New Home Builder will not have house completed by Close Date on Sales Contract...What is our recourse?

Question

Our contract with the builder states a close date of Dec. 11,2007. They haven't touched the lot to this date. I spoke with the contruction supervisor today and he gave me the inside scoop. He said he has never built a house in less than 57 days and it usually takes apprx 77 days. He told me it is not likely they will meet that close date. We did not renew our lease on our apt. and we only got until Dec. 30, 2007 before we have to be out of here. We will have no place to go. We could ask to go month to month on our apt. , but that will almost positively be more per month than our regular rent. I would like to set a fire under the builders *** to get them motivated. I have been deligent about asking them when it was going to be started and they have never given me a decisive answer. What recourse do I have in this situation other than canceling the contract? I really want the purchse to go thru, but how do I make it happen within the time frame outlined in the contract?

I read the contract and it basically says if either party is not able to close on Dec 11,2007 they are entitled to resolutions outlined in paragraph 15. Paragraph 15 says" If, due to to factors beyond Seller's control, Seller fails to substantially complete the improvements by the Closing Date or fails within the time allowed to make any non casualty repairs or deliver the Commitment, or survey, if required by Seller, Buyer may (a) extend the time for performance up to 45 days and the Closing Date will be extended as neccessary or (b) terminate this contract as the sole remedy and receive the earnst money.

So, I guess I am at their mercy unless I terminate. I guess my only ammunition is trying to guilt them into performing.

I went to talk to them today.
The sales woman was very resposive and understood the situation and mentioned assistance money before I did. I just said we were very concerned about them meeting the close date and she agreed. She told us to provide her with monetary numbers for what we are going to be out. So right now it seems promising at least that they may provide assistance. Ofcourse this sales woman is new and may be expecting her new employer to make good on something they won't.. we will see. Thaks to everyone for your input. I will post the results.

Answer 1

Read your contract! Virtually every construction contract has dozens of protections for the builder as far as the completion date is concerned. Normally the original closing date is nothing more than a target and most homes will close several weeks or even months past that date.

Have your attorney review the contract and explain the contrator's outs on the closing date to you. He can probably follow up and see what the contractor's reason for the delay is and verify that it is within the scope of the contract, and if not, what your rights may be.

Answer 2

Guilting them will do no good.

I built 3 homes in 2004 and all the buyer's wanted them done yesterday.

These are the hazards of buying a brand new home.

I would personally relax, go to the rental office and ask for month to month.

Do you want your dream NEW home or don't you.

New home buying is MUCH more difficult than buying an existing home.

It might be the END of January before you get into your new home.

The 77 days is best case scenario.

P.S. Don't hurry these people, unless you want shoddy workmanlike construction.

Terry S.

http://www.Welcome2Arizona.com

Answer 3

I Dealt with this about a year ago. Unless you had a fixed hard date in your contract there isn't one.

Like Bostonia said they will have different ways to get around it. Thing like a weather clause, availability of materials, labor, permits time delay, etc.

Unless you wrote that contract it is writen in a way the will take care of the contractor.

Answer 4

I'm guessing the Dec 11 date isn't a contractual obligation from the builder.

You can pay hard ball and say that you want out of the deal and try to get them to pay for the difference in your rental payment, etc.