Profile picture for user7642224

Upgrade Money in Real Estate Sales Contract

In buying a home process (building a home), the seller (the builder) take some money if the upgrade is over 10K. In my question, say $4000 deposit. Will the seller have a rights to keep the upgrade money if the home loan is not approved?
  • March 31 2014 - Cypress
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (4)

Best Answer

Profile picture for Owens Realty Group
Any funds you pay toward upgrades outside of earnest money will most likely not be refunded. The builder is collecting the funds from you to add in your specific upgrades to protect them in the event that you do not obtain your loan. I would work with your Realtor and Mortgage Broker to make sure that you are very certain about your financing before I would write a check to the builder without knowing if it is refundable or not. Best of luck!
  • March 31 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
How long do you have for upgrades?   Contact the builder for the real answer to this question.  (Phone, E-mail, text?)    As the building process progresses, upgrades will become more expensive and go into "change control".  
  • March 31 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for USMortgageRanger
And i am sure you also agreed to use the builder financing with higher rates and compensation from the builder to the mortgage company and title company. Why did you not seek financing and get a good agent to assist  you with your purchase. They may let you out of the contract if you act right away and i am sure its written in the builders favor. I would call then immediately and back out them put it in writing and send it via register mail with receipt required. I can be reach via my profile.
  • March 31 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user7642224
Thank you, Mr. Owens. How many days I have to change my upgrade options? I signed a sales contract yesterday and I would like to change some upgrade options. Unfortunately, I flew out-of-town last night!
  • March 31 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.