The builder of your new home must abide by his or her contractual obligations, which you and the builder agreed to before you decided to purchase the property. Failure to adhere to the terms of the contract could result in the builder being liable for financial damages.
The list of potential contractual violations made by the builder of a new home is virtually endless. Here are three common examples of the kind of contractual violations new home buyers commonly encounter:
Failing to follow-up on issues identified in the walk-through: When you do your final walk-through of your property after the builder says it has been completed, it’s not uncommon to identify issues that the builder needs to correct. The builder must repair these issues in a timely fashion. However, your builder might try to dispute these defects and fail to repair them. If you’re in this situation, be sure to consult with a real estate lawyer to ensure that your builder fulfills its contractual obligations.
Failing to build your home to appropriate specs: Builders sometimes fail to build a home according to the specifications to which the buyer agreed. This could result in all work being stopped in order to assess what needs to be done and enforce the terms of the building contract.
Failing to refund a down payment: When a builder fails to fulfill its contractual obligation, the homebuyer has every right to back out of the purchase contract. If this occurs, the builder must return the down payment. If the builder refuses, the homebuyer may need to file a lawsuit to get his or her money back.
If you’re experiencing these or some other contractual disagreement with the builder of your new home, reach out to a qualified real estate attorney for legal guidance and assistance.
Source: HADD, “Common Defects in New Home Construction,” accessed Oct. 27, 2017