New house 8 months overdue

[bmorgan]

What is the name of your state? Alabama

My house is the first being built in a new subdivision. At the initial contract signing, the builder stated that the house could be built and sold without the main road being paved. Something about it being a show or demo home for the subdivision. Well, contruction went very slowly and at the closing date the house was only half finished. I was then told that in order to get the water main run, the road would have to be at least properly graded and positioned so the water folks would know where to lay their pipe. The road is nearly complete and the water line has been run for at least a month but no work has been done to the house in 5 months. The builder has stated that he won't sink any more money into the house unless it can then be immediately sold. The current excuse is that he's afraid that there will be a long delay while the new property is recorded by the County. It's clear that the builder is dragging his feet for some reason, but none of the excuses hold water. The builder will not give a new closing date. What are my options?

The only applicable thing I could find in the contract states that the "Seller shall have a reasonable length of time upon which to perfect title or cure defects in the title to the Property".

There is also an Agreement to Arbitrate addendum that says that any dispute will be handled by a BBB volunteer. Does this extend 8 months past the closing date?

 

[JETX]

"What are my options?"
*** Your options are pretty simple.
1) Continue waiting, or
2) Take steps to terminate the contract.

If you choose #2, you will very likely need to talk with a local attorney to read the contract and see what rights you have to terminate. Eight months is far too long to wait.

 

[HomeGuru]

I totally agree.

 

[bmorgan]

We've waited 8 months because we spent a long time to find the lot, plans, price we wanted and are very happy with what the final product can be. I should have asked, 'how can I encourage/coerce the builder to live up to the contract'?

What value is there in sending complaints to the BBB, Attorney General, etc.?

 

[JETX]

"'how can I encourage/coerce the builder to live up to the contract'?"
*** Your only 'power' is in a threat of legal action. And to find out if that is even possible, you need a qualified (attorney) review of your contract.

"What value is there in sending complaints to the BBB, Attorney General, etc.?"
*** Usually very little. The BBB only has value if the seller is concerned with their comments about his business. The AG is useless as your situation is clearly a civil matter and NOT an issue of consumer fraud.

 

[HomeGuru]

So bmorgan, what did you decide to do?

 

[bmorgan]

I hired a lawyer who sent a letter threatening legal action if the house was not completed in 30 days. I also sent a detailed letter of complaint to the Alabama Home Builders Licensure Board who claim they will have an answer within 20 days and can fine him or pull his license.

 

[HomeGuru]

good job.

 

[bmorgan]

Well, I'm now in the house but it wasn't easy. The builder was very concerned about the possible blemish on his record with the Licensing Board. That appears to have been a catalyst and I would recommend that approach to others.

There are still many problems to correct before I'll be satisfied and I've already seen the signs of already-got-the-check syndrome. I may be posting here again.

Thanks

 

[Peety]

Have you heard the term "Punch List"?

It sounds as if your new home has some flaws that were overlooked or not seen by the building inspector during final inspection.

Once you have documented this information, informed the contractor of the list of defects (punch list) and accompanied that with a letter of demand (all by registered mail of course), then get ready to send a second copy of that package to the Alabama Home Builders Licensure Board.

No matter what state you live in, the State Contractors Licensing Board is the ultimate threat to a Contractor. The Building Department can only enforce compliance with building codes, but the Board can put the guy out of business.

 

[bmorgan]

Thanks for the reply, if somewhat demeaning and redundant. Yes, I do have a punch list filled out in detail. The sales contract, blueprints, and my list of minor changes were also filled out in detail. My hope is that the former will not be ignored as were the latter.

 

[Peety]

... if somewhat demeaning and redundant ....

Don't take offense, that was not my intention.

If you didn't feel that the final inspection should have passed, take up that matter with the building department. To get action from the contractor once the house has been signed off will be a difficult thing to accomplish; and you'll probably have to proove sub-standard work and ALSO have to get the CSLB on your side as well. You may even have to get a lawyer but I'd do them in that order. Court being the last (most expensive) option, after exhausting the other avenues.

 

[bmorgan]

Sorry. Someday I hope to stop adding my own inflection to other people's text.

 

[JETX]

For the benefit of others who may review this post in the future.... a suggestion:

Once you completed your punchlist, if there were still some items that were not completed and you still wanted to close on the property, you could have asked the seller to agree to escrow sufficient funds to force them to complete the required punchlist items..... or at least enough for you to have been able to hire someone else if they refused or play 'got the check' games.

 

[HomeGuru]

Another suggestion would be to use a home inspector to help complete the punchlist.