Purchase Agreement

[Anne]

Hubby and I signed a purchase agreement with a dealer (#1) back in April. We have since lost all trust and confidence in him (not that there was much there before that, lol), but now we want to go with another dealer (#2) we've been talking to for the exact same house at $1300 less. My question is, is the purchase agreement we signed in April a binding agreement or can we basically tell him where to shove it and go with #2? I did talk to #2 yesterday and he said that it is not a binding agreement, but if we had paid a down payment we would probably lose it. We didn't pay a downpayment. The only reason we even wanted to buy from #1 was he was the closest to us. #2 is 1 1/2 hrs away. Plus we have always thought we were this close to closing on our construction loan that we wouldn't/didn't have time to switch to a new dealer. At this point, we are within days of the closing. Switching dealers now will probably hold it up yet again, but I don't care. I just DO NOT trust #1anymore and certainly don't want him to end up with ANY of our money. If it wasn't for him holding things up for 6 months out of the last 1yr and 1 mo, we would have been living in our new house by now. Sorry, I got off track ranting about #1, lol. I would appreciate any insight on this purchase agreement question. If it helps, we are located in Michigan. Thanx, Anne

[jgn]

Take it to a lawyer and get his opinion and have him wite to the the dealer #1 to cancel the order. Does it say anything in your contract about performance on his part? If you have no money down it really depends on the language and I would not rely on the other dealers opinion about the contract.

[rmurray]

It is probably binging...but if the dealer was selling a stock unit..or has not ordered yours yet..I doubt he will do anything...

Talk to your lender first...saving money is important..