Contract default

[kenkwans]

kentuckyWhat is the name of your state? kentucky

We have a home builder building a house for us. We signed the contract two months ago. Recently, the builder asked us to sign a new contract with $2000 more putting on the base price. The reason is they found out the house needs a hand rail to meet the code. They asked us to sign the new contract or they declare us default the contract. Does it make sense? Thanks for the attention,

Your sincerely,

[PghREA]

Originally Posted by kenkwans

kentuckyWhat is the name of your state? kentucky

We have a home builder building a house for us. We signed the contract two months ago. Recently, the builder asked us to sign a new contract with $2000 more putting on the base price. The reason is they found out the house needs a hand rail to meet the code. They asked us to sign the new contract or they declare us default the contract. Does it make sense? Thanks for the attention,

Your sincerely,

2K seems like a lot of money for a handrail. However, an occupany permit will not be issued for the property if the home does not meet code - which means that you will not be able to close and move in. So, you have 2 choices, default on the contract and let the builder sell the home to someone else or sign the new contract, pay the additional money and get on with your life.

Keep in mind that building costs routinely increase in February. Which means that the same home you contracted for in 2005 will cost considerably more in 2006.

[HomeGuru]

Originally Posted by kenkwans

kentuckyWhat is the name of your state? kentucky

We have a home builder building a house for us. We signed the contract two months ago. Recently, the builder asked us to sign a new contract with $2000 more putting on the base price. The reason is they found out the house needs a hand rail to meet the code. They asked us to sign the new contract or they declare us default the contract. Does it make sense? Thanks for the attention,

Your sincerely,

**A: No, keep the existing contract and do a change order or addendum.

[BSharp]

Originally Posted by PghREA

2K seems like a lot of money for a handrail. However, an occupany permit will not be issued for the property if the home does not meet code - which means that you will not be able to close and move in. So, you have 2 choices, default on the contract and let the builder sell the home to someone else or sign the new contract, pay the additional money and get on with your life.

Good answer.

Originally Posted by PghREA

Keep in mind that building costs routinely increase in February. Which means that the same home you contracted for in 2005 will cost considerably more in 2006.

Remember the housing bubble. The general trend is that home prices are in decline over the next few years. Chances are good that your home price will be LESS in a coup0le years. It is a buyers market not a sellers.