Legal Question in Real Estate Law in Florida
Laid off still bound to contract?
Let me start by thinking you for time. I will try to be brief:
Approx may 28,2003 I enter into an agreement to purchase a home from Pulte homes in Miromar Lakes FL. They required 5% down payment of approx 14,700. They required that we qualify for the mortgage during the first 30 days with Pulte mortgage. We gave the deposit and qualified per the contract.
On July 1, 2003 I was notified by my employer American Airlines that I was being laid off effective July 31,2003. I notified Pulte Homes on Jul 3,2003 that we would no longer qualify for the loan. We would not be selling our home in Arkansas, purchasing a new vehicle to replace a vehicle that was totaled and definitely would not qualify for financing at the time of closing. After several conversations they said I was bound by the contract and because of the circumstances they would refund 5,000. They have not broke ground on the home, they have put in for building permits.
Can they keep 9,700 dollars in damages? Can you help?
Thanks again for your time.
2 Answers from Attorneys
Re: Laid off still bound to contract?
Since you probably no longer qualify for the mortgage you should be entitled to your deposit. I would have to read the contract and the mortgage application to be sure. You may call me to discuss further if you wish. Good luck.
Re: Laid off still bound to contract?
Attached to many builder contracts is a Mortgage Addendum and Non-Contingency Addenedum. These need to be read with the contract. Also, most of these contracts have a liquidated damages provision that allows the builder to keep the deposit. There is room to negotiate and some equitable defenses to be raised. Please feel free to send me an email to discuss further.
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