We are under contract for a new home that’s still under construction in a builder-developed community, and it’s only a few months from being completed. Recently, my 4-year-old son had a medical emergency at school that required an ambulance ride to the ER. We’re facing months of testing to determine the seriousness of his condition, and it may happen again.
The issue is, this new home is 45 minutes to an hour away from my child’s school, compared to 15-20 minutes from where we live now. When we signed the contract, we weren’t aware of these health concerns, but now it’s making us reconsider whether we can handle the distance, especially in the event of another emergency.
The contract is extremely one-sided, with almost no way to back out, even based on a 3rd-party inspection. We can’t afford to lose the earnest money or deposit, and we’ve already spent thousands prepping our current home to sell. I know it’s a long shot, but I’m wondering if anyone thinks a builder would have any compassion in a situation like this and allow us to walk away with a refund of our earnest money?
I’ve represented several builders, and in my experience, none of them would keep your earnest money if you approached them with a medical explanation. As long as you’re polite and explain the situation, they’ll likely understand. I wish you and your family the best.
@Sayer
Thank you. That’s exactly the perspective I was hoping for. I know there are no guarantees, but it’s good to know that exceptions like this are sometimes made.
First, I hope your son’s condition is figured out and treated soon. That’s the most important thing.
As for the situation with the builder, you’ll need a clear and concise medical explanation from your son’s doctor that shows the severity of his condition. This will strengthen your case with the builder, explaining why it’s necessary to back out of the contract.
I’ve worked with many builders too, and most would consider your situation if you explain it. They might only refund the earnest money if they’re confident they can resell the house quickly, and especially if they can get a higher price now than when you originally signed the contract.
Whether or not the builder will let you back out really depends on how far along the house is and how much demand there is for homes in that community. If they can sell it for more than you agreed to, they’ll probably be more willing to work with you. But if the market’s cooled off or the house is customized to your tastes, you might be stuck. It sucks, but this is what deposits are for.
First off, I’m really sorry about your son’s health problems, and I hope everything gets resolved soon.
In terms of your contract, you should consider talking to a real estate attorney. They can go over the fine print and help you figure out if there’s any legal avenue to get your deposit back.
Sorry to hear about your son, but I’ve got to ask—why did you buy a house that’s an hour away from his school to begin with? Emergencies aside, kids get sick or have accidents all the time. How were you planning on handling the commute even before this health issue came up?
@Zadie
There’s a huge difference between a kid falling down on the playground and a life-threatening medical emergency. Changing schools in the middle of a health scare might not be in the child’s best interest. Their current school probably already has a plan in place for emergencies, and transferring to another school would be another disruption during an already stressful time.
I feel for you, but you also have to consider the builder’s perspective. What if they’ve already paid for your custom finishes or made adjustments to the home? This is why contracts have deposits—it protects them from situations like this. That said, you might still have a chance, especially if the builder hasn’t put in too much custom work yet. I wish you and your family the best of luck.