Legal Question in Real Estate Law in New Jersey
default
We have a contract with a building contractor, there was a default clause in the contract but was struck out during contract negotiation. On the contract, the builder asked for 30% but we told the contractor that we could only afford 15%, he said he would borrow the remaining 15% on our behalf and we would pay the interest on the money, we agreed even though its not in writing.
We have paid the 15%, there are also charges on upgrades pending which we have been paying to the contractor with a balance of about $6000 left.
The builder has been threatening to sue us for default on the remaining 15% and refuse to sell us the house. My question is can he refuse to sell us the house and also sue us for default on the remaining 15% he had promised to borrow for us even though nothing was signed if the default clause was struck out of the contract , all we have is a letter from him calculating the interest charges on the 15%.
1 Answer from Attorneys
Re: default
Your question does not lend itself to an easy answer because I have not reviewed your contract. It appears to me that, by agreement, you have modified the deposit money to 15%. Since you paid that amount, it appears to me that you are not in default. Further, it makes no sense to me that he is "borrowing" the remaining 15%. Borrowing it for what? To put into an escrow account? To build your house? All of these are open issues that need to be answered before a good answer can be given. As previously indicated, this advice is based purely on the little bit of information that you have given to me. There are clearly other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you have not retained an attorney, before you take any further action, you should contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. If you mention LawGuru, there will be no charge for your first consultation. Good luck! Rob Gleaner
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