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Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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I'm a building contractor, we had a contract with a real

Customer Question

I'm a building contractor, we had a contract with a real estate investor for addition and rehad work on a residential property, our first draw was for 25,000 on completion of demolition and debris removal, investor paid our first draw, then he had change of heart, another contractor could complete the project for less money, so he breached our contract.
After deducting our cost, we offered him a refund of 9600.00 from the first draw that he had pad us, but he disputed our cost, we gave him documentation of our actual cost, but to no avail. Should we just send him a check for the 9600.00 or ?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. Can you please clarify:

1) Did you and your investor have a contract where he would pay the second draw?

2) Did you use a second contract to finish out the work once the investor backed out?

3) Was the contract with the first investor for work for the $25k, or, for more, but you cancelled the contract because your investor backed out?

This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.