Profile picture for GOVIKES28

Rewrite purchase and sale agreement?

    In June, I signed a purchase agreement for a new home from a large, reputable home builder.  My lender locked me in for a rate and I am due to close in Sept.  My lender brought an issue to the home builder.  While looking at the title for the lot, it became clear that the building company did not own the lot that they sold me in June.  Another company owned the land and sold it to the builder.  The underwriter is asking that the purchase agreement be rewritten with the date that the lot was owned by the builder.  
    The builder has some sort of an agreement with the land owning company, the details of which are confidential and they will not disclose.  My builder is refusing to rewrite the contract to satisfy the underwriting of my lender of choice.  They are telling me I need to find a different lender and my lender will not budge on the contract rewrite issue.   
      One other piece:  an addendum to the purchase and sale agreement has the following language included.  I have removed the names of any companies affiliated.
    "HOME BUYER is aware that in the event BUILDER is not in title on the date the purchase and sale agreement is written, this contract will be contingent upon BUILDER purchasing said property, and due to lending guidelines, the contract may be required to be rewritten.  All mutually accepted terms and conditions of the original contract will remain the same."
    What are my legal rights as a buyer at this point?  Can I force the builder to rewrite the contract with some legal pressure?  Can the lender move forward without the rewrite?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 08 2013 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (3)

Best Answer
I would contact a good real estate attorney immediately...This is not an issue for anyone to answer but an attorney!  This is not unusual with builders today! Again an attorney should be handleing this transaction . 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 08 2013
Profile picture for GOVIKES28
Thank you both for your answers.  I believe I am buying it turn-key.  (sorry not super familiar with terminology).  We sat down in June and picked out the model, lot and options we wanted within the subdivision.  I think you are right that they are working with the developer.  My lender tells me that on the date in July when the builder took possession of the lot, they released 4 other lots on the same day to the builder.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 08 2013
I agree with Rosemarie, contact a real estate attorney I am sure this can be worked out.  Are buying this property on a construction loan or  turn key?  Most likely the builder is working with a developer who provides him the lots on a release basis and he pays him when he sells the property. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 08 2013
 
Related Questions
How much (percentage) can you start out to negotiate?
Profile picture for Jared LeBouf
Latest answer by Jared LeBouf
3 minutes ago | 5 answers
why are your listing out dated with what the realtors list and what is bank owned?
Profile picture for wetdawgs
Latest answer by wetdawgs
12 minutes ago | 1 answers
How much of an offer is too low on a house that keeps dropping in price?
Profile picture for Dean Paul Dominguez
Latest answer by Dean Paul Dominguez
43 minutes ago | 6 answers
If you are a real estate agent representing yourself can you decline your portion of the commission?
Profile picture for Connie Schuermeyer
Latest answer by Connie Schuermeyer
44 minutes ago | 3 answers
Buying New Home in NJ
Profile picture for Spencer Adamson
Latest answer by Spencer Adamson
1 hour 16 minutes ago | 1 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.