Negotiation Skills Company, Inc.
 
Negotiation Skills Company, Inc.

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The New House’s Delivery Date Won’t Be Met

From: Kim, Buda, Texas

Question: I am looking for advice to aid my sister, who was planning to move into her new home in February (the home is being built in a builders' neighborhood development). The break ground date was to have been 11/17, but now is late December.

The builder didn't notify her of this. It took a lot of follow up phone calls on her part, once it was discovered that the lot had not even begun begin cleared. Can you recommend what items might be negotiable here? Like one of your writers, she is renting and was trying to allocate savings for closing costs.

Response: If your sister and her builder have a written contract that includes indications of delivery dates, there should be no problem getting the builder to ameliorate your sister’s problem by reducing the price, subsidizing her rent, or in some other way reducing the burden she now faces. If there is no contract, if your sister has any written records (letters, etc.) from the builder, she can still probably expect to get some sort of compensation.

There may also be documentation in the hands of the organization that is providing your sister the mortgage on the new house. That, too, could be used as an indication of any promises made by the builder — and your sister’s reliance on those promises.

On the other hand, your sister should take this opportunity to examine her alternatives. Unless she is locked into buying this particular house from this builder, perhaps she wants to look someplace else.

Frankly, if the builder has treated your sister with such disinterest, it may be that the quality of construction, the validity of any warranties, and the likelihood the builder will provide infrastructure (roads, sidewalks, etc.) of durable quality in the development should all be viewed with a careful eye. While your sister may like what she’s been promised, the builder’s record is not good on keeping promises — so she ought to see if there is a way to get out of the deal. If she is locked in, there must be a contract. The contract may be one-sided, completely favorable to the builder. Nonetheless, it may make sense to check with municipal or state consumer protection agencies — or with a lawyer — to get a sense of her legal rights.

No matter what, your sister should make sure that all future communications with the builder are in writing — and she should not accept verbal promises.

Good luck,
Steve

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