Builder Closed for a price now broker expect overage money returned

[quincy]

The paper work I guessing is going to show the overages went past the limit of the loan( sales price)and so the buyer is owed the money. The thing is I will be paying for those overages out of my pocket. So the customer will get an upgraded security system, windows. extended patio and here is the weirdest thing he will get. When we contracted to build they insisted on their own designer who was a relative. When the framing was complete there was a design flaw that required a $7,000 correction. The buyer argued that we we should of caught that mistake earlier. Rather than argue I agreed to pay for half. Now I am being told that his half is an overage that has to be paid back. Its one of the checks I received from him.

It is definitely a mess. I am glad you have an appointment with an attorney who can personally review everything for you. The members of this forum can only make guesses - and our guesses could be wrong.

 

[smutlydog]

I spoke with with an attorney. He said the contract has a a provision that calls for any changes to be done in writing. There are none other than email exchanges so if I am going to be sued by the customer for the money the case becomes a case of material fact which the attorney said is hard to prove. The attorney said I should go get my money. There is something else about this case that I haven't mentioned. Its embarrassing. My stepson who I pay as a contractor handles the construction end. We share an email account. He crossed boundaries and was heavily involved in negotiating this big mess through email exchanges.

 

[quincy]

... My stepson who I pay as a contractor handles the construction end. We share an email account. He crossed boundaries and was heavily involved in negotiating this big mess through email exchanges.

That’s unfortunate.

If the attorney you saw read over the contract and the email exchanges and reviewed with you all of the facts, and the attorney said you should pick up the check, well ... I guess you should pick up the check.

You might tell that attorney to stay close by, though, because the homeowner is likely to sue.

Good luck.

 

[smutlydog]

Part of me wants to pay the money and get this behind me. I don't want to fight but I think my broker should pay for at least part of this problem.

 

[quincy]

Part of me wants to pay the money and get this behind me. I don't want to fight but I think my broker should pay for at least part of this problem.

Based on what you have described, I agree that the broker should be responsible for paying at least some of the money refunded to the homebuyer, if it is decided a refund is necessary. The errors appear to come in the billing.

Good luck.

 

[LdiJ]

Based on what you have described, I agree that the broker should be responsible for paying at least some of the money refunded to the homebuyer, if it is decided a refund is necessary. The errors appear to come in the billing.

Good luck.

I am still not certain that there were any errors in billing. I would not encourage the OP to reimburse the buyer anything at all at this point.

 

[quincy]

I am still not certain that there were any errors in billing. I would not encourage the OP to reimburse the buyer anything at all at this point.

It would take more information for us to know if the homebuyer was overcharged or double billed for something. The broker after a review seems to think the housebuyer is due a refund.

Whatever happened to raise the issue of a refund, smutlydog’s attorney apparently has told smutlydog s/he could pick up the check. I personally think smutlydog should hold off spending any of the money for awhile, though, in case the housebuyer decides to sue.

 

[smutlydog]

My stepson and the broker negotiated for a lower price behind my back without signed change order amendments and not making changes to the original contract price. It was all done through email exchanges some of which came from my email account. So the customer ended up with a sweet deal with more overages than he bargained for since he went over the loan amount. I on the other hand lost my shirt on this project.

 

[quincy]

My stepson and the broker negotiated for a lower price behind my back without signed change order amendments and not making changes to the original contract price. It was all done through email exchanges some of which came from my email account. So the customer ended up with a sweet deal with more overages than he bargained for since he went over the loan amount. I on the other hand lost my shirt on this project.

Lesson learned, I guess. I suggest you find a new broker and stop doing business with your stepson.

 

[smutlydog]

Lesson learned, I guess. I suggest you find a new broker and stop doing business with your stepson.

The problem with that is I have 3 more signed contracts to build. I am about a quarter of the way through the construction. Once that's that done I am out with these 2 and my will is going to be modified. My family has been putting a lot of pressure on me to dis own my stepson. He is 36 years old and betrayed the man who sacrificed 15 years of his like for him.

 

[quincy]

The problem with that is I have 3 more signed contracts to build. I am about a quarter of the way through the construction. Once that's that done I am out with these 2 and my will is going to be modified. My family has been putting a lot of pressure on me to dis own my stepson. He is 36 years old and betrayed the man who sacrificed 15 years of his like for him.

I agree that’s a problem.

I suggest you dissolve your joint-email account and keep all transactions in paper form from now on.

 

[LdiJ]

It would take more information for us to know if the homebuyer was overcharged or double billed for something. The broker after a review seems to think the housebuyer is due a refund.

Whatever happened to raise the issue of a refund, smutlydog’s attorney apparently has told smutlydog s/he could pick up the check. I personally think smutlydog should hold off spending any of the money for awhile, though, in case the housebuyer decides to sue.

I very much disagree. Perhaps holding onto the amount of the money that is in dispute might be a valid approach for safety's sake, but there is absolutely no reason whatsoever to hold on to the entire proceeds. The OP is going to have suppliers/bills to pay as well as subs and perhaps employees. There is no reason to cause himself that kind of hardship.

I also think that it is quite questionable whether or not the buyer has been double billed. Knowing how the accounting for construction works I think it is not necessarily impossible, but not very likely. For a double billing to have happened the OP himself would have had to do it. Since the OP was charging for upgrades separately from the original price that is not very likely.

 

[quincy]

I very much disagree. Perhaps holding onto the amount of the money that is in dispute might be a valid approach for safety's sake, but there is absolutely no reason whatsoever to hold on to the entire proceeds. The OP is going to have suppliers/bills to pay as well as subs and perhaps employees. There is no reason to cause himself that kind of hardship.

I also think that it is quite questionable whether or not the buyer has been double billed. Knowing how the accounting for construction works I think it is not necessarily impossible, but not very likely. For a double billing to have happened the OP himself would have had to do it. Since the OP was charging for upgrades separately from the original price that is not very likely.

I stand by my advice.

 

[LdiJ]

I stand by my advice.

You are really going to stand by the advice to hold the entire proceeds of the sale because a percentage of it is in dispute? That is really bad advice Quincy.

 

[quincy]

You are really going to stand by the advice to hold the entire proceeds of the sale because a percentage of it is in dispute? That is really bad advice Quincy.

I disagree it is bad advice. The money apparently is in dispute. It is likely to be easier to not spend it than it would be to acquire the same amount again, should the money need to be refunded.