Am I able to terminate a contract with a builder?
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Am I able to terminate a contract with a builder?
Closed on a construction loan in October 2018. Our new home is currently still in
rough construction phase. We have a lien on the property from one subcontractor.
Also, there are details of the house that are not done per the plans. Communication
with the builder is extremely poor. Takes days sometimes week for the builder to
respond to calls. They originally told us our house would be done in July and now
they are telling us October or November 2019. Also, the builder refuses to provide
us copies of the sworn statements for the construction draws.
Asked on July 28, 2019 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Based on what you write, such as 1) the contractor evidently not paying the subcontractor (which would be why he was able to impose a lien, we presume), 2) not following the plans, which are effectively part of and incorporated into the contract), 3) not cooperating with you (the lack of contact), and 4) missing the deadline by a significant amount, it appears that this contactor could be considered to breach the contract in a "material," or significant, way. A material breach of contract by one party (e.g. the builder) would let the other party (e.g. you) terminate the contract.
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