details/reasons for rescinding after our original lawyer returns. We dont know if that's a good idea to send 2 separate letters or wait till our attorney returns from vacation and send one,however we are fearfull that the builder might beat us to his returning from his vacation with the contract response and we would then be stuck with this builder.
Please help. need legal info/advice . Thanks all!!
 


klyncher

Member
URGENT HELP is needed!!!!

Update...
my attorney's partner is stating that the rescission period expired back during his firm's review.HE sent the builder a rescission letter stating the reason for cancelling as the misinterpretation of the tension wires distance from the property line. HE says although we changed the terms or counteroffered, it didnt matter and he also adviced that there is also a paragraph in the contract which demands mediation in lieu of rescinding, but didnt have time to explain due to his pending vacation. Anyone knows anything about that?. I am hearing confliction information on this point but dont know who is correct. I cant wait till my original attorney returns from vacation. We really dont want to cancel our contract we really would prefer to change lots and proceed, but we're also concerned about the delay in builder's return of our contract and holding our deposit for so long.
I called the NJ real estate Commission but they dont offer legal advice but also mentioned they understand the law as, the attorney review period extends once you change the terms or counteroffer without yet getting a response. Does anyone know what agency or state office I can call to get this cleared. THanks all for any advice or opinions.
URGENT HELP is needed please!!!!!
Desperate Buyer!!
 

JETX

Senior Member
klyncher said:
Can we rescind during the builder's review process or are we bound to the contract
Of course, no one can answer your question without a FULL review of all the documents and issues.... but I will offer an educated guess that NO, you cannot rescind a valid contract.

even if the builder hasnt sent back the contract or responded yet?
Not relevant. As long as you signed the contract, it is valid against you.

My attorney's partner claims the builder could pre-date the contract and I would be legally bound. I feel that's an extreme method to keep contractually bound to the purchase.
Unless your signed agreement had a 'time element', there is no requirement to pre-date anything. The seller doesn't even have to sign the agreement at all to make it binding against YOU.
The signature by the seller would only bind him.... to you.
 

klyncher

Member
I've also been told that once you change the terms of the contract, which we did during our attorney review, then the 3 day review process is extended until you receive a response of either acceptance or refusal to accept new terms of contract. True???? I would think that if the contract is in force, that would mean they've agreed to our conditions/requests.We made 3 legal changes on the contract and we havent received the contract back for over 4 months from the builder. I also thought that this issue (rescinding) would be state generalized and based on the state's real estate regulatory laws. I didnt realized that it could depend on the details/specifics of my contract. ANy advice please!!
 

HomeGuru

Senior Member
klyncher said:
I've also been told that once you change the terms of the contract, which we did during our attorney review, then the 3 day review process is extended until you receive a response of either acceptance or refusal to accept new terms of contract. True???? I would think that if the contract is in force, that would mean they've agreed to our conditions/requests.We made 3 legal changes on the contract and we havent received the contract back for over 4 months from the builder. I also thought that this issue (rescinding) would be state generalized and based on the state's real estate regulatory laws. I didnt realized that it could depend on the details/specifics of my contract. ANy advice please!!


**A: Advice- hire an attorney to review your contract.
 

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