Using Builders Contract
I was all ready to purchase a home from a builder and when we were going through their contract, I saw some clauses that went against privacy laws that I am aware of. the clause stated that they (the builder) have a right to all credit information that is submitted to the lender and that they can forward that information to any party that they want.
Is this typical of builders contracts? And is this allowed? I am sure that builders all have teams of attorneys going over their contracts so I know this clause must have been vetted by their legal department.
Is one tied to accepting all clauses on the builders contract? Can you negotiate which clauses are acceptable to both parties?
Thanks,
JS.
Newkid,
Paying cash will not solve the problem in this particular case as the builder will revoke all discounts if their "affiliated lender" is not used.
I understand that we can all put whatever we want in our contracts, but I was wondering if it is legal for a seller (NOT the lender) to require a prospective seller to reveal credit, financial and personal information as a condition of the sale.
I am no longer purchasing this property anyways, but am curious to know where the law stands in relation to disclosing such info. I always believed that only those making direct credit decisions (Lender, Landlord...) could ask for such info. But if a seller can make this a condition of their sale (even though they are not the ones extending credit) then that means that we can all ask for credit report even without permissible purpose. Right?
Thanks,
JS.
Quote:Newkid,
Paying cash will not solve the problem in this particular case as the builder will revoke all discounts if their "affiliated lender" is not used.Sorry, I misunderstood.
thought the problem you wanted to attack was the credit and financial disclosure your builder required in their contract.
The civil rights laws of the United States prohibit discrimination on the basis of race, color, religion, sex, national origin, disability, age, familial status, and so far there is nothing on the books yet regarding credit score or credit information.
If both participants or parties agree to it then I do not see how that practice in anyway violates U.S. modern privacy law. Think of the number of times you heard "this call may be monitored for quality control purposes..." Both participants effectively then agree to have the conversation recorded, and I think it is the same case here if the buyer signs the contract.