Construction Contract

Dolech

Hello i signed a contract to buy a house pre construction. I left 5000 deposit of earnest money paid and am scheduled to pay another 5000 on march 11. I want to cancel my contract , is there any way i could do this , things came up and i cant buy the house. I signed paperwork on feb 6 2007 . Can someone please help me and let me know my options.
Thanks

Ed the Roofer

That is more of a question for your local attorney, familiar with your regions laws instead of seeking a contractors advice.

It will depend on what is written in your contract.

Ed

Mud Master

All legal contracts have 3 business days to be cancelled with no repercussions, after that I don't know.

Like Ed said, talk to your lawyer.

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Ed the Roofer

There are exceptions to the 3 day rule. I know for sure that an emergency situation qualifies.

Now, define the emergency situation. Duh.

I do not believe that it is legal to have the homeowner waive the 3 day right to rescind law.

BUT!!! If they do not sign the contract at their home, that 3 day rule does not apply.

The law is intended to prevent shady contractors from hurriedly hustling a homeowner into an agreement that they otherwise would not have made an obligation to enter. I have always questioned the rationale behind this rule, when it was the homeowner in the first place who initiated the contact with the contractor. Obviously, this does not necessarily fit the description of what the law was implemented for.

I am sure that there are other loop holes for this rule, but a "Construction" attorney would be best suited to answer the local interpretation of how they would apply.

Ed

Mud Master

I am not sure, I mean I have an attorney that specializes in construction law who i've used for years to help with the structure and wording of my contract, and small legal disputs, nothing major. But when ya get on a $60,000.00 job your gonna want to make sure everything is air tight!

I've never asked about exceptions to the 3 day rule, cause i've never had to really. only once did someone opt out of a contract, which come to find out later was supposed to be paid with a settlement from another contractor she had sued for "stealing"(which in reality the stealing she was refering to was actually the money he had been paid for, for the work he had already done). Come to find out she did it to 3 contractors prior to me, she got the work done, than found something she didnt like and bullied them into getting her money back, plus more. She threatened to take me to court and pay for damages of things i've never heard of or even knew were in the house! She sent me harrassing messages and like 10 faxes threatening and threatening to take me if I didn't pay. I guess once she figured out I wasn't going to respond or pay for anything and allow her to bully me, She left me alone.

**YET ANOTHER REASON I HATE AND WILL NOT DO HOME IMPROVEMENT.**

However, at $350.00/hour and a $5500.00 retainer, I don't ever want to have to use him in any legal Battle. lol.

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Ed the Roofer

I looked it up. There are potential exclusions from the 3 day right to cancel. Also, there is a Federal and also, in most states, a state version of the 3 day rule. The states version takes precedence, but if you did substantially meet the Federal guidelines, that can be considered in your favor.

The main exception to the rule is foe one of the need for an immediate impending emergency. Example: A tree limb fell on your roof and the forecast for rain is imminent for the next day. The HO must sign a seperate waiver which clearly outlines the emergency situation and the immediate need for repairs which, if not undertaken, would cause additional damages.

As always, things vary by jurisdiction, so still consult with an experienced attorney when in doubt. The other exceptions had to do with very small sum contract amounts varying from a total of $ 25.00 tp $ 100.00.

P.S. I also discovered for legal purposes, that Saturdays are to be considered on of the 3 days in the count down. I thought that was only if you were open to the public at your office on Saturdays.

Ed

Mud Master

Hmm..always good to know. I wrote it down in my neverending Rules and Regulation file.

Thanks Ed!

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Ed the Roofer

Mud,

There is much more, but I tried to be generalized regarding what was the common theme I discovered.

If the HO comes to your office to sign the contract, then the 3 day does not apply.

Google: Exclusions to 3 day right to rescind contract (or remodeling contract) and then add your state if you want to try to get more specific.

Also, the info should be readily available on each states attorney generals website, state specific for their interpretations in addition to the Federal guidelines.

Ed

Mud Master

thats great to know.

As I said though, I don't do any home improvement work. I just can't stand it to be honest. And I have HUGE respect to you men and women who have the knack to do it day in and day out. Theres a certain
charisma you need to have when working with homeowners, and I just don't have it. I only work for home builders and commercial contractors.

I had my attorney write and structure my contract, and theres nothing in there to an acception to the 3 day rule.

Ya think there are exceptions in any commercial contracts? Ones that don't apply to homeowners?

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Ed the Roofer

Yes, that law/rule is specifically meant for the aid of buyers remorse for homeowners.

Ed