Profile picture for serven80

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?
  • September 08 2013 - US
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Answers (3)

Best Answer

Profile picture for Rosemarie Villanova
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 . 
  • September 08 2013
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Profile picture for serven80
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.
  • September 08 2013
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Profile picture for Ofe Polack
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. 
  • September 08 2013
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