Tuesday, April 12, 2005

Builders Try To Limit Speculators

Home builders are trying to cut speculators out of their projects. Is it legal? "'A one-year prohibition against reselling without including the builder in for a piece of the profit, is that an undo restraint of free sale of real property?' said Robert LePome, a Las Vegas real estate attorney."

The Reuters piece touched on the issue of backlogs at the firms. "'I can't sit here and say we have no investors in our backlog today,' Jeffrey Mezger of KB Homes said, referring to KB's backlog of homes under contract. 'I think that would be naive.'"

2 Comments:

At 12:33 PM, Blogger Ben Jones said...

Ms. P,
I though the same thing. We can remember the Pulte office in Las Vegas selling several homes to the same person. They didn't know, encourage speculation? Ben

 
At 2:07 PM, Anonymous Anonymous said...

The developer on the CNBC show last week said they do the same thing. It was a term in the contract between the builder and the buyer. They get a cut if the property is flipped.

 

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