Expert: Dick Dennis - 3/20/2005

Question
Hello,
We are in a difficult situation and are unsure of our options.  Two years ago we entered into a purchase contract for a condo in a 14 story (not yet built) 58 unit bldg.   Our contract had a packet of somewhat vague finishing specifications. I didn't like some of the specs, for example, the quality of the carpet.  The developer assured us that we would be able to upgrade that and anything else we wanted to as the project developed.

Cut to now, two years later.  The building is up and they are starting interior finishing soon. The developer we worked with has been demoted from broker and seller's representative to architect only by his co-developers.  They now tell us that our finishing options are: 1. We can have what is specified in our contract with no opportunity to upgrade ANYTHING, or 2. we can change to a different set of finishing specs that have standard and upgraded choices.  The additional cost for #2 would be $131,000.  (Our original sales price was $350,000).   

This seems preposterous to us.  We will not/cannot pay an extra $131,000.  We believe we should be able to upgrade the carpet, bathroom tile and cabinetry doors with individual pricing for those items, but they say they will not permit this.  They have offered to let us out of the deal, but we don't want out.  We want our unit for the price we contracted for.

I would very grateful for you opinion about this situation.  

Mary Waitrovich
Madison, Wisconsin

Answer
It is obvious, Mary, that they DO WANT YOU to pull out of your agreement so they can sell that condo for lots more. Since you have nothing in writing, you don't have much to rely on. You must remember this: In real estate, if it isn't in writing, it was never said.

You can go talk to a REAL ESTATE attorney, but my bet is that he will basically say the same thing. He may ask to see your agreement with the developer to see if he can detect a loop hole through which he can help.

Other than that, there's nothing that says you can't resell that condo for $100,000 more than what you contracted for. If they can sell it for that much more, why can't you?

I do wish you well.

Dick Dennis,  dixiedee13@aol.com