Builder threatening to void contract

[colorado cowboy]

I am building a new house in Colorado Springs, CO. We have had multiple delays in construction. So far, not a single date that the builder's agents have given me has been met. 2 & 1/2 months after we contracted, they still had not started construction. Frustrated, we sent our realtor to talk with them. In this process, our realtor asked if they were going to offer any concessions for the late start and the run-around we were getting. They refused any kind of concessions, but did start the house. We were satisfied with this, and they were not legally bound to give us any consessions. The building has gone ok, but they have continued to push our close date back. We will now close 2 months beyond the estimated close date stated on the contract. While this is frustrating, I realize it is not too bad of a delay.

This week, we complained about the direction a door was being hung. We were told it would cost an additional $150 to change. When we countered that we were already paying nearly $500 for the door (an optional upgrade) and that had they showed us the plans beforehand we would have requested it in advance. The seller's agent agreed that it should have been discussed with us, but that we would still have to pay $150 at this point. When we said we would like to talk to the builder about it, we were told that talking to the builder was a bad idea and that he was about ready to void our contract. We were informed that he was still mad about us "sending in our realtor" and was about ready to void our contract.

At this point, I don't care about the door any longer. I will fix it myself after closing. I am concerned that the builder is looking to get out of our contract. Several times we have been asked if we want to void our contract. So my question is this: can the builder void our contract without cause? I have looked over the contract and we have satisfied every demand they have given. I see no grounds for this.

As a footnote, the base price of this house went up $7,000 a few weeks after we contracted, but before they started building. Additionally since we used a realtor, they will have to pay out nearly $10,000 in commission. We have paid in nearly $8,000 in upgrade deposits and earnest money. I am beginning to see their motivation for voiding the contract. Can they do it?

 

[John Se]

What does you contract say?

Contracts are all custom,I doubt you Lawyer who review it would allow some sort of "void" clause. But unless you breach the contract the builder has to finish. About the $150, change orders are change orders meaning different than the plans or above and beyond the specs. I'm very surprised you not more in touch with the "builder" This is a person your speaking about right? Not some giant nameless faceless corporation with a multi-tiered voice mail system.

 

[colorado cowboy]

The builder is a local company. I met him (the owner) briefly one time, but all our contact witht the company has to go through the builder's agents. That is in our contract. I see no way for them to void our contract unless we don't live up to something on our end. The door change is different than what the plans specify, but because the door itself is an "upgrade" we were never made aware of which way it swung. Like I said, the doors are now a minor issue. I will do them myself later. I am just worried that they are looking to void the contract and then resell it to someone at the higher price without having to pay a realtor. It looks to be all about the $$ despite what their website says!

 

[John Se]

What does your contract Say?

Does the builder still own the lot? I mean this is not a contract to build on your lot? Is this a builder owned subdivision?

 

[colorado cowboy]

The builder owns the subdivision.

An update: Our realtor called the builder's representative today to ask a question and was "reminded" that we would have to have a builder's representative with us to visit the house or it would void our contract. It is becoming apparent that they are looking for a way out.