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A Different Kind of Housing Crisis

What to do when circumstances change and you can't buy or build that house

by: Ron Burley, from: AARP, June 10, 2011

Just because a company can do something doesn't mean it should.

While it may have the right to keep the Triviskis' money, there is also nothing stopping it from having some sympathy for a customer living on Social Security disability payments. Yes, there is an agreement. But that agreement also allows for changes agreed upon by both parties.

So why wouldn't Topsider just do the compassionate thing and return at least part of the deposit? That we may never know. Despite numerous emails, faxes and calls, no one other than the company's attorney ever responded to my inquiries.

Protecting Your Right to Rewind

While several courts around the country have ruled that nonrefundable deposits must sometimes be returned if no expenses have actually been incurred, you shouldn't hang your hat on a judicial solution. Rather, here's what you should do:

1. Negotiate. You've got the most clout before you write the check. Demand language that deposits be used only to offset legitimate expenses rather than inflated or artificial "liquidated damages."

2. Consult. A few hundred dollars in quality legal advice is cheap insurance against a loss like the Triviskis suffered, and likely much less expensive than hiring an attorney to fight your case later.

3. Walk away. Big projects like building a home demand mutual trust among all the players. If you feel like you're being squeezed at the start, just imagine what it will be like when things get rocky.