Legal Question in Construction Law in Texas

Contract

I have bought a land a year ago from the builder, and sign a contract with following phrase:

'' XXXX builder will be the builder of choice for construction of the new residence.

Homeowner agrees to commence construction within two years from date of contract. If homeowner decides not build then XXXX builder will have the first option to buying back the lot at the original sale price.''

We owned the land now, with the title.

Is the contract still valid?

If so, I want to know if I can ask a different builder to build on this lot.. since it is stated - builder of choice, but it didn't phrase sole builder of choice, etc..

Let me know if you can help.

Thanks,


Asked on 9/22/05, 5:24 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Contract

Without further information, it appears to be a valid contract. And it states that XXXX will be the builder of choice. If you select another builder, you will be in material breach of the contract and may be considered a decision not to build.

You'll have an interesting lawsuit when XXXX sues to buy back the land at the original sales price.

Read more
Answered on 9/22/05, 5:43 pm
Charles White Charles G. White

Re: Contract

The term "XXXXX Builder" is confusing. My assumption is that the term "XXXX Builder " was the exact words stated in the contract and that no name was given [therefore suggesting that the clause was not intended to be applicable]. In that circumstance you are not bound to use any particular builder. If the builder was named and he was the one who sold the property, then the builder likely will have the option to buy the property back. However, the contract is ambiguous as to how long the option will last. Before commencing construction, you should have a lawyer to review the contract.

Read more
Answered on 9/22/05, 6:31 pm


Related Questions & Answers

More Construction Law questions and answers in Texas