Legal Question in Real Estate Law in Virginia

New Home Contract

I signed a contract to build a new home in Prince William County Virginia. Closing is set for the end of November. The price of the home has dropped $100,000 since I signed the contract. Am I required to pay the higher amount? I have a house to sell (no home sale contingency). My house was listed 6 months ago and has since been reduced to about $80,000 under market. I can't afford both homes? Can I back out of the new home contract?


Asked on 9/25/06, 11:29 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: New Home Contract

You can "back out of the new home contract" only if permitted to do so by the terms of the contract. (The fact that the market value of the home apparently has drastically dropped is irrelevant with respect to the enforceability of the contract.)

You would be well advised to see a lawyer about this if you have not already done so who may be able to advise you on a way to withdraw from the contract without penalty.

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Answered on 10/02/06, 7:44 pm


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