Can I get my earnest money back if the builder does not meet the deadline.?
In December 2007 I put earnest money down on a new condo. Ground broke and construction began in Feb. 08. In the contract it states that the builder owes me a written letter of receipt of the certificate of occupancy and the date is coming up in a couple of weeks. 1st if the cabinents, flooring and paint are not finished in 40 - 50% of the building is it likely that a certificate of occupancy will be given? If not and the builder does not meet the deadline for the written letter am I entitled to get my earnest money back?
The key is what is written in your purchase and sales agreement, some builders add in clauses that you will gove them more time at no additrional cost while others offer to compensate you for the delays. You would have to ask your buyer brioker for assistance or a real estate attorney if you are looking to get out of it. your better option would be to ask the builder for a discount or to add extra/upgrades at no additional costs. get it in writing and make sure any extension you sign as an end date and says what will happen if the builder is not finished or hasnt obtained the co. good luck
W.K.,
Is this building in the County or in the City limits?
Lisa Salisbury, Associate Broker
WK
Take a close look at the Real Estate Purchase Contract you signed. Chances are that it was written by an attorney for the developer and it will lean toward the developer.
To get a certificate of occupancy, only minor details can be left unfinished and inspectors must feel that the property is ready for immediate occupancy. Be aware that things can happen very fast at the end of a project and when deadlines approach that affect the ability to close on contracts, work gets done.
If you are looking to get out of the contract because the developer has not held up their end or for any other reason, it would be best to consult with a real estate attorney.
I agree with Bill & Anthony - your best bet is to review your contract with a real estate attorney who can explain the ins and outs for you.
I think that's the best advice anyone can give you based on what you've told us so far.
Best of luck!
-Josh
my first suggestion is have an attorney review the contract. depending on the municipality, i do not believe that a c/o will be issued at 40% complete.
as far as deposit goes, unless there is a time is of the esscense clause, the builder probably can reasonably extend the completeion.
WK
Your best bet is to check your contract and consult a real estate attorney on this matter.
Good luck
I would say he is in breech of contract. Read the section pertaining to the closing date and what your options are
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