In Jan 2022, we began pursuing a Tim Lewis Property with a release of Feb/Mar. We were placed 11th in line. (Oof, long way.)
After back-and-forth communication (in a teasing, unprofessional way) we were selected to go under contract.
Being that 10 said no, I asked if the $200,000 lot premium was a reason or if some just moved on. The TLC rep responded "Both" and said, "But not for you...right?". Looking back, feels like the first bad-faith moment that should've been a red flag. But we were too excited for this dream home, all while our current home was climbing in value with the hot '22 market.
Important to note here that their selected lender had been informed that the primary way we purchase was to sell our current home and use the proceeds (I used the term equity in an email follow-up, might be the incorrect word) for our down payment. We were conditionally approved without contingency. Being fairly new to the home-buying process, we thought nothing of that term.
Contract signing day, we get to the page that many know has that fuzzy wording about how the deposits are handled. Bad Faith #2 where the TLC rep verbally assured us that in the event we walk away from the purchase, Tim Lewis will return the original deposits. Now, this wasn't the first time we were told this, and truly felt like a sales tactic at this point.
We gave our initial $15,000 for the second home-buying wave of our lives.
Wasn't long until Bad Faith #3. After dropping off the deposit, I thought to ask about the "optional" balcony. It was an additional $20,000 that my wife and I both felt we wouldn't use. I asked the TLC rep and she responded that it was spec'd into the home before the foundation and for permitting, that it was not spec'd for "non-view lots" and that it was a desirable feature. Remember this for a future point. It was not in our interest, but forced in anyways
We asked about a linear fireplace and were met with pushback that the standard fireplace was already placed into permits. We had zero warning of this decision. Again, keep that in mind for future reference.
We went on to put another $15-20k in floors, tile, counters, and typical upgrades. Paid our deposits on time and remained excited as our current house still climbed in value.
Then the TLC rep reached out that our new build was 2-3 months ahead of schedule. We were excited and terrified as we needed to now sell our current home quickly. So we rushed to get it on the market (which had shifted dramatically since the June high) posting our home within 2 weeks for less than a previous exact comp. For about a month, we saw little to no traffic.
As we got closer to the new build completion date and with our current home price dropping more to accommodate interest rates and low buyer traffic, we reached out to the TLC rep to see if there was wiggle room on price. The lot premium was an exaggerated $200k, so we thought it wouldn't be an issue to come down.
Once again, we were met with teasing and unprofessional communication that Tim Lewis would help with some small parts of the transaction outside of the price and that the lender would find something to make it work. Bad Faith #4
So we chatted with the lender, who by the way knew way too much about the deal in progress (didn't seem right). We looked at 15/1, lower down payment, HELOC, none of which felt right due to risk or ineligibility.
Then, we were introduced to a new TLC rep. She came in with a lot of rudeness. We basically established that we could not move forward. We would likely need to walk away unless they lowered the price. Keep that in mind. Her final response before we took a new direction was "If you go forward with a HELOC and we write for Jan 15th or sooner. Seems Fair?" Bad Faith #5. I believe that is unethical, am I wrong? So we contacted an attorney.
We officially walked away from the purchase and were given a cancelation notice by TLC with "Unwilling to HELOC. Seller to retain deposit funds". Again with the HELOC. We did not sign that, returning to TLC our own version of a cancelation. We then spent and entire year reaching out trying to resolve the issue. Come to find out, our deposits were never placed in Escrow, which by contract is exactly where they should have been the entire time. Our attorney had to get them to place it in escrow. Bad Faith #6.
Their reasoning for not returning our deposits is that they built the home to our spec. Remember when I mentioned the $20k "Optional" Balcony. (still listed that way on their website). The fireplace is a small factor, but still, not 100% our spec.
The house also was not ready till Mar 2023 and later sold not long after they finally advertised it was available. It was for less than what we were under contract for but still a profit off the land and build. So why are they holding our money?
We're not the only ones with a story like this. I'd love to meet the other 8+. They ignored us for another year. Don't buy from TLC. read more