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New Home Builder - Breaches Contract

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T

terrylmc

Guest
Hi,

I have this dilema here where my wife and I are wanting to build a new home in Texas. We have been negotiating with the builder for months then he sent me a signed contract in the mail. We went and met with him on September 26 because some of the things he had put on the contract were wrong. While we were meeting with him (the owner of the company), we mad the changes to the contract. BTW, this contract was on 2 part papaer. When we were done making the changes, my wife and I signed the contract and I kept the copy and he took the original. Well, he was supposed to fax me a document that my mortgage company needed the next day. I never received it so I called them in a few days and they said that they would send it to me. This went on for a few weeks, until October 9, I recieve a letter in the mail saying "we decline the contract under the present circumstances". I immediately draft up a letter stating my position that we have a signed contract and it is our intent to get our home built. This letter was sent certified mail. In the letter we stated that we could file suit for specific performance or solicit bids from other home builders and file suit for any difference in costs. We gave them 3 days to get back in contact with us. Naturally, no one called so my wife and I not wanting to have to use legal action unless necessary, call them up and they finally answer the phone. The lady on the phone (the builder's wife) tells us that the owner of the company was confused with the contract. I went over everything line by line with her and she said she would give it to him and get back to us. Well, after calling every day, they are now avoiding our calls. We sent them another letter stating that if we did not meet this weekend, we would pursue legal action.

I feel that I have a very strong case if it goes to court. My only concern is that since he sent me a signed contract and we signed it in front of him while we all made the changes we discussed to the contract, does that hurt my chances? If I have to file suit, can I sue him for my attorney costs? If there are any changes in interest rates or other charges incurred from my mortgage company for this delay, can those be brought into the suit also?

Thanks for your help!
Terry
 


HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by terrylmc:
Hi,

I have this dilema here where my wife and I are wanting to build a new home in Texas. We have been negotiating with the builder for months then he sent me a signed contract in the mail. We went and met with him on September 26 because some of the things he had put on the contract were wrong. While we were meeting with him (the owner of the company), we mad the changes to the contract. BTW, this contract was on 2 part papaer. When we were done making the changes, my wife and I signed the contract and I kept the copy and he took the original. Well, he was supposed to fax me a document that my mortgage company needed the next day. I never received it so I called them in a few days and they said that they would send it to me. This went on for a few weeks, until October 9, I recieve a letter in the mail saying "we decline the contract under the present circumstances". I immediately draft up a letter stating my position that we have a signed contract and it is our intent to get our home built. This letter was sent certified mail. In the letter we stated that we could file suit for specific performance or solicit bids from other home builders and file suit for any difference in costs. We gave them 3 days to get back in contact with us. Naturally, no one called so my wife and I not wanting to have to use legal action unless necessary, call them up and they finally answer the phone. The lady on the phone (the builder's wife) tells us that the owner of the company was confused with the contract. I went over everything line by line with her and she said she would give it to him and get back to us. Well, after calling every day, they are now avoiding our calls. We sent them another letter stating that if we did not meet this weekend, we would pursue legal action.

I feel that I have a very strong case if it goes to court. My only concern is that since he sent me a signed contract and we signed it in front of him while we all made the changes we discussed to the contract, does that hurt my chances? If I have to file suit, can I sue him for my attorney costs? If there are any changes in interest rates or other charges incurred from my mortgage company for this delay, can those be brought into the suit also?

Thanks for your help!
Terry
<HR></BLOCKQUOTE>

You have made several mistakes and one of them has been in acting as your own attorney. You need to hire an attorney. Some other mistakes were threatening legal action and not following up and also talking over the contract with the builders wife who is not even a party to the contract.
 
T

terrylmc

Guest
--&gt; You have made several mistakes and one of them has been in acting as your own attorney. You need to hire an attorney. Some other mistakes were threatening legal action and not following up and also talking over the contract with the builders wife who is not even a party to the contract.

Hi, Thanks for the reply. We have had an attorney look over the first letter before we sent it. Unfortunately, the only person we could talk with is the wife, since the owner is always out working and is not returning calls.

A new interested twist is this morning we drove by their model home and picked up a new brochure. Guess What! They have seemed to have raised their prices! Now we see exactly why we are having this problem. I also have the brochure from when we signed the contract that has the lower price!
 

HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by terrylmc:
--&gt; You have made several mistakes and one of them has been in acting as your own attorney. You need to hire an attorney. Some other mistakes were threatening legal action and not following up and also talking over the contract with the builders wife who is not even a party to the contract.

Hi, Thanks for the reply. We have had an attorney look over the first letter before we sent it. Unfortunately, the only person we could talk with is the wife, since the owner is always out working and is not returning calls.

A new interested twist is this morning we drove by their model home and picked up a new brochure. Guess What! They have seemed to have raised their prices! Now we see exactly why we are having this problem. I also have the brochure from when we signed the contract that has the lower price!
<HR></BLOCKQUOTE>

Good investigative work.
 

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