Legal Question in Real Estate Law in Florida
Good Faith Estimates (legal Definition)
9 months ago as our lot was being prepared for clear/fill we were given a good faith estimate of $10,000. The actual bill was $20,000 at completeion. Are we obligated for the full amount or is the builder or land developer for this overage?
P.S. We were told for over 8 months by the builder that the site preparation had been covered by other buget items that came in under budget. Two weeks before closing the builder comes back and says that we still owe him the $10,000(site prep bill) to cover other items that are over budget. HELP!!
1 Answer from Attorneys
Are Estimates Binding?
FACTS: 9 months ago lot being cleared; given good faith estimate of $10,000; Actual bill was $20,000; Told for over 8 months by builder that site preparation covered by other budget items that came in under budget; Two weeks before closing builder said we owed him $10,000(site prep bill) to cover items that are over budget.
Q. Are we obligated for the full amount or is the builder or land developer responsible for this overage?
A. Black's Law Dictionary defines "Estimate" as: A valuing or rating by the mind, without actually measuring, weighing, or the like. A rough or approximate calculation only. It implies a calculation or computation.
Hopefully you had a written agreement with the developer. You need to read the terms of the agreement. If you gave free access to your check book, you made a mistake. If you dispute the amount, then ck. the contract to see what your remedies for Dispute Resolution are. If it is not clear in your agreement, then you will have to pay the Reasonable Value of the work done. Get another opinion/estimate from another builder, if you can.
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