Question regarding Construction delay and options? (2013, mortgage, home builders)

[htownrocks]

We signed a contract in Feb for a house to be completed by early August 2013 and came to know that the builder still did not start the construction. It’s been almost 3 months that I signed the contract

Please let me know what options I have. Is it possible to request the builder some compensation? Part of me also is scared about the mortgage rates and if I know a proper closing date I can lock in a rate.

[dickelfan]

What builder are you using, and what area of town? Sorry...but if it is a pretty good size house you won't be finished by August. Did the contract say when he was to start construction? If not all he has to do is have it completed by then. If it goes through...I'd make damn sure to have it inspected with a fine tooth comb!

Did you have a realtor help you with this? If so make them earn their money and find out what is going on. If not I'd send a certified letter to the builder asking for an update as to why construction hasn't started, and how they expect to be completed by the timeline.

[pinklj123]

Usually it does not take 6 months long to build a house, if they start right over, 3 months is enough. But when you sign the contract, saying complete 6 months later, the builder is either not done with the land permit, or the builder needs to finance first and then start building.
At least you can ask what is the reason. A good builder will not lie to you.

[desertsun41]

Originally Posted by htownrocks

We signed a contract in Feb for a house to be completed by early August 2013 and came to know that the builder still did not start the construction. It’s been almost 3 months that I signed the contract

Please let me know what options I have. Is it possible to request the builder some compensation? Part of me also is scared about the mortgage rates and if I know a proper closing date I can lock in a rate.

I feel like going into detail here but I suspect you'll never be back. Nearly all one hit one post wonders post a question and then never come back to read the answers. Since you have not been back in 2 days according to your log in times, I'll be short.

The previous answers assumed construction has started but going slow. Sounds to me like you said as I bold highlighted that they never started since you signed the contract which you said you signed 3 months ago, "You came to know" they did not start you say? That suggests you just found out 3 months later. Didn't you drive by the site to witness construction as any other curious anxious person would?

The construction industry has been devastated in this very bad economy. There are many businesses out there, especially Home Builders are taking deposits for a new home and using these funds to finish old ones and pay salaries. One needs to be VERY careful with small Builders in this economy. Countless Home Buyers have lost deposits on their new home when a Builder did a belly flop.

As others have suggested, a contract will have start and estimated completion dates. If these are not met, the Builder breached their end which voids the contract............or they come to you to discuss why and renegotiate a new date................or you tell them to go pound sand and get your entire deposit back.

I assume this is a small spot Builder. This nearly never happens with any larger tract Builder. Beware.

[dd1153]

There is somethings to take into consideration. First is a 3 month build time. Is that reasonable? Would you wzntyour home built in 90 days...?

Are the lots ready (utilities)?
Is the developer waiting on a letter of map revision for flood plane?
Is there substantial completion of roads (no start permits issued if not)?

Builders want to build fast. Often time delays are on the county level with permits, or the developer needs to finish out lots.

Lots of variables and each development is different.

[htownrocks]

Originally Posted by desertsun41

I feel like going into detail here but I suspect you'll never be back. Nearly all one hit one post wonders post a question and then never come back to read the answers. Since you have not been back in 2 days according to your log in times, I'll be short.

The previous answers assumed construction has started but going slow. Sounds to me like you said as I bold highlighted that they never started since you signed the contract which you said you signed 3 months ago, "You came to know" they did not start you say? That suggests you just found out 3 months later. Didn't you drive by the site to witness construction as any other curious anxious person would?

The construction industry has been devastated in this very bad economy. There are many businesses out there, especially Home Builders are taking deposits for a new home and using these funds to finish old ones and pay salaries. One needs to be VERY careful with small Builders in this economy. Countless Home Buyers have lost deposits on their new home when a Builder did a belly flop.

As others have suggested, a contract will have start and estimated completion dates. If these are not met, the Builder breached their end which voids the contract............or they come to you to discuss why and renegotiate a new date................or you tell them to go pound sand and get your entire deposit back.

I assume this is a small spot Builder. This nearly never happens with any larger tract Builder. Beware.

Thank you for a detailed message, I am a kind of a curious person and was driving to the site every weekend. I called the realtor several times and they mentioned that they have all the permissions and the builder is ready to start, that's the same reply from last 2 months. The contract doesn't say anything about a start date, but have the closing will be on or before 31 August.

? The worst part which drives me crazy is I don't get a firm reply from the builder or the realtor .

What are my options?
Is it possible to sell the house(which to be constructed) to some one new , If it goes for more than what I agreed for?
Can I re-negotiate on the date and request to give some upgrades?

[Michelle Morris]

At this point, have they done anything that is a breach of contract? There is no set start date, and the 6 month deadline isn't here yet. Even though it isn't looking good, they haven't really done anything wrong... yet.