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Pre-Con Purchase Agreements
Many people enter into purchase agreements for properties in construction, or proposed for construction; whether for an investment or for personal use. These contracts are known as Purchase Agreements for Pre-Construction, otherwise known as “Pre-cons”. These contracts are generally one-sided to the benefit of the developer or designated entity selling the property. Salesman use their pitch to sell you on a property, in many situations, they have not even read the contract that they have you sign for the purchase let alone explain to you your rights under that contract, that of course, is why there is a term under the agreement for providing time to have the contract reviewed by an attorney.
What most people do not know is that these contracts may restrict your ability to sell the property for a certain period of time as an investment, or if you choose to not purchase the property, most of these contracts have terms for what is called, Specific Performance. What Specific Performance means is that if you ultimately chose not to purchase the property, the developer or designated entity can file a lawsuit against you requesting that the Court force you to buy the property. What you would probably not expect is that these terms can be upheld by the Court; therefore, it is a serious matter and concern if you are ultimately unwilling, or unable to purchase the property.
K/S can assist you in terminating the contract for the purchase, and can also defend any action filed against you in Court making you buy the property or pay a penalty for not purchasing the property. K/S can also assist you in the review of these contracts to ensure a more proactive approach, by protecting yourself from a potential problem.
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