Legal Question in Real Estate Law in New York

Purchasing a new construction home

In May of this year we signed a contract with a builder to build us a home. He presented us a home he could build us for 250,000. We are presently under construction and have an construction loan. At present we have paid him approx. 175,000 toward it. I was searching online and found our home that is being built, listed for sale though a realtor for 225,000. It is our home that we are building at present. It was listed 28 days ago. We can't figure out 2 things: Why it's listed through a reputable realtor, nor why it's listed for 25,000 less than what he charged us for building it. It's suppose to be complete in 3 weeks, however, he's running behind. We want to go to the builder and ask why he charged us 25,000 more than what he has it listed for. Do we have a legal ''leg to stand on'' regarding the price and that's he listed our home!??


Asked on 8/11/08, 8:03 pm

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Purchasing a new construction home

I don't know why he would waste the broker's time by listing a house already in contract.

In terms of having a $25,000 price reduction, you signed a contract for $250,000. Although behind, the builder is substantially performing under the contract. Therefore, both you and the builder must honor the contract.

Finally, you can ask the builder why he is listing the house for $225,000. Maybe he has a good reason.

Mike.

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Answered on 8/12/08, 8:34 am


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