Legal Question in Real Estate Law in Missouri

I am interested in a property lot, in a new subdivision in Missouri. I asked the real Estate company currently sitting on the development about buying a lot and not building for 2 years and was told no, twice, because the bank would not allow it. I contacted the bank directly and asked for permission to buy a lot and not build for two years and was given permission in writting to purchase the lot I chose for a fixed price of $40K and not be obligated to begin construction for 2 years. Immeidatly the real estate agent and the "approved builder" tried to bum rush me into a build contract for 2 years out. I informed the builder that I am interested in working with him, but have no intention of paying a commission on a build job that I am designing and that won't take place for 2 years. He forwarded this e-mail to the real estate agent who subsequemntly informed me that I am obligated to pay them a commission based on my eventual build, due to an agreement with their firm and the developer. I have argued with both that I am only buying a lot and not a finished house or design, and should pay a commisison on the lot only and cannot be forced to committ to a payment for a future build job such as this. I am being told that this is just the way it is. Take it or leave it, essentially. Do I have to agree to a future commission in order to buy simply a lot in this neighborhood that I will have a builder construct a home on in 2 years or can I force them to sell me the lot without any other restrictions accept the HOA that I currently have from them? The HOA document does not mention commissions or build job contracts etc.


Asked on 4/24/12, 1:48 pm

1 Answer from Attorneys
Michael R. Nack Michael R. Nack, Attorney at Law

Without doing any legal research, my gut feeling is that the developer owns the property that he has divided into lots, and the owner of the porperty would genenerally have the right to dictate the terms of the sale. I am not aware of any law that gives you the right to buy just an undeveloped lot and avoid the developer's improvent of the lot (by building) and the developer's right to make a commission on the building. Of course, if I was hired to do the investigation nd the legal research needed to provide you with a formal legal opinion concerning your rights and duties, my response to your question could be different. Is it worth it to you to hire an attorney to provide you with that type of legal service, or would it be better for you to find some other property to buy and then subsequently build on?

Read more
Answered on 4/29/12, 9:31 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Missouri