Loan type : FHA
My husband and I signed a purchase agreement with a builder for a new construction home. The original sales price was $172,000, and we opted for $18,000 in upgrades, which made the contract $190,000. The seller wrote into the contract that he would not put in ANY upgrades in the home until the appraisal came back to support that figure, and our financial contingencies were waived, however he put in some of the upgrades such as granite, tile, spindle railing before the appraisal was done . The appraisal came back at $172,000, so we signed a new Purchase Agreement (PA) for that amount. The builder wanted to do a side note for the price of the upgrades since he already put them in. We agreed to a note of $10,410 signed by all parties. In the original agreement he had agreed to 2% seller concession, but in the new contract took that out. The bank has as a contingency that he needs to add an addendum to the PA for the 2% seller concession. He told us the only way he would do that is if we sign a new side note at $16,200, and he wants to change the title of the note from “amendment” to “consulting fee” with no itemization of what $16,200 was for. We told him we did not want to that, so now he is saying we are backing out of the deal and he gets to keep our $5000.00 deposit. Do we have a leg to stand on in court to get our deposit back? I have documentation of everything through e-mail correspondence.
Thank you for your time.