Legal Question in Real Estate Law in Maryland
Selling a new home contract
I signed a contract with a builder to build a new townhouse in Frederick, MD. Personal circumstances have led my wife and me to back out of the contract. If we back out, we lose money. The value of the area has increased dramatically and I'd like to sell the contract to someone else. Is it possible to just sell a contract with the price locked in?
3 Answers from Attorneys
Re: Selling a new home contract
You must consult your sales contract to determine if you have the right to assign it to a third party. Most contracts for new homes are prepared by the developer, and prohibit you from doing this without the approval of the developer. In a rising-price market, where the developer could probably resell the property at a higher price, it's unlikely that he'll agree to your flipping the contract.
Re: Selling a new home contract
As Mr.Sher said, if the contract has a provision precluding assignments, it is not assignable. However, you may be able to sign a contract to sell the property concurrently with buying it, effectively doing the same thing (although there may be tax consequences). You need to see a lawyer who can advise you of the best strategy.
Re: Selling a new home contract
If you have a ready buyer then a contract can be made so that you can convey title upon your purchase. Your contract of sale may have stipulation which should be reviewed by an attorney. Recordation service will be needed.
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