Legal Question in Real Estate Law in Utah

Re: New construction closing

Your options may be limited by the documents you have already signed. Generally you can compel the builder to perform the terms of the contract or perform in a reasonable manner. The documents need to be reviewed to be certain of your options. I suggest that you sent a registered letter to the builder telling him you are ready willing and able to close, making sure your lender has fully approved your loan and funded it.

You should work with an attorney who has real estate experience. You may call for a free consultation.

Re: New construction closing

The terms of your agreement are contained in the written contract. Presumeably the contract has a clause that says "time is of the essence." That means that it would be a breach of the contract to go beyond the agreed dates unless otherwise agreed to. If that clause is not in the contract then "reasonable" extensions may in fact be alright under the contract. (Did you use a standard "Real Estate Purchase Contract" or some other document?)

You are right to be concerned about having the "fixing" done. Has the Certificate of Occupancy been issued? If not, you may have some leverage in a holdback.

What is the value [cost] of the work that you are concerned with? $5,000? $2,000? $10,000? Perhaps the amount you want held back could be adjusted to an amount that would cover the work that would need to be done if your contractor fails to fully finish the home. Perhaps your lender could step in (not likely) and persuade your contractor that it will not fund the loan until you are satisfied.

Another option is to have an attorney, such as myself of another real estate attorney get involved. That may or may not intimidate the contractor to properly complete the home.

You, of course, have the option of suing after closing for the remaining work to be done, but that is NOT a profitable venture (although you may be able to claim a loss of the "benefit of the bargain" to the tune of the $25,000 if it were to sell to another party for the appraised value $25,000 higher than your contract.

A threat of a lawsuit based on that loss may be leverage to be used judiciously.

I do not recommend closing without the home being complete. As I think you must know, you are much better off to get the project finished before closing.

Read your contract carefully and have an attorney review it to see if there are other factors weighing in your favor.

Thanks for your inquiry.