Consumer Law, Warranties Breach Of Contract - Real Estate

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dpodlogar

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All,

I am in a very frustrating position. Being fairly new to buying homes, I am finding very quicky the mistakes I have made in trusting people. In the last year I have been battling with a "builder" of a home that I was told I was doing a lease to purchase contract by both the builder and the bank. In the contract is states information that contradicts other entries. The biggest one is the fact that in one sentence it states the house is being sold as is, but right after that it mentions the standard 1 year builder's warreenty. Now it does not define what is covered by the warrenty, and there lies my issue.

I have since found that the contract is basically a real estate contract and no so much a lease to purchase contract. In the past year I have made many attempts to contact the builder to get items fixed that I beleive fall into the builder's warrenty, such as cracking floors uncovered septic tank, and doors that leak when it rains.

As true to nature, the builder has ignored our every request by phone, and mail. We then contacted the Contracter's board who did an investigation on the builder and found that he alegedly broke several laws to include illegally selling homes as a builder and acting as a contractor when he only has a license to sell homes period. We then took him to small claims court to both recind the contract for not making the appropriate fixes before the end of the 1 year warrenty as well as asking for our $5000 dollar deposit back. We even had wistnesses prepared to speak o for us concerning certain verbal agreements that the builder made to us in front of them during the initial purchase of the house. As you might expect the builder did not respond to the claim at all and we were awarded on the claim.

When we got the paperwork from the small claims court it did not mention anything on the rescision of the contract. My worry now is that because it does not I am not able to leave this house without being sued by the builder.

Ok, so my question here is:

Based on the small claim court ruling which was to both recind the contract and ask for our $5000 dollar payment back, and the fact the the complain filed was in relation to not forfilling the 1 year builder's warrenty, do we have ground to recind the contract and walk away from this house or do we need to yet again take this builder to a civil court or something to get out of this.

We are hoping to find some information on this as we are limited on money as it is and really want to get out of this nightmare...
 
A small claims court likely does not have the power to rescind the contract. It is only able to hear claims for money damages. Here's a thought - the builder has to sue you for breach of contract. You may wan to write a letter, sent certified mail, to the builder and stating that the builder has breached the contract, etc.

But let me guess... you want to be able to rescind the agreement which may include a bank loan - am I correct? If the bank is a part of the agreement you have a problem. You may want to send notice to the bank about the fraud and breach of contract. I would highly advise you speak to an attorney before you do this since you will need to deal with potential issues of default and consequences. There are many instances I have heard in this economy where the bank will not force the issue, especially when you already have a judgment against the builder and if you've procured significant evidence of fraud.
 
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