Home contract laws?

[JohnQ]

Does anyone know what rights a home buyer has?

 

As some of you know I have been waiting for a house to be finished. I signed the contract on Oct. 14th of last year. My contract states that the house will be finished no later than Jan. 31st. Over the past few months my builder has been working maybe one or two days a week on my house. He didn't even touch it in the month of May or even return one of my several voice mails. My lender and him have agreed on several closing dates but he has yet to meet any of them. Now my interest rate has gone up and I am losing money. Not to mention I have a new baby coming at the end of this month and I don't have a house for him. I can't descibe the stress this has been putting on my family.

 

Verbally the builder and I agreed on over $6000 in upgrades, he can kiss that good-bye.

 

Is there any legal action I can take? Breech of contract, anything?

[sinnaevd]

no doubt there should be, wish i knew where to find them though bud. in Canada, (or at least in ontario) you could sew (sp?) or not pay the contracter at all

[Pete M]

sue :D

 

Maybe check with the better business bureau?

[summerinmaine]

Ordinarily such a contract should have performance clauses specifying bonus for early completion/penalty for late performance (carrot/stick). If you simply signed the agreement the contractor provided, good luck. Does the agreement at least provide that time is of the essence? Did you check with a lawyer before you signed it?

[jpdriver1]

check with your local legal aid --- you might be able to place a lien on his business for non completion or sue

[Eagle]

He is in breech of contract, but you WILL need an attorney to be able to force him to make good on it. You can bet he has an attorney, and if you as a rookie go up against his attorney by yourself, you're going to be chopped liver.

 

My first question is why your lender is setting any closing dates with this clown? The contract (as I understand it) is between YOU and the builder, and it is YOU who will be closing. Any negotiations should be between you and the builder (or between your attorney and his attorney). Your lender should stay out of it except to answer any questions you might ask.

 

Second, if you have a contract specifiying a closing date, and delays on the part of the builder have resulted in a higher mortgage rate, you have incurred (or will incur) financial harm as a result of his actions. He is responsible for that. I would think that the amount of extra money this is going to cost you over the life of the mortgage can be calculated, and he should pay you that as damages. But ... you're going to need a lawyer to make that stick.

[Wildman]

Most contract law's are based on AIA contracts.

 

BUT - each state has there own governing laws when it comes to "Contract Law" and is enforced by the States Attorney Generals office.

 

Do get an attorney, but get an attorney that specialize's in Realty/Contract, don't get your friend's brother-in-law friends DWI lawyer, get an lawyer that KNOW your states contract laws.

 

Breech of contract will not stand, because you made changes to the contract with "extra work" and extra's carry additional time, and that is what your contractor is standing behind.

 

I know your upset about this, but don't bash your builder, here or anywheres, that could come back to bite you. Who know's he could be a menber here and logging your comments about him :roll:

 

If you own your land, have the deed in your name only, and the builder is not on it, well, in NY that is a Big plus, there are ways to "remove" the builder from Your property. This in not the place to go into details.

 

As far as your builder orchestraing with your lender, that should not happen, unless your lender has been providing direct draws to him, then your on the sidelines, and they are calling the shots.

 

People always try to save a few bucks not getting an attorney at the begining of a project like this, and one is not always needed, until a problem arise, then you got to bring one in and up to speed with what happen, and that costs twice as much than if you had one in the begining.

 

There is an old saying in realestate "Buyer Beware" I have an old friend going thru a real mess from some property he bought last year, because he used the seller's attorney for closing.......Big mistake, there not looking out for YOUR instrest, and he's paying the price now.

 

So, get your self a Good Realty/contract lawyer Monday morning, provided all the paper work you have in hand, and now your at the he said/she said stage, and you will have a long wait until you can close on this chapter. A good lawyer, will be making phone calls right away, and know this, don't let him drag this out anymore.

 

Don't waste your time with the legal aid beagles, nor even call the BBB, your pass that stage, you need a Real Attorney NOW.

 

Now......let's get back to MJ's ;)

[Eagle]

Most contract law's are based on AIA contracts.

Nope. I'm an architect and I was a member of the AIA for 30 years. Home builders either have a contract their attorney wrote up (which obviously favors them), or they use one put out by one of the several national or regional home builders' associations. (Which also are heavily tilted in favor of the builder.) AIA contracts come in only when it's a true custom house that was designed by an architect who is working for the owner (not the builder), AND when the architect is in control of the bidding process.

 

It doesn't sound like that's the situation here.

 

Either way ... lawyer up, now.

[Wildman]

Eagle - Yes, I was in the wrong with that statement, and your statement about the "builder favor" is correct.

 

I been doing commerical for the past 20 plus years, and all we use are the AIA schedules, I get confused at times :roll: