Seeking Lawyer After Buying New House

Profile picture for metrosquad

I have closed on a house a month ago and builder is not finished with work that was promised. He also owes me for a hotel bill. What can I do? Should I get a lawyer? Can I require him to pay me whats left to do on the house and hire someone else to finish? He has items like mirrors, dishwasher, stove, ceiling fans, hallway bathroom completion, and yard work left to do. Thanks for any help! - Scott

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May 03 2010 - Central East Austin
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Answers (16)

Definately hire a real estate attorney with knowledge of new construction asap. Did you happen to buy this home directly from the builder??
Best of luck to you..hope you are in your home soon.
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September 07 2010
Profile picture for BetinaForeman
Just wanted to check in and see if you were able to get satisfaction from the builder of your home. I hope it worked out for you.
Sincerely,
Betina
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September 07 2010
Profile picture for lorihuey

Buyers should never close on homes until they are 100 percent complete. I would contact a real estate attorney. I would get a bid for the items that need to be completed. 

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August 10 2010
Profile picture for Mr Caveat
always seeking a lawyer AFTER buying a new house, never seeking a lawyer BEFORE buying the house and making sure that you get what you bargained for. hopefully, you guys will be able to come to terms.
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July 21 2010
Your builder should have created a "punch list" with you before closing on any outstanding items on the home. That could be used as a legally binding document. However, how were you able to get a certificate of occupancy on the home from the city with the home being incomplete. Was there an appraisal done?
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July 21 2010
Profile picture for L Strasberg
Is there a mention and agreement as to what the per diem costs are should the closing not take place as per the contract?  Was there a walk thru done prior to closing and what was signed off and agreed to then between you and the builder?  If so, you should have nothing to worry about and have these issues addressed in court.  The builder will have to pay legal costs when they lose and if you have everything in writing that reflects what is needed to be fixed, repaired, etc and you can show it wasn't done in a satisfactory or up to code manner...you wouldn't lose.
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July 07 2010
Profile picture for riteandready2buy

Im not a professional but I would recommend get a journal and document  and start photographing  all issues and conversations.  If you bought FHA, read your home warranty especially if things are not repaired within the year.  Your timing is very important, so make sure repairs are done in a timely manner and do not allow expiration dates pass you by.  If you are happy with your home then that is great but stay on top of it. Once you signed on the dotted line the house is yours. 

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June 20 2010
Consult a RE attorney. They may advise you to go to small claims court, but since there may be laws that we are not aware of that will hold them more liable than one would think. Was any of this in writing? If not, it will be very hard to prove that the builder was supposed to finish these things.
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May 03 2010
Profile picture for Dallas Ft. Worth PRO
Did the builder have a CO from the city to proceed with the closing?  A mortgage company would require that on new construction too unless you used the builder's lender? Sounds like not, at least not around here, no city would give a CO unless the home was 100% completed per specs.

A month is a long time!!!  Please don't tell us that you did have a realtor that let you close without depositing heafty money in escrow.

Naima
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May 03 2010
Profile picture for Scottsdale_AZHomes
If your contractor is licensed, another option might be to contact The Texas Department of Licensing and Regulation and file a formal complaint. You can find them at this website:

http://www.license.state.tx.us/

Faced with the loss of his license or a fine might encourage him to get to work.
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May 03 2010
Profile picture for Austin Texas Realtor
Unless the dollar amount of the items that need to be finished or installed is significant I would just keep on the builder. If you have a Realtor get him/her involved.  If this is a major builder in the area it may be a good idea to threaten to talk to the media.  Take some pictures and talk to somebody at a TV station and get the word out.  Bad press spreads much faster than good news so I would think if you told him your intentions he would get the work done much quicker.
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May 03 2010
Profile picture for flittle1
Did you have a realtor? Since you say that you had no choice to push the closing back until everything was complete I would have recommended to my buyer that some funds should remain in escrow until all punch items were completed.  These funds would only be released to the builder at the completion of all remaining items.  In this case I would suggest you stay on his case until he finishes everything, but you have no guarantees that he will do so. If you think he will pay you for what's left on the house then go that route....doesn't sound to me like he would do that, either.  If you get no resolution I think the only recourse you have is to go to small claims court.
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May 03 2010
Profile picture for SoCal_Engr
Based on the description of work left to do, plus the fact that the city required the builder to redo work (i.e., not up to code), I wouldn't count on having the builder come back and do anything else. For what it's worth, you may not want the builder to do anything else.

I'd recommend you develop a punch list of the items left to be done, and then get multiple estimates for the work. Then, send a certified letter to the builder identifying the unfinished items and your estimated cost-to-complete. Include in the letter a deadline for response from the builder, and notification of your intent to move forward and sue for costs if needed.

I don't know how big the builder is, but it's possible that a small builder doesn't have the capital/interest to come back and finish on these issues for a house that has already closed (i.e., unless these items were called out as part of the closing, you may be screwed).

At any rate, the process of getting estimates will let you know the scope of costs for what remains to be done.

Note: I had a similar situation with the builder of my home, though not quite as bad as what you describe. I actually got the estimates for completion prior to closing, and the costs were credited against my downpayment. This was much better than trying to go after the builder after the docs are signed and he has his money.
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May 03 2010
Profile picture for metrosquad
@McKylie - Believe me I really didn't want to close but this closing was a long time coming. The house was delayed many times and closing rescheduled many times as well. Originally was closing in Jan and ended up with closing in April. Delay was caused by permits and the city making builder redo work, etc. Also, I needed to be out of the other place I was living and had no choice but to move in. House is really great, location is great but the builder needs to finish. Again, wish I didn't have to close but had to. - Scott
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May 03 2010
Chances are the cost of an attorney will exceed the cost of the unfinished work.  Keep bugging the builder until he gets tired of you.

You might also consider small claims court.
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May 03 2010
Profile picture for mckylie
Sorry about you dilema.  Sounds extremely frustrating.  I just have one question - why did you close on it if it was not done?  Did you have a Realtor?  Did they give you any advice on this?  Just trying to get some more back ground on the situation.
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May 03 2010
 

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