Real Estate Law
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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.
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.
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.