What are my rights if I’m buying a spec home that may not be completed on time?
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What are my rights if I’m buying a spec home that may not be completed on time?
The contract completion date was 3 weeks ago. I have had to change closing date 3 times on the house and had to extend my lock on interest rate for financing 2 times already. The new closing date for the house is next week. However there are several things left incomplete and I’m afraid contractor will not have these things complete before closing date. What should I do?
Asked on September 19, 2015 under Real Estate Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Unfortunately, since we assume you want to go through the transaction and get the house, one of the options when the other party keeps violating the contract--treating the contract as terminated and walking away from the transaction--is most likely not available.
Given that, your main recourse, as a practical matter, is to sue your contractor for breach of contract after the closing, when you can bring a legal action seeking compensation for 1 anything not completed i.e. suing for either the value of the work left undone, or for the cost to complete and for any other costs you incurred due to the failure to honor the contract and complete on time.
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