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This sounds like a larger builder. Stay on them. You will probably need to have your lawyer write them a letter demanding proper response per the contract or they will just wait you out.
Update: just got a e-mail from the builder:
"Apologies for the delay in getting back with you. I got your message from the office this morning. I am meeting with our partner on this deal today to discuss this and several other items. I will be in touch today with an answer. Thanks for your patience. "
Update: just got a e-mail from the builder:
"Apologies for the delay in getting back with you. I got your message from the office this morning. I am meeting with our partner on this deal today to discuss this and several other items. I will be in touch today with an answer. Thanks for your patience. "
Email him back to let him know you will be calling him by 3 pm. Make sure he doesn't "knock off early" for the weekend without getting back to you.
Update: just got a e-mail from the builder:
"Apologies for the delay in getting back with you. I got your message from the office this morning. I am meeting with our partner on this deal today to discuss this and several other items. I will be in touch today with an answer. Thanks for your patience. "
I predict a non-committal, vague response. Something along the lines of: sorry, irrelevant excuse, stupid reason, we will get right on it as soon as you sign the extension.
If you intend to continue with this company, I would only sign the extension if they include a liquidated damages clause. This way you stand a chance of being compensated if they continue to run late. Talk to a lawyer about the concept of liquidated damages, many people think if this as a penalty, but it is more a cost recovery.
I would also ask to see audited financial statements, then gave a qualified accountant review them.
I doubt that a builder would agree to either liquidated damages or supplying audited financials though. i would want to walk away from any company that operated like this.
Hi everyone - thanks again for all the support with this dilemma. Here is the response I got from the builder via e-mail:
"Thanks for your patience. I have reviewed the entire situation and made some decisions. Please be aware I am not avoiding your phone calls…… In these situations I prefer that we discuss over email so there is a record of what we discussed to avoid misunderstanding and confusion. There are a few factors to consider."
"The development was not done by us. There was no way to control it [the delays] or “absorb” delays and account for potential closing dates of homes. We had been clear at the time of contract the start date was undetermined. It has been proven to me that we have communicated all along that homes have not been permitted or started. I feel like we have done exactly what we said we would do. The process of development and the timeliness of the development contractor are absolutely no reflection on our ability to complete the home. "
"We decided we have to hold the line across the board on compensation for delays so we will not be able to offer that."
"I understand if you prefer to walk away from the deal. That is certainly your decision."
"We have increased the sales price since, so remember there is equity built into your deal. I will be out of town this weekend and Monday. I would suggest taking some time to think about the decision and let me or the realtor know. Thank you. "
As I said. A completely non-commital response. I see no dates, promises or guarantees. Just a vague apology, some random excuses, some buck-passing, a sales pitch, and the acknowledgement that you can walk away, but without an offer of a full refund.
It seems that you did not have a contract with the developer, but rather with some third party? That adds a new twist to things, as it seems the people with whom you signed a contract have some wiggle room as a result. I suspect that it is merely a paper shell setup to allow them this wiggle room, but it probably makes it more complicated legally.
You have two options. Accept the terms this guy is giving you, which means that you have zero assurance about any completion date, or....
Follow the advice of people on this thread. Take the communications back to your lawyer and stop talking to this guy. Get the lawyer to tell you if you are getting your deposit back, then have all future communication go through counsel.
Who was the development done by? What was the name of the company you signed the original contract with and what is the name of the company that sent you the email. This is very confusing to me. We are missing so much information that its difficult to help you. Short of publishing your entire contract and all email on here my advice and the advice of the others is to stop talking to them and see what your lawyer says to do.
Fishbrains said it nicely. Get your money back and find something else. This is a sinking ship.
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