Many have been wondering what happens next if for whatever reason you do not close on your unit. I have now a copy of the default letter that is sent certified mail, and have included the text below. A couple of things are worth mentioning and repeating. First, from all the mail I have received and gathering feedback from multiple readers who have had lawyers review their contracts, the Vue Charlotte has the legal means to recover damages above and beyond your deposit. This is not to say that they will. And of course everyone’s hope is that they won’t, but legally they can. I have not heard from a single lawyer yet that says this is not the case.
It is again worth repeating that some buyers have been told by the sales team that they won’t be at risk of losing any more than their deposit, but the Vue has not said that publicly and it is not what the contract says. My personal feeling is that if I don’t close on my contract, MCL has the right to sue for damages as per the contract terms. Their blog contribution of the recent Charlotte court order is what I would use to support the argument that they will pursue readers that don’t close. This is unfortunate but until I hear something different I will assume this is what they will do.
One other item worth mentioning is that if you delay closing there are terms in the contract that allow MCL to charge interest. That too is mentioned in the letter below.
Here is the text of the NOTICE OF DEFAULT letter if you do not close: