Are2 home purchase contracts enforceable?
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Are2 home purchase contracts enforceable?
I signed a home purchase contract with a builder to build me a home. The contract was not contingent on financing. I decided that I wanted to by a different home from the same builder that was already built. I signed a new contract that includes a financing contingency. My financing fell through. Can the original contract be enforced?
Asked on February 22, 2012 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The issue is what happened to the original contract when you signed the new contract which included a financing contingency. If the original contact was cancelled by the agreement of the parties, or the new contract specifically replaced and superceded the original one, therefore cancelling it (which again, would have to be by agreement of the parties), then the original contract cannot now be resurrected after its cancellation.
On the other hand, if the original contract had not been cancelled, or the agreement between you and the builder was that the new contract would replace the old one if the new one came to fruition or completion (i.e if you bought home 2, then you would not have to buy home 1), then the original contract would still be in force.
Thus, the answer depends on what was the agreement between you and the builder in regards to the first contract when you signed the second one.
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