Builder dishonest waiting too long for new home

[AJ1971]

State=NJ. There are about 10 families waiting for their new home to be built. We all went into contract early 2002. Homes were supposed to be finished by early 2003. Builder was dishonest always saying "ground will be cleared next month and building will start". Everyone sold their homes (mortgage commitment required you have your home on the market) and are on rent because the builder gave out false dates over and over. It's the beginning of 2004 and they now finally cleared out the land, no foundation yet, everyone has had it and believes they should be compensated (ie.. free upgrade). We all sold our homes at a lower market value, we're all throwing money away on rent (over $2K a month, cost more when your month to month) for well over a year now and we all wasted money locking in on a mortgage rate, had they been honest in the beginning we would of chose another builder and would be living in our new home. Builder is one of the top 3 builders in the state. One of their employees even said "they took a different approach in obtaining the permits, approvals, etc" which is causing the delays. Are we wrong in thinking we should be compensated for their continuous lies, do we have a case against them? We have letters from their lawyer with different dates stating when the home will be completed and when they were to break ground, can they just make up dates, take your 10% deposit for two years and still not deliver a home and not be responsible for all the losses they've caused us? Thanks!

 

[HomeGuru]

State=NJ. There are about 10 families waiting for their new home to be built. We all went into contract early 2002. Homes were supposed to be finished by early 2003. Builder was dishonest always saying "ground will be cleared next month and building will start". Everyone sold their homes (mortgage commitment required you have your home on the market) and are on rent because the builder gave out false dates over and over. It's the beginning of 2004 and they now finally cleared out the land, no foundation yet, everyone has had it and believes they should be compensated (ie.. free upgrade). We all sold our homes at a lower market value, we're all throwing money away on rent (over $2K a month, cost more when your month to month) for well over a year now and we all wasted money locking in on a mortgage rate, had they been honest in the beginning we would of chose another builder and would be living in our new home. Builder is one of the top 3 builders in the state. One of their employees even said "they took a different approach in obtaining the permits, approvals, etc" which is causing the delays. Are we wrong in thinking we should be compensated for their continuous lies, do we have a case against them? We have letters from their lawyer with different dates stating when the home will be completed and when they were to break ground, can they just make up dates, take your 10% deposit for two years and still not deliver a home and not be responsible for all the losses they've caused us? Thanks!

**A: and not one of the 10 familes ever thought to hire an attorney to review the contract and seek available remedies?

 

[AJ1971]

We all have our real estate attorney and they all say they cover themselves in the contract, there's nothing you can do. Should we look for a different type of attorney? We just can't believe they can get away with misleading their customers.

 

[HomeGuru]

We all have our real estate attorney and they all say they cover themselves in the contract, there's nothing you can do. Should we look for a different type of attorney? We just can't believe they can get away with misleading their customers.

**A: so are you telling us that each of the 10 families have their own attorney and that all 10 attorneys said there is nothing you can do after reviewing the respective contracts.?

 

[AJ1971]

We all kind of feel like the attorney's are just brushing it off as if it's a waste of time to persue anything (not worth while on their part). "oh there's nothing you can do, they cover themselves in the contract, you just have to wait and deal with the delays". Would we have a case like in small claims court? A new home is usually built within a year, a year and a half the most, we've been waiting two years now and they haven't even started digging, the contract even says the latest the house would be ready is September 2003.

 

[HomeGuru]

We all kind of feel like the attorney's are just brushing it off as if it's a waste of time to persue anything (not worth while on their part). "oh there's nothing you can do, they cover themselves in the contract, you just have to wait and deal with the delays". Would we have a case like in small claims court? A new home is usually built within a year, a year and a half the most, we've been waiting two years now and they haven't even started digging, the contract even says the latest the house would be ready is September 2003.

**A: you did not answer my question.

 

[AJ1971]

I know all 10 families have their own attorney who reviewed the contract.
3 of us have asked our attorney isn't there something else we can do, and all 3 said "No they cover themselves in their contract".
The 3 of us also had our attorney write the builder's attorney a letter asking for compensation (The President's assistant said to write a letter to their attorney asking what we want). So far three of us did, my attorney called the builder's attorney to follow up and the assistant there said "the letter was filed..... fat chance they'll get anything". Very unprofessional and this now has just left us steaming even more!
Thanks!

 

[HomeGuru]

We all have our real estate attorney and they all say they cover themselves in the contract, there's nothing you can do. Should we look for a different type of attorney?

**A: so in your post you stated "all", which in this thread meant all 10 families. Now you confirm that it really is only 3 out of the 10 that you are aware of.
That is one of the reasons for my asking again. To get the real facts.
Now, what did your attorney specifically tell you when you asked why can't you cancel the contract?

 

[AJ1971]

Once the contracts were signed you have 10 days to back out and if the builder doesn't deliver by the latest date stated (Sept 03) you can get out of the contract.
The builder's attorney did send a letter once (Sept 03) saying we can get out of the contract but they would be clearing the ground shortly. We didn't want to get out of the contract a year and a half later, new home prices were up $50K, we already lost out by selling our home, paying rent (had no mortgage on home) and locking in on a mortgage rate twice (all because the builder kept giving us false dates). Getting out of the contract would only put us in more of a loss. If the builder was honest with delivery dates, we would of choose another builder. For a builder who's been in business for so many years, they should of known how long it takes to get all approvals and permits.

 

[HomeGuru]

Once the contracts were signed you have 10 days to back out and if the builder doesn't deliver by the latest date stated (Sept 03) you can get out of the contract.
The builder's attorney did send a letter once (Sept 03) saying we can get out of the contract but they would be clearing the ground shortly. We didn't want to get out of the contract a year and a half later, new home prices were up $50K, we already lost out by selling our home, paying rent (had no mortgage on home) and locking in on a mortgage rate twice (all because the builder kept giving us false dates). Getting out of the contract would only put us in more of a loss. If the builder was honest with delivery dates, we would of choose another builder. For a builder who's been in business for so many years, they should of known how long it takes to get all approvals and permits.

**A: now I fail to see what your problem is. You had a choice to cancel but chose not to.

 

[AJ1971]

So your saying a builder can take your 10% deposit ($50K), half for your upgrades ($60K), require you to have a mortgage commitment (which the bank requires your home to be on the market) to give you a commitment, and they can continously lie about when they are going to start, so we sell our home based on their delivery time, go on rent (6 month leases at $2K a month, because the builder claims the the home will be ready in less than 6 months), then a year and a half later (where other builders in the area already finished their homes), the builder says you can get out of the contract but they'll break ground soon and our home will be built in less than a year.

How does getting out of the contract help us, when 18 months have already passed? We then have to shop around for another home and wait another 12-18 months for a home and pay over $50K+ more because the market has gone up. We believe the builder should compensate for the inconvience and misleading information they've given us, how can they say they will be breaking ground July 2002 and then not actually break ground until December 2003. Were we all wrong to trust a reliable builder?

 

[HomeGuru]

So your saying a builder can take your 10% deposit ($50K), half for your upgrades ($60K), require you to have a mortgage commitment (which the bank requires your home to be on the market) to give you a commitment, and they can continously lie about when they are going to start, so we sell our home based on their delivery time, go on rent (6 month leases at $2K a month, because the builder claims the the home will be ready in less than 6 months), then a year and a half later (where other builders in the area already finished their homes), the builder says you can get out of the contract but they'll break ground soon and our home will be built in less than a year.

How does getting out of the contract help us, when 18 months have already passed? We then have to shop around for another home and wait another 12-18 months for a home and pay over $50K+ more because the market has gone up. We believe the builder should compensate for the inconvience and misleading information they've given us, how can they say they will be breaking ground July 2002 and then not actually break ground until December 2003. Were we all wrong to trust a reliable builder?

**A: what did your atorney say after reviewing your contract? Is there not a deadline for completion and a specifc performance clause?
Reliable builder and top builder in the state may have mislead you. Check out www.hadd.com