Can I back out of a new home that I am purchasing and is being built? I have not closed on it yet.?

get a lawyer to tell you if you feel very strongly on it, and count on losing at least the $3000

You have signed a contract with a seller to purchase the house being built. Even though you have not closed on the transaction, you signed an intent that is as good as you purchasing the house.

There are certain conditions and contingencies that would need to be met by the yourself and the seller.

You now want to back out of the contract you signed.

In breaching the contract there is normally a financial penalty. You will probably lose the $3000 deposit.

There is also a possibility that you could be sued. The seller cease to advertise the house once you signed the contract, and could be at a financial loss. You could be sued for this financial loss.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Check the contract and look for weasel clauses aka contingencies that you can exploit (ie contract is contingent on financing or something). If the contract you signed was provided by the builder then you can expect there will be severe penalties to doing this - and no weasel clauses.

You cannot get out without financial penalty. The least that can happen is you will lose the money you gave for the 'good faith' deposit. reneging on your word is NOT an act of good faith.

The worst that can happen is that you are sued. You cannot be forced to complete the purchase. However, you can have a judgment against you for the full amount of the loss suffered by the seller, if they have to sell it to someone else and they end up with less than what you agreed to pay.

The law that protects the seller from you bailing out because you found something you like more is the same law that protects you from the seller bailing out because they got a better offer from someone else after your contract was signed.

You've got a signed contract. The least thing that can happen is you lose your $3000.00. The worst thing is that you get sued and are forced to buy it. Especially with new construction since they are spending money now to do plans, build etc. Do you have a copy of what you signed? It should tell you in there.

you need to read your contract, you will no doubt lose the security payment

Read your contract. At the very least you will forfeit your $3000.

You need to read your contract. You may only forfeit the $3k. You may have other penalties they can enforce. It's all about what you signed though.

talk to the builder as soon as you can. if the market is hot and there is a lot of interest in the homes they are building, they may possibly let you out of the deal and refund all or part of your good faith deposit. The $3K good faith deposit usually is nonrefundable, so you may end up losing it if you change your mind. The amount covers the time and expense the builder incurs if you back out and they have to find another buyer.

You will forfeit the $3000 - - - don't know if there are any other penalties in your contract: you'll have to read that yourself.