North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
Interesting scenario. My fiance' and I bought a SFR in our home town which is new construction. We went there, picked out the lot, the exact layout of the house (these were predetermined, about 10 selections) signed off, went through P&S, earnest deposit, all the hoops and whistles. They started building excavating and we noticed that it took a while, so we had my fiances father (real estate agent) contact the seller and after some shady digging, they told us that they had to change the layout of the garage from a facing entry to a side entry....
question, can the seller do this? they never spoke to me, telling me about their plans to alter the garage or layout. I'm bothered by this because the house is oversized for the lot and there is not much lawn AT ALL. By it being a side entry driveway, more concrete, less grass, and I almost want to say tougher for me to resell the house if I wanted because the lack of a yard.
This bothers me and they are planning to pour foundation this week...
Any suggestions, what do you think about this situation? What type of leverage do I have.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
12y
@Kyle Cabral First thing you should do is IMMEDIATELY talk to the builder, take your agent with you. Tell them that is not the plan you agreed to purchase, and you want to buy the model you are in contract for. That is a major change, and they should have discussed it with you. If they won't let you get the model you want on a different lot, tell them you'd like to cancel the escrow and get a full refund. If they won't agree, go talk to an attorney or learn to live with the house. (If you decide to live with it, ask for a discount for the smaller yard) We are brokers and builders. I wouldn't consider ever doing something like that without talking to the buyer. There may be a legitimate reason they can't do front entry on garage, but, you should have been given the option to stay with that lot or switch to a different one.
North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
12y
@Wayne Brooks just re-read the contract in great detail and there is nothing specific that would surround a scenario like this. Probably will have to dispute if I have to. @Chris G. will do. I'm having my RA take the reigns initially but will continue to research and make my concerns known to the seller.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
I would assume they couldn't make a change this large without your okay. I'd tell them I'm cancelling the contract, will withhold funding, etc., since they are breaking the contract.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
12y
@Kyle Cabral First thing you should do is IMMEDIATELY talk to the builder, take your agent with you. Tell them that is not the plan you agreed to purchase, and you want to buy the model you are in contract for. That is a major change, and they should have discussed it with you. If they won't let you get the model you want on a different lot, tell them you'd like to cancel the escrow and get a full refund. If they won't agree, go talk to an attorney or learn to live with the house. (If you decide to live with it, ask for a discount for the smaller yard) We are brokers and builders. I wouldn't consider ever doing something like that without talking to the buyer. There may be a legitimate reason they can't do front entry on garage, but, you should have been given the option to stay with that lot or switch to a different one.
North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
12y
@Karen Margrave thanks so much for your insight. Exactly what I was looking for. I will definitely press this issue more and speak to my Realtor about this and make the suggested requests.
Rental Property Investor · Chandler, AZ · Member since 2012 · 87 posts · 39 votes
12y
I have worked for two national home builders (currently do with one). In this scenario for both companies, your sales agent would have contacted you first - or at least should have - to let you know the home you chose couldn't be built as agreed. Both companies would allow you to cancel and receive a full refund of your earnest money for a major change like this.
I would call them and explain your concern and see what solution they offer you. If not to your liking, cancel the contract. (And of course read it first so you know what you're dealing with).
North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
12y
@Karen Margrave@Deborah Smith I visited the site, had my realtor request that the housing placement on lot is adjusted, they said it couldn't be done based on elevation, so he requested an alternate method. We will hear back from the builder whom is the VP of the company. I am thinking of writing a letter and submitting a letter with my dissatisfaction and the poor communication that him and his team displayed. Without us digging or doing research, the house would've been up and we would've known nothing until it was changed. A major change in garage would warrant some sort of "sorry".
I plan on leveraging this dissatisfaction, coupled with the fact that there is a significant loss of grass area to attempt to either overall housing cost, refund of a portion of whats in escrow or to upgrade the second floor to match the first with respect hardwood flooring. (currently first floor is all hardwood, 2nd is all carpeted)
I think the request is fair and will write a professional letter. Hopefully something happens and I get something out of it.
Engineer · Rifle, CO · Member since 2013 · 57 posts · 32 votes
12y
You approved the plans in writing, thus they are part of the Contract Documents. The builder is contractually obligated to build the home the way it is shown in the plans. If it cannot be built as shown (be it code compliance or constructability issues), the contractor needs to get approval to change the layout. If the contractor makes major changes like you described without approval, he is financially responsible for any costs associated with redoing the work (have an attorney review your contract to verify you didn't waive this right). You can sue him over it.
I work in residential, commercial, retail, and other building industries. Changes in plans are typical in most construction projects. All changes need to be approved by the owner or the owner's representative. Most are done in writing, but some are comfortable with verbal approval, particularly in SFR construction.
North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
12y
@Brian Rossiter thanks for the insight! Learn something new everyday. Just as an FYI @Karen Margravehere is the letter I sent. Posting it for more BP users who ever run into a similar scenario or end up fighting for what's right and not letting things fall by their side.
The letter did ruffle some feathers as within a couple hours of receipt, they scheduled a meeting with me for 8:00PM tomorrow. I'll let everyone know the outcome.
I threw in the tangible requests at the end because even if I do stay with layout, I think I should be compensated in one way or another.