Can an in-house lender bully their way into a pre-existing contract and delay escrow if they can match the rate?

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Can an in-house lender bully their way into a pre-existing contract and delay escrow if they can match the rate?

I was told by the seller that we can use our own lender if they can beat rates. Our lender beat rates an APR by 1.5%. We entered contract and signed and should’ve entered escrow last week. The sellers in house lender is now using his personal relationship with builder to stonewall process. We are being told by seller now that if their in house lender can match the rates, we are forced to go with them. Also side note. In house lender has been harassing my wife and myself, saying incentives closing costs, VA loan won’t be honored if we use our lender.

Asked on April 6, 2018 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Contracts are enforceable. If you have a signed written contract for the sale, the seller (the builder) must honor the contract's terms--e.g. going through with escrow and ultimately closing as set forth in the contract, charging you only what the contract says, providing any incentives that the contract says you get in these circumstances, etc. While they don't have to do anything not in the contract, and may exercise any rights the contract gives them, they do have to do what the contract says they must. If they do not, you can sue them for "breach of contract" to get a court order forcing them to go through with the transaction and/or for monetary compensation.


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