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Negotiation Skills Company, Inc.

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We Signed A Contract And The Price Keeps Rising

From: Dan, Delray Beach, Florida

Question: My wife and I bought a condo that is being constructed. It will be done in December of this year. The purchase contract says that all extras will be paid for at the time of closing.

We were asked to approve the list of extras under the pretense that everything be done right. There were numerous errors on the list and we focused on getting the list correct. We did not notice that in very small print that there was a sentence that said once we approve the list the the funds for the extras were due at the time of signing.

I would like to work on this issue and another on relating to $4100 worth of wiring that was done and not authorized. I could get the wiring done for under $2000. As long as it is there I would pay around $2000. The person that I need to work this out with will not talk to us. He does not return calls. I wrote a letter expressing our position...I now think that was an error...and he has gone to a letter writing mode with demands that we pay for the extras and the wiring.

My wife and I are concerned for several reasons...no talking, we are going to live there, we do not want any problems, we do not like this tactic of changing the rules from the purchase contract, we wonder what else might come up, there are still lots of things to decide for us by the builder like parking spots and date of closure...

I am willing to make installments ($50,000 total) of $10,000 a month...pay something for the wiring that my sound guy did not have the opportunity to inspect and does not know if it is right.

It is a waste of time to go to court or anything else...I feel that we can resolve this if he would talk to us.

Response: You have multiple issues to deal with here. The first is dealing with the person who is selling you the property. If he will not negotiate with you, you need to get his attention. Unfortunately you have a signed contract that governs almost all of your actions -- and you have a legal obligation to fulfill that contract.

If the seller is in contravention of the contract, that opens up discussion of the issue(s) where he is in breach of the contract. In most jurisdictions a contract is required for any transaction with a value of more than $100 or which relates to property. Thus, on the electrical wiring which does not have a written agreement behind it, it seems appropriate to make it clear that, before you spend the additional money a discussion is needed.

You should also take a long, hard look at how much it would cost you to get out of the deal entirely. Even though most sellers disappear after the work is done and the property becomes yours, you don't want to run the risk of long term problems. So look closely at the contract to see if you have any 'outs'.

If the contract requires you to make up-front payments, and if you can claim that the seller is in breach of any details at all, you can withhold those payments to get his attention. "I will happily pay if you will have enter into discussion with us about some issues we find troublesome."

When I was in law school my Property professor said "The landlord-tenant relationship is the second most passionate known to the law." While your situation is not landlord-tenant, the situation is similar.

It could make a lot of sense to contact other buyers to see whether you have common grievances and determine whether acting together might mean the whole group has more strength. Perhaps a group of buyers could even hire a lawyer to examine the contract to look for options for getting it improved. You might also find out what kind of resources are offered by State or private agencies in the area of consumer protection.

What you need to do examine the emotional quality of your communication with the seller -- on both sides. Perhaps you will find issues that may bring him closer to wanting to deal directly with you. It is important to avoid taking the seller's stonewalling personally; separate the person from the problem. Taking it on as an emotional as well a financial issue does you no good from a personal or business standpoint -- and probably makes no difference to the seller.

Given the circumstances you describe, I think your best long-term protection is to view the situation as a bad deal. If you can afford all the financial obligations, it may well make sense to accept the situation. I am willing to believe the contract was written in a very one-sided manner -- and having signed it, you are stuck with the details and consequences. Once the condo is finished and has come under your ownership, remember the old line: "Living well is the best revenge."

Good luck in this situation.

Steve

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