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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 39407
Experience:  Texas Attorney for 30 years dealing in real estate
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Please tell me how much of a percentage I may withhold until

Customer Question

Please tell me how much of a percentage I may withhold until the project is complete.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Ray replied 6 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Expert:  Ray replied 6 months ago.

It is customary to withhold five to ten percent of the total contract dollars as a completion retention.This has two purposes to ensure completion but that any sub contractors have been paid and signed release.It is good business practice to have ten percent withheld and protects against failure t o complete or pay the subs.It is pretty standard in the industry to pay draws here as it is completed, the final 10 % is paid after completion and release.

I appreciate the chance to help you tonight.Thanks again.

Expert:  Ray replied 6 months ago.

It is possible for you to withhold more here if the amount of completion as you state is less here.Twenty percent is not unreasonable if completion is lagging and you have legitimate concerns about the house.This would give you so0me funds if you have to complete it using someone else and suing the builder.