C
chucker34
Guest
What is the name of your state? Minnesota
My wife and I signed a "proposal" with a builder to construct a house for a said amount. The proposal says we have to put a certain amount down before construction begins (expected to begin in June). The builder said if we gave him $5,000, a small, yet somewhat substantial amount of earnest money (or portion of that downpayment), he would hold our spot and we could give him the rest of the first draw from our construction loan shortly before construction began.
But then last month the builder called to tell us that material costs were skyrocketing and he ordered the lumber/drywall/wallboard, etc. from the lumberyard before prices got out of hand. So now he wants the rest of the first draw "as soon as possible." He is extremely reputable in our area and got our business off of several references who we know well. He is also very pleasant about the whole situation. He hasn’t mentioned raising prices but is interested in when we can get him the rest of the first draw so he can cover the materials he ordered.
And we’re trying to get him that money but we first need to get an abstract and title work completed (lender says minimum of four weeks) which can’t even begin until they survey and legal description is revised (surveyor said 7-10 days but its been four weeks and he’s not close to finished – I don’t think we’re his top priority because he keeps rescheduling crews and workers assigned to our project.). I told the builder we hoped to get him the money by the end of April a week or two ago and he said “yes, I hope so.” But at the rate this process is moving, I think mid-May would be optimistic to get him the money.
The builder hasn’t mentioned raising prices once but do you think he has any right to raise prices since we haven’t delivered the rest of the first draw? The proposal just says that money is a “downpayment.” It doesn’t say it has to be paid by a certain date and he verbally told us that we didn’t have to give it to him right away, just before construction begins. I guess the document we signed says “proposal” but it is a detailed document and just above the signatures it reads “Acceptance of Proposal – The above prices, specifications and conditions are satisfactory and are herby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.” Would he have to offer us a new proposal to raise prices and could he break from the old one? Thanks.
My wife and I signed a "proposal" with a builder to construct a house for a said amount. The proposal says we have to put a certain amount down before construction begins (expected to begin in June). The builder said if we gave him $5,000, a small, yet somewhat substantial amount of earnest money (or portion of that downpayment), he would hold our spot and we could give him the rest of the first draw from our construction loan shortly before construction began.
But then last month the builder called to tell us that material costs were skyrocketing and he ordered the lumber/drywall/wallboard, etc. from the lumberyard before prices got out of hand. So now he wants the rest of the first draw "as soon as possible." He is extremely reputable in our area and got our business off of several references who we know well. He is also very pleasant about the whole situation. He hasn’t mentioned raising prices but is interested in when we can get him the rest of the first draw so he can cover the materials he ordered.
And we’re trying to get him that money but we first need to get an abstract and title work completed (lender says minimum of four weeks) which can’t even begin until they survey and legal description is revised (surveyor said 7-10 days but its been four weeks and he’s not close to finished – I don’t think we’re his top priority because he keeps rescheduling crews and workers assigned to our project.). I told the builder we hoped to get him the money by the end of April a week or two ago and he said “yes, I hope so.” But at the rate this process is moving, I think mid-May would be optimistic to get him the money.
The builder hasn’t mentioned raising prices once but do you think he has any right to raise prices since we haven’t delivered the rest of the first draw? The proposal just says that money is a “downpayment.” It doesn’t say it has to be paid by a certain date and he verbally told us that we didn’t have to give it to him right away, just before construction begins. I guess the document we signed says “proposal” but it is a detailed document and just above the signatures it reads “Acceptance of Proposal – The above prices, specifications and conditions are satisfactory and are herby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.” Would he have to offer us a new proposal to raise prices and could he break from the old one? Thanks.