Agent

Real estate purchase contract faces transfer restrictions

Can new-home developer prevent resale within 12 months?

DEAR BOB: I purchased a new home to be completed next April or May. The price and terms are locked in. But my plans have changed and I will be moving away from the area. When I asked the developer about assigning my purchase contract to a friend who wants to take over, the developer pointed to a clause that says the home cannot be sold within 12 months of completion. Is this legally enforceable? – Robb C. DEAR ROBB: Many developers and home builders include such resale prohibition clauses to prevent buyer speculation, especially in the first phase of a new subdivision. Let's put it this way: I am not aware such clauses are illegal. Purchase Bob Bruss reports online. However, I am not aware of any appellate court decisions allowing enforcement of such clauses in court. After your new home is completed and the home builder or developer has his money, he probably could care less if you resell to your friend within a year at a profit. But it appears you now want to assign your p...