Expert: Dottie Worthington - 9/20/2007

Question
I have an executed contract with a builder to purchase a new townhome.  We were supposed to close on 9/14, but when we went in for the initial walk-through, the house was no where near finished.  we also noted tons of repairs that would have to be fixed. we told the builder to contact us when the house is complete so we can send our inspector in, and tried to send an amendment to the contract to change closing to October 1. the seller is adamant about closing in the month of September, and is basically giving us an ultimatum to sign an agreement before all the repairs are done or else they won't sell us the house and we won't get our earnest money back

1. is this a breach of contract by the seller? we need them to finish the house so we can send our inspector and do a walkthrough, without that, we cannot take any further action
2. why would the builder be so intent on closing before october? just so record the sale on their 3rd quarter financials, or are there other implications?
3. would we not receive our earnest money back even though we had an option fee?

Answer
Did a REALTOR write your contact for you? If so they used a form that covers all those angles. You would not have to close until all repairs are done. But without seeing your contract, I would consult an attorney to read it for you and make the builder perform on time or get out of the purchase. Also the state of Texas has a governing agency for builders now and you can report him to that agency.