If someone wants to flip a home before taking possession, what should they know?

Legal Moment on 980 CFPL

Transcript

[phone ringing]
Receptionist: Cohen Highley
Announcer: And now the Cohen Highley Legal Moment on 980 CFPL.
Announcer: I’m with Brian Phillips from Cohen Highley Lawyers. If someone wants to flip a home before taking possession, what should they know?
Brian Phillips: Our overheated real estate market has made it possible for buyers to enter into a new home construction contract with significant confidence that they can resell the contract to an alternate buyer before closing date for a profit.
Announcer: And the risk?
Brian Phillips: The original buyer is liable to the builder under the terms of the original contract. If the new buyer cannot close with the builder, the deposit could be lost and they could be liable for any damages suffered by the builder due to the default.
Announcer: So your suggestion for would be flippers?
Brian Phillips: Flippers must be prepared to close at the last minute if their flipee buyer cannot. This can be difficult unless the flipper is able to purchase for cash. Even if the builder resells for higher price, the flipper can lose the purchase deposit.
Announcer: Thanks Brian. This has been the Cohen Highley Legal Moment.
[Music]
Singers: Cohen Highley, we’re listening.  cohenhighley.com

 

How to Connect with Us

We make it easy for individuals to connect with our legal team.
You can request a call back from our legal team in three easy ways.

Call Us

Call our toll free number.

Email Us

Email our legal team.

Online Form

Request a call back online.