ComplaintsforA&G Residential

• Initial Complaint

  07/19/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  We are active duty military and was stationed in Germany with orders to move to North Carolina in July 2022. We signed a contract to purchase a new build home from A&G Residential on April 20, 2022 through a realtor. I started questioning the process and major milestones for the new build and the only information I was given was that the foundation would be laid on June 6, 2022. On or around June 4, 2022 I started to communicate with the parties involved what the process timelines would be. My realtor did not received any information back. We continued to press this issue several times with no response. Then on July 7th, we arrived to North Carolina and went to look at the lot. There was foundation and the lot looked like it didn't break ground yet. This drove our decision to terminate our contract. When we submitted our termination letter the builder finally responded. He told us that he was waiting on permits, but because of the lack of communication, faith, and trust we still decided to go through with termination. We asked for our due diligence fee back (period ends in Nov 2022), but was denied.

  Business response

  09/27/2022

  Business Response /* (1000, 5, 2022/07/26) */ ********** ****** ****** & ******* **** ****** went under contract to purchase a new construction from A&G Residential LLC on 4/19/2022. The closing date on this contract was 11/30/2022. They were represented by a buyer's agent, ******* ******** of Southern Porch Real Estate in Vass North Carolina. They used a standard North Carolina Offer to Purchase and Contract. As part of the contract, they delivered $4499.00 as a due diligence fee to A&G Residential LLC by wire transfer. I have attached a copy of the signed and dated contract by all parties. If you will review sections 1 h, i, and j of the contract, you will see that the contract is clear the due diligence fee is "for the buyer's right to terminate the contract for any or no reason during the due diligence period. It shall be the property of Seller upon the Effective Date and shall be a credit to Buyer at Closing. The Due Diligence Fee shall be non-refundable except in the event of a material breach of this Contract by Seller, or if this Contract is terminated under Paragraph 23(b) or as otherwise provided in any addendum hereto." The Due Diligence period in the contract was 11/29/2022. Construction has started on the home and the home is on track to be completed by and closed by 11/30/2022. On July 7th A&G Residential received a Termination of Contract by Mutual Agreement without the release of earnest money deposit signed by the buyers. The buyer's agent asked at that time in a text if the buyers could get the due diligence fee refunded. She was informed that according to the contract, it was nonrefundable. A&G Residential has fulfilled its side of the contract and the home is still on track to close on 11/30/2022. When the buyer's agent was texted that the due diligence fee would not be refunded, she responded by text "No worries..." and "Understood and I shared it with them (the buyers). They do not want to proceed on it". A&G Residential LLC is an extremely reputable builder, and they followed the contract fully and communicated with the buyer's agent throughout the process. In North Carolina when represented by a realtor, the builder is to communicate with the broker and not the buyer directly. A&G Residential has no control or responsibility as to how the Realtor communicated with the buyer. But, in North Carolina, the buyer does have the right to terminate for any or no reason, but that is specifically what the due diligence fee is for. Consumer Response /* (2000, 9, 2022/08/01) */ (The consumer indicated he/she ACCEPTED the response from the business.)

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