Hello I entered a contract with a builder in September for a new house and paid significant earnest money, but I've faced numerous problems since then. The builder's agent resigned in October, leading to communication issues and unfulfilled promises. Despite three inspections highlighting concerns, these issues were ignored. The construction, which was set to be completed by mid-December, was far from finished during the final inspection, even though the seller had confirmed the construction's completion. The inspection reported major leakage requiring extensive repairs and reported varmint droppings in the attic (even though the inspector had advised the builder in the first report to seal the gaps to avoid such a situation). Also, there have been a lot of issues with the roof. In terms of the finishing, notable flaws include poorly installed electrical outlets, damaged drywall, sloppy caulking, substandard painting, and improperly fitted low-quality windows and tiles. I tried hard to make that deal work, but I am fed up. I want to terminate the contract without losing my earnest money. Can anyone advise on this or recommend a lawyer in the Austin area? My realtor seems inadequately informed about legal matters, and the contract mainly protects the seller, with limited conditions for refunding earnest money. Thank you. #Housing #housing #austin
New constructions in Austin are notorious for having issues. Cracked pavements, air leakages, plumbing issues. One even had the roof fall. They’re just ripping everyone off these days….. The truth is that builders are losing a lot of money due to so many new constructions coming on the market. Most apartments in north Austin are empty. Most new homes in south Austin are empty or have stopped construction…
That is why I am concerned that they might not give me the earnest money back. With such a market, they will try hard to force me to close.
No one can force you to close. Don’t sign anything. Hire an attorney independent of your agent. Also, use a different agent for your next house. They should be able to help you find an experienced and reputable builder, not leave you in the situation you are in.
Op how much is the earnest money on the line. Will be helpful to know if it’s worth this nightmare or not. Lots of RE deals collapse.
$25K
It’s not that much given the repairs list and god knows where else builder has cut corners. You cld be walking in a potential money pit. Also Austin RE is not looking great short term.
It’s more than a little embarrassing that the USA can’t build houses anymore
If things are really as bad as you say, and you aren’t catastrophising, I would terminate the contract. Time overruns, some cost overruns are frequent. The leak would concern me greatly, as I have allergies and worry about mold. Be sure it has been properly addressed. It seems that the contract has been materially breached, as the unit has not been delivered to you, unless there is a clause that allows so many days of delay.
allows 2 years of delay
OP who is the builder and which community is this.
Meritage Homes
Op, sorry about the situation. Which area/ community did you buy? Did you back off / what’s the current status?
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Sorry to hear but yea, that's what new construction is. Anything under 4m is plastic and every corner cut. Get out if you still can and buy a properly built house. Will save you infinite headaches. Your agent will use your contingencies to walk away but likely need a new agent if they didn't already try to talk you out of cheap construction.
4million?!??? Most ppl can’t afford that
So most people shouldn't buy new construction...