From what i understand, I hear that there is a law that protects buyers of homes by new home builders if they take longer than 24 months to complete their given project. After the 24 months period, the buyer then has an option to redeem his/her initial deposit, sometimes with interest. Can anyone shed any light on this? Is this recognized nationally or state to state? Thanks ahead of time!
2006-10-02 18:04:44 · 6 answers · asked by solid703 1 in Business & Finance ➔ Renting & Real Estate
I don't believe there is such national regulation, but it is possible that it exists in local level.
Usually there is a clause in the contract that states the length of time the builder promised to complete and how much "grace" period they have.
We had the same problem with our last builder. Our builder was building a bunch of houses inside a sub-division. We found out the builder gives its contractor a bonus when he finishes a house on time. So once the schedule for our house slipped, he put it off completely to concentrate on other houses where he still has a chance to collect bonuses.
Eventually we started collecting data from the city's Building Inspection Division (the department in charge of providing permits and inspections) of all the houses started around the same time as our home and completed before ours. Armed with this information, we written several letters (some registered mails). We finally had ours built 18 months after the start date.
It is not easy to fight builders. There are so many parts and variables that allow them essentially unlimited excuses. The only thing you can do is be persistent. Eventually they will finish the house just so that they don't have to deal with you.
Good luck.
2006-10-02 18:22:39 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
Your question is unclear. I assume they have not completed YOUR house in the 24 month time. OR are you saying they have not completed the PROJECT in 24 month time? IF it is the whole project that is Incomplete. I would suggest a group action with the county planning committee. If it is your House. FIRST read your contract. If you are not sure what it says, Hire a Real Estate Attorney to read your contract. Once you completely understand what you signed and agreed to call your builder (or have attorney call the builder.) The contract will say something about this situation. If you have construction draws on the house; call your lender. do you have a Government Loan? Call you Lender. Is it a large deposit? Over $7,000? talk to an attorney. Under $7,000 go to small claims court. (Check with state for the dollar limit for small claims.) Did you have a contingency to sell another home? This will be covered by the State and the Contract, not nationally.
2006-10-02 23:02:07 · answer #2 · answered by phifer9807 2 · 0⤊ 0⤋
What state are you in? This would be regulated by the state. If your state does not have a time limit set by law, you probably have something in your contract with the builder. Ask your real estate agent to help you figure this out.
Good Luck.
2006-10-02 18:27:02 · answer #3 · answered by LasVegasMomma 4 · 0⤊ 0⤋
What state and country are you in? I'm quite sure there are differing laws (I know there are vastly different laws between the states here in Australia).
Best thing to do would be to contact your local consumer affairs office to enquire...and/or contact some reputable builders to ask what their policies and thoughts on the matter are.....it helps if you have some inside information on the industry when you talk to your builders.
Good luck.
2006-10-02 18:18:00 · answer #4 · answered by mildly_adiktiv 2 · 0⤊ 0⤋
Call a lawyer. Call the bar for referrals, nine times out of ten you will get that advise FREE because of the referral.
Never buy or sell property without one. The builder may not want you to have one but its your right to protect your investment as they would be quick to get one for themselves.
2006-10-03 00:10:48 · answer #5 · answered by Hun 2 · 0⤊ 0⤋
Hi, We had this same problem years ago. It should be in your original building contract. Check other areas like your building permit,your city building authority,local building association (we 'sued' our builder through the Milwaukee Builders Association),your bank that gave you a building loan (bridge loan). They may be able to pressure your builder.
I've never heard of anyone getting their money back in this situation before.
Hope this helps.......
2006-10-02 18:18:25 · answer #6 · answered by Cindy B 2 · 0⤊ 0⤋