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Builder Fraud

I purchased a model home with a builder.
1. Builder offered me $4k builder's credit to use their own lender. Somehow it was not listed in the contract. The employee who offered left the company. Now the same employee has given us a written confirmation that $4k builder credit was offered at the time of signing the contract and it was missed in the contract. Now the new sales person has declined to honor the previous employee written confirmation. I would like to know where are whom should I eport this issue? What are my changes to get the $4k credit back from the builder?
2. My financing was delayed by their lender for about a month. Builder moved to the property without any infomation. I found out builder moved to the model house and opened it for public, even though we had a ratified contract and builder had a huge deposit of 20% in their pocket. My realtor believes, that builder should pay for the rent for a month. Builder has declined realtor's request to pay the rent from move in date until the settlement date.
Where should I start the process? Whom should I report?
  • November 24 2012 - Chantilly
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Answers (5)

I work in a location with a large number of builders and it is not unusual for them to make a home under contract a model while in escrow. As far as the credit goes if it does not state that anywhere in the contract than unfortunately you may be out of luck. Even the writing by the employee only verifies a verbal agreement that he may or may not have had authority to make. Either way contact a lawyer and see what options you have. Word of mouth is also very important with local markets. Share your experiences with others.
  • November 25 2012
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Most likely the written confirmation from the ex-employee is meaningless.   You could meet with an attorney for further evaluation of the situation, 
  • November 24 2012
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Tim and wetdawgs,

Thanks for your feedback.
Is there any meaning of written confirmation from the ex-employee, who was employee of the builder at the time contract was signed and he was representing the builder at that time. Empolyees come and go, the commitment was made from the builder side.
  • November 24 2012
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I would consider this sloppy contract writing, rather than "fraud".  In addition to the error from the other side, both you and your agent should have read the contract carefully before you signed it.

It is not your house until after closing, so asking for rent for a house that isn't yours doesn't quite make sense.      Do make sure you have a walk through before closing to ensure it is in pristine condition. 

  • November 24 2012
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First of all it does not sound like fraud to me. It sounds like sloppy contracts with things left out and since you have a Realtor, on your side, I would put much of the blame squarely there. They have a written contract for just this reason, if it is not written it is not agreed to. As far as the builder using the house as a model, unless your contract asked them not to, then it is his house and not yours and he can use it as a model until it is yours since it does not violate anything in the contract.

Tim
  • November 24 2012
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