Legal Question in Real Estate Law in California

lock extention fees due to builder delays

We paid 1 point for an interest rate lock, based on the estimated completion of our condo by August 2006. The builder has since extended the completion to October 2006. This will require a rate lock extention fee of 6/10 of a point. Since we are using the developer's company for our loan, we feel that the builder should pay the extention fees for our lock. Is this reasonable or legal? Our original purchase agreement will also expire in August 2006, and we have not yet signed the amendment that would extend our agreement through October. If we do not extend our agreement, are we entitled to all our deposits and points paid?


Asked on 8/11/06, 8:55 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: lock extention fees due to builder delays

Both of your questions look primarily like matters of contract interpretation rather than issues for which there is a fixed principle of law.

I would comb through all of the fine print in your contracts, both for the property itself and for the financing. Then, if you think you've found anything that justifies your positions on these matters, vs. the builder's, see a local business or real estate lawyer for further advice.

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Answered on 8/12/06, 1:37 pm


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