Had our house sold but buyers backed out at last minute and we are having a house built . Have not given any money except $1000 . What happe...

Question

Had our house sold but buyers backed out at last minute and we are having a house built . Have not given any money except $1000 . What happens if we continue with construction but haven t sold our house when the new one is finished and can t afford 2 mortgages

Answer

It all depends on the specific contract terms (which is one reason why attorney review of contracts before signing helps spot and avoid problems down the road). Ideally one would have a contingency clause in the construction contract to cover such a situation. If not, then it may be time to negotiate with the builder.

This post offers general legal information and is not intended as legal advice specific to your situation. You're encouraged to seek an attorney review of any specific contracts at issue.