Q: Can a home builder ask to hold the down payment until closing day?
I gave a deposit on a new construction home and the home builder is asking for the full amount of the down payment, before closing day. If I do not give them the down payment before closing day, they will keep my deposit I a cannot buy the house.
A: A down payment is normally non-refundable. But if the seller cannot convey good title, it should be refundable. Therefore you should have a written agreement specifying when it is to be refunded and when it is not. And to insure that the funds, title documents, etc. are delivered to the parties entitled to them, it is usually best that an escrow agent, such as a title agency do the closing (exchange of funds, deed, etc.).
A: Purchasing a house--or any other real property is NOT the same as buying a used car. If you have never done it before I suggest you either hire a lawyer to help you close or get a Realtor to keep you from doing something unfortunate.
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