Long story...My husband and I were going to buy a house. The builders are our friends. We have given them $142,000 for upgrades in the new home and are close to going to settlement. Because they are our friends, we do not currently have a contract signed with them. My husband and I are separated and I do not want to go ahead with the purchase (too risky and I dont want to be tied to him). The $142,000 was taken from a line of credit (in both mine and my husband's names) but the line is against a home I currently own alone. Can I legally get the money back that we have given them?

That is a question for an attorney as rules will vary by state.

For sure you can count on lossing a friend...at that I am not sure if you should call yourself a friend if you are thinking of doing this to them. Your "friends" have invested a lot of money to build you the home you requested and to your specs (you picked $142k in upgrades that other may not even like). Even if your attorney says yes there is a way to get the money back you better plan on ending up in court.

__________________
The Suburban House Hunters Team would like to thank REW members for past referrals! We are never to busy to handle your Chicago area referrals.

Always looking for quality unique content for our real estate agent blog, PM me if interested in writing a post.

My thoughts on the Sarasota Association of REALTORS actions.

If I did not read you wrong, you allowed them to build the upgrades already and until they are about to be done, you never said no to them building it. Even if you dont have a written agreement, you have an oral permission that is done to benefit you. You dont have a chance.

If I were you I would go and talk to your builder friends about your situation and see if you can't sort something out between yourselves before things turn nasty. If you're not going to close on your new house then maybe the builder will agree to putting the house on the market now, and give you your upgrade money back once the home is sold.

__________________
beachgal
Realtor and wannabe webmistress.

Pensacola Real Estate
Florida Pre-Construction Condos

This is not an easy situation to be in...my husband was having an affair and tricked me into using my equity in my current home for the new home when he had no intention of staying married to me. I would think my "friends" would see that these are extenuating circumstances. I understand they built the house to our specs...they also stand to make a lot more money themselves if we dont buy the house and they sell it someone else....trust me...this hasn't been easy and I don't want to lose the "friends" but yet I dont want to be forced to sell my current home if the mortgage doesnt get paid on the new house (if we were to buy it).

If your friends can make more by selling it to someone else then you really need to talk to them. They may be more than willing to help out if they can at least not loose money. The sooner you talk to them the better as it takes time to get a home sold and every day it's done and not sold costs them money.

__________________
The Suburban House Hunters Team would like to thank REW members for past referrals! We are never to busy to handle your Chicago area referrals.

Always looking for quality unique content for our real estate agent blog, PM me if interested in writing a post.

My thoughts on the Sarasota Association of REALTORS actions.

Yes, definitely talk to them.

I'm sorry to hear about your circumstances with your husband, very sad.

But better to be open and honest with them irregardless of whether or not they are your friends. You have made a committment to them and they have honored their end of the deal.

You really should just get it out and start working on a resolution and stop fretting about what might happen. Particularly if the home is worth more than you have agreed to pay, it seems like an amicable solution will be found.

You will probably need an attorney either way as you still have your husband to deal with, but just be up front with your friends and try to keep your emotions out of it. This is a business transaction and should be handled as such.

Best of luck with it!

__________________
Home Staging and Real Estate Staging in Los Angeles & Surrounding Areas.
Visit our Home Staging Blog
Tidbits to Get Staged for Success.

I'm not an attorney and this is not to be construed as legal advice - BUT...you may want to check with a local real estate attorney who could tell you if verbal contracts are legally binding in your state. In most cases in the Commonwealth of Virginia, for example, they are not. However, this is complicated since the builder acted in good faith to build a product that you and your husband (who were legally bound to each other at the time) agreed to purchase. It seems to me, the problem is more with your husband than with the builder. I'd say you should be talking to a good divorce lawyer (irregardless of whether or not your intention is to divorce) to figure out if there is a way for you to get out of your portion of the deal. Whether your husband coerced you into making the investment is a decision for a judge to decide. The contract between you and your husband (the "Puchasers") and the builder is secondary, in my opinion. I can't see any judge punishing the builder for your unfortunate circumstance IF he recognizes your agreement as legally binding. I'm so sorry for your situation.

__________________
Irene Morales Ward, Realtor
Northern Virginia Real Estate
RE/MAX Absolute

Hello Kat, did you own your property before marrying your husband? If not, he may be intitled to your current property as well because you were married while purchasing the property and I'm sure that he also paid the mortgage with you. Good Luck.

__________________
downtown san diego real estate
Freelance Programmer
downtown san diego condos

Also, how can your husband be on the line of credit if the house is only yours?

__________________
downtown san diego real estate
Freelance Programmer
downtown san diego condos