Legal Question in Real Estate Law in California

Home purchase question

I'm planning on purchasing a house that is in the process of being built right now. I'm on reservation status for a specified lot and model and have put $5K down as a deposit.

The builder, John Laing Homes, wants me to sign an addendum to the purchase agreement regarding ''Anti-Speculation And Use As Principal Residence''. What this addendum does is require me to owner-occupant in this residence for at least one year. The problem is I want to lease this property ASAP. Is the addendum legal? If I want to be a non-owner occupied buyer then I'll pay the higher interest rate with my lender. Why should the seller care what I do with this property as long as they receive their money? I don't want to sign this addendum, please advise.


Asked on 10/15/05, 10:59 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Home purchase question

The seller cares because if everyone was speculating and wanted to use the house as a rental property, then there would be a subdivision of renters rather than homeowners, which would bring the value down and make it more difficult for future buyers to finance.

And, yes, they can discriminate in this manner, because speculators and landlords are not a protected class against discrimination.

Read more
Answered on 10/16/05, 12:55 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California