Legal Question in Real Estate Law in Maryland
Builder's mistake, any recourse?
I am buying a house in a new development. Recently, I found out the builder had installed the wrong counter tops in the kitchen; apparently the designer had written the correct name of the laminate top, but wrong number on a change order that was signed by me & the builder/or rep. now he's refusing to install the correct one. We're scheduled to close in 2 wks., what recourse if any, do we have? His sales mgr. is saying he never authorized the change (which we have the paper to prove he did) & that since we didn't pay for the change (we are-- we had to put down 10% of the totals of our options, which has been gaining interest for him while our ''options'' don't seem to be options anymore. After a certain time frame, he charged $200 for every change order, but this one was made & signed way before that time.) His attitude seems to be, since he's the builder, he can do as he pleases & to heck w/ his clients. We don't want to back out of the house, but I'm afraid that he's going to do all he can (like put off settlement and screw up our moving plans, etc..to get us to just accept his mistake w/out a fight.) Thanks for any help or advice.
2 Answers from Attorneys
Re: Builder's mistake, any recourse?
Your question asks about the contractual remedy that is available to a purchaser of a home. Where a builder has failed to perform to the satisfaction of the purchaser the initial sales contract may be in question. Various remedies may be set out in the contract for disputes. Depending on the contract you may be able to not settle on the property. Other matters may apply; contact an attorney should you not receive satisfactory performance under your contract. It appears that you should obtain representation for the non-performance.
Re: Builder's mistake, any recourse?
Your options are to refuse to go to settlement until the correct countertops are installed, or to settle with a reservation of rights to pursue a suit against the responsible parties (builder and designer, who presumably work for the same company or are affiliated with one another). This kind of reaction makes you wonder if the builder has "cut corners" elsewhere. Ideally you'd like to settle and escrow sufficient funds to cover the cost of replacing the countertops, but your contract probably has a provision that prohibits escrows of this nature.
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