Legal Question in Real Estate Law in Virginia

Can a builder back out of contract for a new house because of his negligence?

We have a contract with a builder to buy a house in Annandale, Va dated April 2005. The proposed settlement date was Dec 2005. The house was to be built on existing land which was to be subdivided into 2 new lots. Now, the house is half built and the builder says he cannot subdivide the land so he says he will not give us the house. He is trying to sell it for $400,000 more. He is using a clause in our contract which says that 180 days after the proposed settlement date, he has the option of backing out of our contract. We have also found out that the county has new rules regarding irregular lot lines but that there was a grandfather clause that would have allowed our house to be built. However, when we asked the builder about the clause, he says he never filed for a subdivision, so this didn't apply. Our builder has had a deposit of $105,000 since Nov. 2004. He has not returned this deposit nor does he return our calls. We want to know what our options are at this point.


Asked on 12/26/06, 9:21 pm

2 Answers from Attorneys
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: Can a builder back out of contract for a new house because of his negligence?

I would encourage you to have an attorney review the contract as soon as possible. You indicate that the builder has now been in breach (failing to close) for about one year. A deliberate failure to settle in order to trigger the 180 day clause to builder's advantage is troublesome.

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Robert J. Strupp

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Answered on 12/26/06, 9:36 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Can a builder back out of contract for a new house because of his negligence?

We are now fast upon the commencement of the Year of Our Our Lord, Anno Domini, 2007.

What in Heaven's name are you still waiting for in order to secure what ever possible redress or recourse that may, perhaps, still may be available to you for this particular unhappy situation?

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Answered on 12/27/06, 12:35 am


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