Builder fail to close on time (negotiation, construction, lawyers, rental)
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I bought a new house from Pulte which is supposed to be close by the end of this month. 12 days prior to the closing, Pulte inform me that they cannot close the house on time because of some repair work in the community.
I red through the contract and find out there is nothing stating what Pulte should be responsible if they could not close on time.
So far I see my loss will be the loan application as well as my rental, what are you guys idea on it? Will Pulte be responsible for my financial loss, should I hire a real estate lawyer?
Trust me this won't be the first fight you have with Pulte. My mother-in-law had Pulte build her home and I feel like every year I hear about some new problem that has popped up with the construction quality
I know that when she had serious problems during the construction phase she went into their office guns blazing until they were able to reach a negotiation. Before hiring a lawyer I would try speaking with them directly and let them know that the situation needs to be resolved or you will become a serious pain in their side. You may find like in her case they just concede rather than face lawyers and the like.
I bought a new house from Pulte which is supposed to be close by the end of this month. 12 days prior to the closing, Pulte inform me that they cannot close the house on time because of some repair work in the community.
I red through the contract and find out there is nothing stating what Pulte should be responsible if they could not close on time.
So far I see my loss will be the loan application as well as my rental, what are you guys idea on it? Will Pulte be responsible for my financial loss, should I hire a real estate lawyer?
Thanks
George
You can hire an attorney to read the contract and see if there is something you missed.
The contract defines the transaction terms.
Some tract builder contracts give the builder 24 months to deliver the home. Pulte may be on time, even though they do not deliver by the end of the month.
I read through the contract and find out there is nothing stating what Pulte should be responsible if they could not close on time.
Quote:
Originally Posted by evaofnc
I know that when she had serious problems during the construction phase she went into their office guns blazing until they were able to reach a negotiation. Before hiring a lawyer I would try speaking with them directly...
The lesson is that you should already have had a lawyer representing you in this transaction.
Good luck.
Contract is king. It will say exactly what should happen in this situation.
Thank you all for your reply!
On the contract there is nothing about the seller's failure to close. In this situation, would hiring a lawyer be helpful?
Was this a custom home? I'm not familiar with that builder.
I'm curious too, what type of "repair work in the community" could cause a delay on your home? Unless it is a BRAND NEW subdivision and the infrastructure wasn't completed on time, I can't think of anything that would cause a delay on construction. The only possibility I can think of is if they had to tear up the road to the point that materials couldn't be delivered, but they should have known that more than 12 days before closing. But if there really was something beyond their control, the contract most likely says they aren't liable.
Finally, did they say how long the delay would be? Are you talking a few days, in which case, your financial loss should be zero, assuming you planned correctly and gave yourself a cushion, since new construction usually closes late; or are you talking about a significant delay, like a month or more?
Was this a custom home? I'm not familiar with that builder.
Tract builder.
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