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Periodic Contributor

Contract price vs Market price at the time of Closing

Few months ago, I signed a contract to buy a house that is under construction. According to builder, the will be ready for closing by end of the year.

I am wondering, if the closing price go down due to housing market corrections that are happening, do I still need to pay the contract price or the market price at the time of closing?

 

If there is a difference between contract price and market price, do I have an option to dispute the price?. Who should I report this type of issues in TX?

Appreciate any advise.

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Honored Social Butterfly

I agree with wilful - signing a contract with all the numbers and what is supposed to be included, including deadlines - firm ones -  is pretty final unless the parties for some reason want to renegotiate but probably with some consequences - which should also be described in the contract.

 

This is especially true of a construction to permanent loan on a new home.  There are lots of if's - construction cost can go up (or down), deadlines may not be met with supply chain issues - one has to take what's in the contract or both parties have to renegotiate all or part of the contract.

 

In real estate, one has to always be aware that market rate could fall - but on the other hand, hopefully you locked in a better rate than what is currently available.

 

 

 

 

It's Always Something . . . . Roseanna Roseannadanna
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Silver Conversationalist

Unless there is wording in the contract that addresses this issue  - the contract price shall prevail. 

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