Expert: Hans Weber, Licensed Broker Associate - 6/9/2009

Question
Hello,

We recently signed for a new home. We selected the plot,floor plan and selected the options. And we also put 60k down.Since we signed the contract we thought we are going to get the house that we wanted so we stopped looking/submitting offers for other foreclosure homes. Now after a 2 months or so the builder comes back to us and says he can't build the plan that we selected (in our selected plot).
He gave three options
1.pick another plot
2.choose another plan
3.return our deposit
(1 & 2 we are not interested for several reasons).
We decided to get our money back.
But my questions we lost so many deals (since we thought we are going to get this one) and wasted so much of time.
Once we sign up the contract and if buyer drop out builders always fine us. (take our deposit back. it happened to us before)
So my questions is there any way to fine the builder for this. (for wasting our time and making us to loose the deals)  

Answer
Hello Sujatha,

Thank you for your question.

It sounds like the builder accepted your request for plot and floor plan, but may have been turned down by the building department for some reason of not conforming to local zoning requirements based on your choices.  That can take some time and expense by the builder to determine at a municiapl building department and therefore the delay.  So it seems to me that the combination is not permitted in the plot you chose.

Maybe the buiilder can modify your floor plan slightly to fit into the building envelope of the plot?

It is unfortunate for both you and the builder that you can't go forward on that plot.

Only your contract would indicate any applicable penalties.

Good luck building your next home!

Hans