Legal Question in Real Estate Law in California
purchase agreement cancellation due to marriage seperation
My spouse and I signed a contract to purchase a new home. We gave $3,000 for the security deposit and $2,000 for upgrades. It would take about 6 months for the home to be built and therefore we never applied for the loan. 1 month before the builder completed the home, my spouse and I separated (I will be filling for a divorce.) A letter was mailed to the builder/seller to let them know we would not purchase the home since my spouse and I had separated and the separation would be lead to a divorce. The builder/seller responded in writing that the security deposit and the money we gave for upgrades would not be returned. On the contract it said that the security deposit would be kept, if we cancelled; unless the death of the buyer occurred or legal marriage separation between buyers�I�m confused. Please Help! Thanks.
2 Answers from Attorneys
Re: purchase agreement cancellation due to marriage seperation
Whether the builder is entitled to retian your deposit depends entirely upon what the purchase documents you signed say. You should probably take all of your documents to an attorney in your area whose practice emphasizes real estate law for review. Only after a complete review of your purchase documents will an attorney be able to determine what your rights and obligations are.
If it turns out that there is a provision that allows the buyer (you and your soon-to-be ex-spouse) to back out of the deal due to separation or divorce, the attorney can then write to the builder in an attempt to obtain a refund. If the builder ultimately refuses to return your money, you may have to sue the builder.
Re: purchase agreement cancellation due to marriage seperation
I agree with the above, but would like to point out that there is a big difference between parties separating prior to filing a petition for dissolution, and a legal separation. A legal separation does not end a marriage or domestic partnership. You can't marry or enter into a partnership with someone else if you are legally separated (and not divorced). A legal separation is for couples that do not want to get divorced but want to live apart and decide on money, property, and parenting issues. Couples sometimes prefer separation for religious reasons.
Very truly yours,
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