Updated over 7 years ago on . Most recent reply
Texas Quad-Plex... a scam or normal for new construction?
We found a quad- plex in Texas that we are interested in purchasing. The property is only land now, with plans for completion between November 2018 and January 2019. My only concern is this part of the contract where our earnest money is released to the seller.
"Earnest Money: $100,000 is herewith tendered and is to be deposited and Earnest Money with (title company), upon execution of this contract by both parties. Upon execution hereof, said Earnest Money shall be released directly to Seller, for purposes of construction and land acquisition for the benefit of Buyer. The Earnest Money shall be applied against the Purchase Price of the Initial Closing. "
Is this normal for new construction? How can we make sure the seller doesn't run with our money? Just curious.....
