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Old 05-05-2007, 08:41 PM
 
125 posts, read 445,192 times
Reputation: 142

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: So this is the problem. Nov. '06 I was recommended to this builder in GA by a friend of mine who is also acting as my agent. I showed him a model home that I was interested in building on his lot and he said he could do it with no problems for about $800,000. I agreed and we went into contract. He said he needed $45,000.00 as a deposit which would be nonrefundable if I breached the contract or if after he builds the home, we can't get a mortgage. It will be refundable only if he can not build the home according to the contract. My "FRIEND", the agent backed this builder 100%, and because I trusted her and had no doubt I wanted and could afford the home I agreed.

Since Nov.06 this builder has insisted I get pre-approved by two different banks of his choice(I did), and still has yet to lay the foundation for the home. The second bank who pre-approved us said the builder is trying to get a loan from them and they may not approve him or just may approve a partial loan. His designer is charging us for a host of upgrades, which I thought were included in the price and since Dec.06 he has promised every week that he will begin laying the foundation up untill now. He has complained that he spent over $30,000 just to clear my lot.

I am starting to believe that he may not have the financial backing to build my home and he can't afford to refund my deposit, so he's giving me the run around. This is the first home I am building from the ground up and I feel really lost in the whole process. Does it usually take this long to start building once the contract is signed?
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Old 05-05-2007, 08:45 PM
 
Location: Marion, IN
8,191 posts, read 29,274,980 times
Reputation: 7294
There should have been a completion date in your contract. Either way, if this were me I would be looking for a lawyer.
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Old 05-05-2007, 09:09 PM
 
125 posts, read 445,192 times
Reputation: 142
The completion date is August 31. I'm nervous because this is a 7000 sqft home and time is drawing near. I did see a Lawyer but, he said bringing him in may make matters worse . I don't want to act prematurely, but I don't know WHEN to act.
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Old 05-06-2007, 06:44 AM
 
19,284 posts, read 25,821,446 times
Reputation: 37385
Quote:
Originally Posted by justone321 View Post
The completion date is August 31. I'm nervous because this is a 7000 sqft home and time is drawing near. I did see a Lawyer but, he said bringing him in may make matters worse . I don't want to act prematurely, but I don't know WHEN to act.

hiya just, i would IMMEDIATELY consult with a lawyer, just to see what ground you stand on,,of course he doesnt want you too, its not in the best interest with him!

hindsight is easy,,,and not knowing the complete details, its difficult to judge,
but, id be a bit nervous being in your shoes, also,, have a sit-down meeting with your broker friend,, get as much info off her as possible,, set up a timeline/checklist,,of what YOU initially understood was going on,,and do another for whats actually happening,,,,,,and express what YOU need to have happen,,to feel more secure,,,
now isnt the time,,to be "nice" you have 45k in the balance.....try to get as much in writing ,,(timelines, dates, etc) as you can from this builder,,,
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Old 05-06-2007, 08:27 AM
 
Location: Washington
90 posts, read 363,600 times
Reputation: 103
What does your contract say is the agreed upon cost to build the home?

The additional cost for upgrades: Are these items not spelled out in the contract or not on the approved set of drawings. If they are not covered in either of these places you may be out of luck.

Not to sound to harsh here but his complaining about the cost to clear the lot is his problem, not yours. He gave you a price to build you a home there.

I personally would hire a lawyer and find a way out of this contract as quickly as possible. If you are having these kind of problems before the foundation is even poured, you are going to be in for one heck of a ride before your home is completed and I shutter to think what the final cost will end up to be.
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Old 05-06-2007, 08:46 AM
 
Location: Marion, IN
8,191 posts, read 29,274,980 times
Reputation: 7294
I agree. You have a contract. While the completion date has not arrived yet I would be scared to death of a house that size being built in 3 months and being correct, up to code, etc.

I have worked for sub-contractors of major homebuilders. It takes longer than your builder has left to do it, and do it the right way. Never mind waiting on inspectors.

Get your lawyer involved. You may find out that the builder is looking for an out, especially if he is not able to get the financing he needs.
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Old 05-06-2007, 11:36 AM
 
125 posts, read 445,192 times
Reputation: 142
Thanks for all the great info! Spoke to the builder and he says he doesn't give timelines because he doesn't like to be rushed. I had to fight with him to see the working drawing plans of my home and it did not include sq footage so I had to call him for the room measurements. He says he doesn't usually give clients a copy of the working plans.What SHOULD I expect as the buyer?
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Old 05-06-2007, 01:12 PM
 
125 posts, read 445,192 times
Reputation: 142
Default Well I guess this is the end folks...

Just received a call from the builder and he says he is not continuing on with the construction of the house. He says there is a new law in GA which says that anyone who is building a home in GA must have employment IN GA. So although we have TWO pre-approvals from TWO DIFFERENT banks we still are not aproved in HIS eyes. He says he spend all $45K in clearing my lot so he is not refunding our money. I will now speak to a Lawyer, but to what avail?
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Old 05-06-2007, 01:41 PM
 
Location: Marion, IN
8,191 posts, read 29,274,980 times
Reputation: 7294
He is lying to you. It does not cost $45k to clear a lot. He is trying to scam you.

I have never heard such BS in my life. I can't find any reference to a law that requires employment in the state to build a home.
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Old 05-06-2007, 02:27 PM
 
125 posts, read 445,192 times
Reputation: 142
Evey, I hope you are right. He said the new law has been out for 3 months. Our second pre-approval was in Feb 07, and the bank did not mention anything about it. All I can do now is see what the Lawyer's gonna do.
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