I signed a P&S with a builder/realtor on January 17. The original "Transfer of Title" closing date in the contract was May 1, 2017. I gave the builder a $12,000.00 deposit. In addition I have paid $601.00 as a fee to the mortgage company and a $522.12 deposit to an independent security company to install a security system in the house. When the builder went beyond the May 1 closing date we both signed an addendum for a new closing date of May 30, 2017. As of midnight tonight the builder will have gone beyond the new date. The builder is providing no information with regard to eventual house completion and closing. I now have suspicions regarding the competency of this builder and I have other housing options I can pursue.
It is not an easy question to answer without some additional facts. I think you should call an attorney to discuss the case further, most allow a free consult and then you make the decision whether or not to pursue. It may be less costly to get the contractor to do the work than to take a chance on walking away or trying to get your money back. Search Angie's List and the Better Business Bureau to see what others may have stated about the contractor, You can file a claim with the BBB and they will try and work out any issues between you and the contractor. Good Luck!
In an ideal world, you would have been represented by an attorney in negotiating a contract for one of the largest purchases most people make during their lifetime. The contract (P&S) should have protections in it for you, including some definitive consequences for failure of the builder to perform. However, with new construction, there are more twists and turns than with existing houses, so it isn't unusual to go beyond the original closing date. That said, with a contract involving the sale of land (assuming it is a "land and building" sale, rather than construction of the residence on land which you own), typically changes are required to be recorded in writing, and failure to perform, without excuse, of one party may entitle the other party to cancel the contract. You really need to speak with a real estate attorney to determine your options. Good luck!
(P.S. The advice of the other attorney concerning checking the builder's reputation is well-founded. You might look into that before coming to any decision. ... but next time, you may wish to have an attorney assist you in the whole process, including review of the initial agreement, and any modifications after inspections, through closing on the actual purchase. It is like an insurance policy - it won't guarantee the total absence of problems, but could help reduce the consequences.)
