Skip to main content

Builder's Own Daughter Walks Away from a Contract

Last week, I wrote about defaults resulting from Occupancy Fraud (obtaining a mortgage loan based on a false promise that one will live in the unit as a principal residence)

This morning I wrote about a developer who is being sued for trying to cancel (discounted) pre-construction contracts in an effort to pocket the profits he was originally willing to forgo to get secure those buyers in the first place. His margins are getting so close that he need cannot afford to let those buyers proceed on their speculative contracts.

Now this:
Toll Brothers, the country's biggest builder of luxury homes reports that included among the 28% of all buyers who canceled their purchase contracts in the fiscal quarter ended January 31, 2008, is the co-founder / vice chairman's own daughter! Reportedly, she signed the contract to buy a Florida condominium for $2.5 million (on the friends and family discount plan) but will not proceed to closing.

How bad is the marketplace, that the firm leadership's own family is willing to default on a contract? Toll Brothers says its cancellation rate in Florida was nearly 61% thu the 12 month period ended Oct. 31, 2007.

Toll Brothers response to the news? The company "intends to pursue its rights" under the purchase agreement.

as i said just hours ago, with friends (family) like these.....

Comments

Popular posts from this blog

The Equifax data breach and you — 6 steps to take now

Identity thieves hit a major credit reporting agency—hard. Millions of consumers’ confidential identity information has been compromised.

Equifax, one of the big three credit reporting agencies announced that a massive security breach took place earlier this year. Offenders accessed data sets of 143 million US consumers.

With federal tax reform looming, should I prepay 2017 Cook County property taxes?

By Michael H. Wasserman

Paying property tax bills before the end of the 2017 may help some owners save on their federal income tax liabilities.

The Tax Cuts and Jobs Act has been called the most sweeping tax reform bill in decades. Like it or
not, tax reform is coming. Others might wring their hands with glee or with worry. We are already working on ways to minimize the pain this reform might cause. 
One aspect of the pending tax reform plan presents a clear challenge for most Chicagoland home owners, the elimination of deductions for State and Local Taxes (SALT). The house and senate plans both limit deductibility to $10,000. Once the tax reform is signed into law, we will pay federal income taxes on the money we use to pay our local taxes exceeding that $10,000 threshold. Some homeowners who have the foresight (and lets face it, the savings) to act swiftly may want to pre-pay their first installment 2017 property tax bills this year before the tax laws kick in, so that those payments …

What to do when drones fly near your home

Imagine a quiet evening on the deck of your new home when—out of nowhere—a noisy drone begins hovering around your property, almost certainly snapping photos or video. It’s like Space Invaders meets Gladys Kravitz. So what do you do?