Legal Question in Real Estate Law in Georgia

Developer and deceptive tactics

Our custom-home community (mid250's and up) is about 1/4 built-out. Due to differences between the current builders and the developer, the developer is in the process of bringing in a tract home builder who is advertising homes from the 190's- mid 200's. This builder intends to build on the remaining 100 lots and this represents an equity loss of about 30k-40K for each existing homeowner. The developer and his marketing staff made verbal promises, gave written literature concerning standard includes for homes to be built in the community to buyers and even the city as well. What can we do? Isn't this deception? The homeowners just returned from a meeting with the new builder and their homes are not the same quality. Help.


Asked on 12/13/01, 2:45 pm

2 Answers from Attorneys

Rex Myers Myers Law Office

Re: Developer and deceptive tactics

It is recommended you contract with an attorney in your area whose practice is or strongly includes "Construction Law". The attorney will need to review all the written covenants as they apply to each of the applicable parties before determining potential violation of those covenants. Signed Charles Myers, Paralegal

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Answered on 12/13/01, 2:58 pm
Hugh Wood Wood & Meredith

Re: Developer and deceptive tactics

Well, you are somewhat short on facts to determine whether you have a valid claim against the builder and/or developer. It sounds like you wish to plead a case of fraud or fraudulent inducement against the developer. To prove and recover for fraud you have to prove all 5 elements: "Fraud" has five essential elements: (1) a false representation or omission of material fact, (2) scienter, (3) an intent to induce the party alleging fraud to act or refrain from acting, (4) justifiable reliance, and (5) damages. Here, your hardest element may be No. 1 (what was the false promise?) (Developer: I will only build custom 250K+ homes in this community.) Well, that might work, but its not in writing -- except for the sales literature and (you prob. have not looked there yet), his zoning, PUD or subdivision application. Look to see what promises he made to the city/county. You can win these cases, but they are not as easy as they seem. In fact, the pressure is applied by going to Superior Court and getting an Injuction against further building of homes that is not in compliance with his original promises, etc. So, if the case is structured properly, you can develop the pressure on the dev. up front instead of at the end of the case. We can do this type of work, but we are way, way short on the facts of your situation. If you want to discuss this matter further, email me further details. Sincerely, Hugh Wood [email protected]

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Answered on 12/13/01, 4:14 pm


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