I purchased a new condo several months ago. Since then, the builder has not completed the condo, interest rates have risen dramatically, and my moving costs continue to increase. What actions can I take against the builder?

Your purchase agreement is a legal contract that will be enforced by the court of law. If that legal contract contains a specified closing date, and that date has passed, then the builder may be considered to be in breach of the contract. As such, you may be able to collect your damages by filing a breach of contract suit.

Understanding a Breach of Contract

Contracts are made and formed by people every day. Assuming they meet all the requirements of a valid legal contract (i.e. are in writing if necessary, are made by people over 18 and of sound mind, etc.) these contracts become legally enforceable promises. If a promise written in one of the contracts isn’t kept, then the party who endures the broken promise gets the legal right to sue for breach.

This being the case, one option that you have is to sue the builder for breach of contract. This would mean going to court, proving the breach and showing that you were damaged in some way. If you choose this option, then you should be able to get your money back for any actual damages from the court. Exactly how much you get back is going to depend on exactly how much you lost. For example, if you move into the condo anyway, then you might get back the exact amount you will have to pay out in extra interest (provided you can prove you’d have locked in a lower rate loan otherwise) as well as the extra costs for moving. It is important to note that you’ll be awarded only your actual damages (real, provable financial losses) in most cases.

You may also have other options. For example, you may be to review your contract to see if there is a way to terminate for breach or to see if there are any penalties specified in your contract for delay. You might be able to hire a new builder and sue your old builder for the costs you pay out to the new person to finish the undone work. You may be able to negotiate a new deal with the builder at a lower price to make up your costs.

These are just a few examples of your potential options. You should consult with a lawyer to find out the best way to proceed.

Case Studies: Dealing With Builder Delays and Increased Costs

Case Study 1: Taking Legal Action for Breach of Contract

A homeowner purchased a new condo that was not completed on time, leading to increased interest rates and moving costs. The homeowner is considering taking legal action against the builder for breach of contract.

By filing a breach of contract suit, the homeowner can seek compensation for the damages incurred. This  highlights the option of suing the builder, proving the breach, and demonstrating the financial losses suffered as a result. Consulting with a lawyer is essential to determine the best course of action in this situation.

Case Study 2: Exploring Contractual Remedies

A homeowner facing delays and rising costs with their condo construction explores alternative remedies within the contract. The homeowner examines the possibility of terminating the contract for breach or seeking penalties specified in the agreement.

Another option considered is hiring a new builder to complete the unfinished work and then suing the original builder for the additional costs. Negotiating a new deal with the builder at a lower price is also explored. This emphasizes the importance of carefully reviewing the contract and consulting with legal professionals to explore all available options.

Case Study 3: Seeking Legal Counsel and Guidance

A homeowner who purchased an unfinished condo seeks legal advice to navigate the situation effectively. The case study emphasizes the need to consult with a lawyer who specializes in real estate and contract law. By seeking professional guidance, the homeowner can gain a better understanding of their rights, the available legal options, and the potential outcomes. This case study highlights the importance of finding the right lawyer to handle the specific legal issue at hand.