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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55711
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I am building a new construction residence, and our builder

Customer Question

I am building a new construction residence, and our builder is pushing back the closing date beyond the written terms of our contract. This has the potential to cost my thousands of dollars in interim housing expenses, moving and storage expenses. If the extend it further it has the potential to affect or mortgage rate lock.
Do I have any options for obtaining compensation for their default?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Richard replied 2 years ago.

Hi there. My name is ***** ***** I look forward to helping you.

Can you provide me a bit more information? Does the contractor have any basis for the delay....force majeure, change orders, etc.? Does your contract address the issue if the builder defaults by failing to timely complete the house? Thanks.

Customer: replied 2 years ago.
The delays exist in part due to obtaining access to city services, and therefore the relevant occupancy permits. There has been no mention of anything regarding our existing change orders that would have affected to closing date. I've only received anecdotal information from my real estate agent that our expected closing date of Sept. 30 is now looking to be closer to Oct. 15. Our original contract stated Sept. 10 (with a concession by the buyer (me) to one 30-day extension if necessary) and was revised to the language I have attached in a subsequent amendment. I've attached a screen capture of the current language.
Customer: replied 2 years ago.
My assumption is that I reserve the right to walk on the deal - but the housing market in Nashville is booming, so it would cost me more today to obtain the same house I signed up for earlier this year, were I even able to obtain access to a comparable home. The seller could likely obtain more than our current asking price within 45 days, so I don't see any real motivation for the seller to make any concessions. But it is looking more and more likely that their delays will cost me money... so... shrug. I don't want to spite myself, but also I don't want this to drag on for very long. And I'm concerned I may not have any options.Thanks for the help!
Paul
Expert:  Richard replied 2 years ago.

Paul...thanks for responding. You do have recourse here. Because the builder is in default by not being ready to close on or before the closing date, the options for your remedies belong to you, not your builder. So, you have no obligation to simply terminate. Rather, you can close and sue the builder for damages caused by the builder's default. This would include any additional costs you incur such as increased interest rate, room and board during the delay period, and any storage or duplicative moving costs due to the builder's default.

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