Court proceeding won't require repairs

Dear Bruce: Last year, we had a home custom-built for our retirement. The builder has ignored our requests to correct some serious problems. When he was doing the work, we told him about certain problems. He said not to worry; he knew what he was doing. Now one of the problems – the commode was not set right – has returned. Can we take the builder to court to make this right? – S.P., Florida

Dear S.P.: You can take someone to court for almost any reason; whether you prevail is another question. First, get an opinion from a qualified plumber stating the commode was improperly set. In the absence of this, I think, even if you go to court, the chances are it will find in the builder’s favor. You also should determine the cost to have them reset the floor tiles, etc. When one goes to court, one goes for a dollar amount, rather than requiring the builder to do specific work. If the costs involved are modest, it might be to your advantage just to pay to have it done and put the matter behind you. If it’s a significant amount of money, then a small-claim action certainly is warranted. You should also know that even though you may receive a judgment, collecting is another matter.

Refunded deposit not illegal

Dear Bruce: In March 2005, I put down a 10 percent deposit and signed a contract with a builder in Florida to construct a home for a sales price of $199,000 in a development his company owns. This development had paved streets, level lots, etc., and looked ready to build on. On Nov. 11, 2005, to my surprise, they sent my deposit money back, exercising a clause in the contract that stated, “If building permits could not be obtained in 180 days, they could refund the deposit.”

I have no problem with this clause, if indeed they were unable to obtain the permits and had not dragged their feet. In their letter to me, they also offered a credit if we would sign a new contract at an increased price of $235,000. There have been articles in the local paper quoting city planners, who said, “The builder could have obtained a building permit as early as July if the company had reviewed a property title.” I have talked with the city planners, and they have said this is true, but good luck proving it, because the builder could claim title issues (builder owes the title company). Legal counsel I have spoken to has stated this is going to cost me $15,000 to $50,000 to fight, and would take years and I could still lose. I have offered to pay an additional $10,000 for the home if they would just build my house. I received no response from their counsel. Then I found out they had offered and paid 2 percent liquidated damage to others. In addition, I have written documentation where they offered to build one of the homes at the original price, but the homeowner refused.

I feel I am being discriminated against. I really do want to purchase this home and feel that I have tried on more than one occasion. Can you help? I cannot afford to play the lawyer game, and if I lose, I pay the builder’s expenses. – B.Q., California

Dear B.Q.: Often, builders will do what you describe. They’ve got your deposit. They’re looking at the market, and if the market is going up, they’ve had the use of your money and they can raise the price. Ethical? No. Whether or not they will pay you this 2 percent liquidated damage, which is just $4,000, I don’t know, but as your lawyer has properly pointed out, it’s going to cost you a good deal to sue and you very possibly will lose. I don’t know where the information came from, but if you can document the 2 percent, I suspect they will probably pay it to you or, of course, you could pay the additional $35,000. That’s the name of this game. You could argue about the morality of this, but it is not an uncommon practice. I suppose the builder could argue his costs went up, and you would not be agreeable to paying a larger price based upon that. Morality here is clear; the legality is a little foggy.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.[[In-content Ad]]