Real Estate Law
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Hello and welcome! My name is ***** ***** I am a licensed attorney and will try my best to help with your situation. There may be a slight delay in my responses as I type out an answer or reply.
Did you actually sign the contract that said he got 15% of the cost to build as his pay?
Or was the set amount the $235K?
What is the reason for the cost overruns?
Do you have a contingency in your agreement that the house has to appraise for what it costs?
How much is left on the final draw?
Ok, so what is the reason the costs went up?
Ok, then that doesn't make sense because his salary is based on the cost to build, not included in that cost... So if the house cost $200K to build, he gets $30,000 as his salary, taking it to $230,000. He doesn't get to take that $200K add in the $30K and then he gets 15% of that.... that is double dipping.
With that said, I would stick firm and tell him sorry, but we agreed on a price and if you underbid it, that is not my problem. We agreed on a cost plus 15% and the cost is what the house itself costs, maybe including his worker's costs, but that is it and he gets 15% of that total...
But if he is asking for an additional $41K over what you agreed, it will be cheaper to fight him in court over that much..
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