Legal Question in Real Estate Law in Maryland

My daughter and her husband are having a house built in a development. The mortgage has been approved. There is a great chance that they are going to separate now. What happens with the house? If they separate the mortgage will not go through as they need both salaries. Can they get out of the contract? Can they get deposit money back?


Asked on 7/28/14, 7:51 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

This is a contract question that will require review of the specific contract at issue. If the contract is contingent on financing and financing falls through, then the buyer "MAY" be able to walk away without loosing their deposit. However, if there is no such contingency then the buyers may be stuck.

In the absence of contingencies a Seller can usually choose to force the sale, keep the deposit or both. It is unlikely a Seller will want to force a sale if the Buyer(s) cannot pay but it is possible.

Hopefully the buyers had either an agent or an attorney representing their interest who can attempt to negotiate with the Seller/Builder. If not they might want professional help. While I hope this general legal information helps please understand that it doesn't offer any individual legal advice or any type of representation.

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Answered on 7/28/14, 8:15 am


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