Can I get out of a new build purchase agreement

[Caroline S.]

Hi Everyone, i posted this in another category, but i wasnt sure if it is the correct one, so I'm posting here in the General Real Estate category. I apologize if you see this post twice. about a month ago, i signed a purchase agreement with a builder for a house to be built and completed by Feb/March 2018. The house will be located in Fredericksburg VA. I put down $3000 when I signed. $3500 is due tomorrow, and another $3500 due in 1 month, which makes a total of $10,000 in earnest money. Here is my question: If I wanted to back out of this contract for whatever reason, what are my losses most likely be? Will I lose the 3000 or will they make me pay the entire 10,000 earnest money? or will they make me buy the house. The purchase agreement is vague and makes no mention of default, it only mentions the dates that each installment is due. I'm sure there are situations where people have gotten cold feet or have unforeseen circumstances, or whatever the case may be. My issue is the commute to work is going to be killer, an average of 1.5 to 2 hours each way from F'burg to Fairfax by car or train. Initially, I thought I'd sacrifice my time for greener spaces and larger spaces but now I'm thinking I may not be able to handle it. I'm seriously having doubts. I've heard of people backing out right before closing or during inspection. So I am wondering if I have a better chance of backing out since it is way early in the process -- only 3000 of 10,000 has been paid, the contract has not yet been ratified, no pulling of building permits, and of course we are way ahead of breaking ground. Anyone have any ideas of the likely loss i would have to endure? i appreciate all input. Thank you.

[Khaled Helmi]

@CarolineS Without looking at the contract (feel free to post if it is appropriate) we wont be able to give you any more than general input.

Just based on my experience, you'd be out whatever installments you've paid BUT not those you havent paid (again read the language carefully), and I couldn't imagine a situation where you'd be FORCED to buy the construction - I highly doubt you'd get any loans with that scenario LOL.  But what i'd do is talk to the builder, as if its early in the process, they may be open to letting you keep your initial $3000 (or a portion of it) especially if you're straight forward.

What I would NOT do is decide on backing out and just going MIA with the builder.  If I was the builder that'd piss me off bigtime and i'd try to go after as much of the 10k deposit as I could.  Communicate and let them know your situation and why you're backing out and try negotiate with them on your initial 3k - i'd probably start with asking their permission to back out and simply splitting the 3k ($1500 to them) for their lost time.

Just my 2 cents and i'm not a lawyer so you may want to shell out a few hundred bucks for a consult IF the builder doesnt let you out with a portion of your initial deposit.  

God Bless and keep us updated!