Ramakrishna
New Member
Dear Sir,
We (my wife and I) entered into a contract with an established home builder in San Antonio, TX (Bexar County) to build a specific model on one of their lots in a development in June '06 (~$250K). After 6 months, we have noticed that the builder has built the house with several architectural changes. These changes were never brought to our attention and didn't have our consent. These changes have permanently marred the distinct beauty and character of the house. .
Deviation 1: The Model has 2 (approx 3'') windows on either side of the front door for symmetry and distinct look. The constructed house has only one window (approx 6-7'') on one side of the front door which has eliminated the front entrance symmetry.
Deviation 2: The Model has 3 windows in the family room (back wall) which provide an open look to the house as well as let in plenty of light. The constructed house has only 2 windows next to the fireplace which is giving the family room a less open feel and is greatly reducing the amount of light in the room.
Deviation 3: The Model has the rear entry door to the back yard in the breakfast area. The constructed house has the door where the third family room window should have been located. This change in placement of the door is creating a dark area in the back corner of the breakfast area since there is not enough light in the room.
Deviation 4: Because of Deviation 3, the stoop at the rear entry door to go to the backyard is now a part of the back patio flat work limiting the back patio space. It has also marred the back yard appearance. As a part of the contract, we have a copy of the floor plan drawing that clearly shows the stoop to adjacent to the patio and not part of the patio flatwork. In addition, the builder removed a mature oak tree in the backyard for which he had assigned a lot premium.
The builder's excuse is that he made these changes to meet new wind bracing requirements that went into effect for permits issued after August 1st. At this point, it is important to note that he had plenty of opportunities to inform us of the impact of the code changes as we were in constant touch with the builder making options selections through out July '06 but, I believe, he intentionally chose not to do so. Instead he wanted us to continue making the options selections, sign options agreements and required us put a hefty deposit (~$15K). Had he told us, we would have decided to cancel the contract. As of today, similar house values have gone up by as much as $30K (including this builder). We believe the builder should be responsible for this financial loss we have suffered.
In a meeting with the VP Marketing on 12/21/06, the VP tried to justify that they could do any changes they want, internally or externally to the house including major changes as cited above, without informing us or obtaining our consent because of the following two provisions (highlighted below) in the contract we signed. For that matter, he argued that it allows him to even build a different house than the one we contracted without informing us, because I was telling him that this is different house than the one I contracted them to build. He apologized for being in this situation and claimed that we had given up our rights by signing the contract (we didn't have any choice if we had to build the house. He argued that the builder is not at fault and not sorry for anything else.
PLANS AND SPECIFICATIONS: Plans and specifications are the sole property of Seller and shall not be removed from Seller's office. "Allowance items" in the specifications are an estimate only for budgeting purposes. Purchaser will pay the actual cost for such items whether higher or lower than the "Allowance." Purchaser acknowledges that the plans and specifications for any particular (builder's name) home are independent of the plans and specifications of all other (builder's) Homes. All changes and revisions from the standard floor plans must be made in writing. Such changes must be included in a written change order and, if they result in a dollar for dollar increase in appraised value, they may be included in the purchase price. Change orders may extend the closing date set forth above. Seller has, or will use its best efforts to construct the residence on the above-described property in accordance with the established plans and specifications. Purchaser understands and agrees, however, that Seller reserves the right to change interior and exterior specifications without notice to Purchaser due to shortage or unavailability of materials, except that Seller warrants any changes or substitutions shall be of equivalent, or better quality. Seller further reserves the right to make minor changes, subject to VA, FHA, or Conventional lender approval where, in the opinion of the Seller, such changes constitute an upgrading or improvement in design or technology. Purchaser further understands that they may not visit the job site during working hours unless accompanied by Seller's job supervisor, or direct the work of any subcontractor in any manner.
SELLER'S OPTION TO CANCEL: Notwithstanding the following, if for any reason, a bona fide dispute should arise between Purchaser and Seller, prior to closing and if such bona fide dispute cannot be resolved to their mutual satisfaction, Seller at its sole option may either submit the dispute to the binding arbitration or may terminate this agreement by written notice to Purchaser. If Seller terminates the agreement, Seller shall return to Purchaser all cash deposits paid by the Purchaser to Seller (whether refundable or not).
BOTTOM LINE: The Seller has given us the following two options: 1) He would reduce the purchase price by about ~$2K and want us close soon (even by year end). 2) Refund our deposit without any additional compensation and/or interest for 6 months.
WHAT WE NEED: We need some legal opinions on: 1) Have we given away our Rights to the builder as he says to change anything he wants without telling us? 2) Do we have any legal recourse to go after the builder to get compensation for the lost opportunities due to rise in the prices of the houses in the past 6 months?
We would appreciate any advice on our legal rights and best course of option. Thank you very much.
We (my wife and I) entered into a contract with an established home builder in San Antonio, TX (Bexar County) to build a specific model on one of their lots in a development in June '06 (~$250K). After 6 months, we have noticed that the builder has built the house with several architectural changes. These changes were never brought to our attention and didn't have our consent. These changes have permanently marred the distinct beauty and character of the house. .
Deviation 1: The Model has 2 (approx 3'') windows on either side of the front door for symmetry and distinct look. The constructed house has only one window (approx 6-7'') on one side of the front door which has eliminated the front entrance symmetry.
Deviation 2: The Model has 3 windows in the family room (back wall) which provide an open look to the house as well as let in plenty of light. The constructed house has only 2 windows next to the fireplace which is giving the family room a less open feel and is greatly reducing the amount of light in the room.
Deviation 3: The Model has the rear entry door to the back yard in the breakfast area. The constructed house has the door where the third family room window should have been located. This change in placement of the door is creating a dark area in the back corner of the breakfast area since there is not enough light in the room.
Deviation 4: Because of Deviation 3, the stoop at the rear entry door to go to the backyard is now a part of the back patio flat work limiting the back patio space. It has also marred the back yard appearance. As a part of the contract, we have a copy of the floor plan drawing that clearly shows the stoop to adjacent to the patio and not part of the patio flatwork. In addition, the builder removed a mature oak tree in the backyard for which he had assigned a lot premium.
The builder's excuse is that he made these changes to meet new wind bracing requirements that went into effect for permits issued after August 1st. At this point, it is important to note that he had plenty of opportunities to inform us of the impact of the code changes as we were in constant touch with the builder making options selections through out July '06 but, I believe, he intentionally chose not to do so. Instead he wanted us to continue making the options selections, sign options agreements and required us put a hefty deposit (~$15K). Had he told us, we would have decided to cancel the contract. As of today, similar house values have gone up by as much as $30K (including this builder). We believe the builder should be responsible for this financial loss we have suffered.
In a meeting with the VP Marketing on 12/21/06, the VP tried to justify that they could do any changes they want, internally or externally to the house including major changes as cited above, without informing us or obtaining our consent because of the following two provisions (highlighted below) in the contract we signed. For that matter, he argued that it allows him to even build a different house than the one we contracted without informing us, because I was telling him that this is different house than the one I contracted them to build. He apologized for being in this situation and claimed that we had given up our rights by signing the contract (we didn't have any choice if we had to build the house. He argued that the builder is not at fault and not sorry for anything else.
PLANS AND SPECIFICATIONS: Plans and specifications are the sole property of Seller and shall not be removed from Seller's office. "Allowance items" in the specifications are an estimate only for budgeting purposes. Purchaser will pay the actual cost for such items whether higher or lower than the "Allowance." Purchaser acknowledges that the plans and specifications for any particular (builder's name) home are independent of the plans and specifications of all other (builder's) Homes. All changes and revisions from the standard floor plans must be made in writing. Such changes must be included in a written change order and, if they result in a dollar for dollar increase in appraised value, they may be included in the purchase price. Change orders may extend the closing date set forth above. Seller has, or will use its best efforts to construct the residence on the above-described property in accordance with the established plans and specifications. Purchaser understands and agrees, however, that Seller reserves the right to change interior and exterior specifications without notice to Purchaser due to shortage or unavailability of materials, except that Seller warrants any changes or substitutions shall be of equivalent, or better quality. Seller further reserves the right to make minor changes, subject to VA, FHA, or Conventional lender approval where, in the opinion of the Seller, such changes constitute an upgrading or improvement in design or technology. Purchaser further understands that they may not visit the job site during working hours unless accompanied by Seller's job supervisor, or direct the work of any subcontractor in any manner.
SELLER'S OPTION TO CANCEL: Notwithstanding the following, if for any reason, a bona fide dispute should arise between Purchaser and Seller, prior to closing and if such bona fide dispute cannot be resolved to their mutual satisfaction, Seller at its sole option may either submit the dispute to the binding arbitration or may terminate this agreement by written notice to Purchaser. If Seller terminates the agreement, Seller shall return to Purchaser all cash deposits paid by the Purchaser to Seller (whether refundable or not).
BOTTOM LINE: The Seller has given us the following two options: 1) He would reduce the purchase price by about ~$2K and want us close soon (even by year end). 2) Refund our deposit without any additional compensation and/or interest for 6 months.
WHAT WE NEED: We need some legal opinions on: 1) Have we given away our Rights to the builder as he says to change anything he wants without telling us? 2) Do we have any legal recourse to go after the builder to get compensation for the lost opportunities due to rise in the prices of the houses in the past 6 months?
We would appreciate any advice on our legal rights and best course of option. Thank you very much.
