Is the builder liable to the officially scheduled closing date? (Howe: sales, real estate)

[opus]

Hi, I am facing a problem with closing my home on time. I hope I can get some help here as what kind of rights and options I have.

I am currently having my home built with Newmark. After a long 9 months waiting, they sent me an officially letter through postal mail signed by the area manager in late October stating that my home was scheduled to be closed on Nov 30, 2007. And the letter advised me to make final preparation to move. From the construction progress I could see at that time, I did believe the house could be completed in 4 weeks and be closed in 5 weeks. So I turned in my move-out notice to my apartment with my move-out date set on Dec 16, 2007. However for the last 6 weeks, Newmark barely scheduled workers to work on my house. Needless to say, my closing day has passed and my home is still under construction today. I have tried everything including checking the status frequently, daily communication with the salesman, and contacting the VP in their coporate office, but I still could not make them to schedule more workers to work on my home. Many times I saw no one working there. Although Newmark told me the re-scheduled closing date is Dec 14, I have no confidence that they will complete both the construction and repair work by Dec 14 (There is a long list of repair work submitted by my own home inspector). Because my apartment is scheduled for immediate move-in of the new tenants, if the closing doesn't happen on Dec 14, I will have to be out of my apartment by Dec 16 and move my stuff into a storage place and stay in a hotel.

My question here is: Is Newmark legally liable to the official closing date they set through a signed letter? Can I legally make them pay for my extra moving expense due to the delayed closing date? What other options do I have?

It is no fun to be homeless on Christmas. I appreciate your help.

Willa

[gigi927]

Sorry to hear about your situation. Without reading your specific contract, I can tell you the builders generally have a lot of outs for themselves reserved into their new construction contracts. You're usually at their behest, and it can be an unfortunate and very frustrating situation.

We were in a similar situation in new construction in CA a few years ago. We sent a big old nastygram to the CEO, area regional manager, construction superintendent, sales office rep, etc. all via both mail and fax about how poorly we were treated and that we were basically going to be homeless for a week. We threatened to stand outside the model home in the street handing out flyers to prospective buyers telling them what a crappy company this particular homebuilder was.

They called us into the sales office and agreed to pick up a week's worth of hotel stay for us until our home was ready. I was impressed that they made things right, but it took throwing a huge fit to get it. I would try escalating your situation within Newmark. Don't waste your time with the sales agent, they don't usually have much power. Start calling into corporate and see what you get. Good luck!

[austifornian]

The terms of your sales contract will supersede the information in the letter. Not knowing what you contract specifies (but I can guess that their are favorable terms for the builder should they slip schedule) my guess is that you don't have much leverage. I would suggest that you should talk to a real estate attorney and find out just what your options are. It is amazing how differently a call from an attorney is handled vs. a call from a consumer.

[jenkirk]

You need to read your contract. One of my customers just closed on a Newmark home last week, and if the contract is the same as yours then you may have no legal recourse - but I am a realtor not a lawyer.

I would tell the salesperson your situation, then I would talk to the building superintendent about your concerns. Tell them that you need to be reimbursed and get it in writing from the superintendent. Get reimbursed at or before closing, you will need to have the receipts approved by the superintendent and turned into the title company atleast 4 hours before you close - DO NOT CLOSE on the home until they pay you any additional expenses. If you try to get the money after you own the home, you have no leverage!

Also if you have a realtor, they will do all of the above for you. That is how we earn our keep.

[austin-steve]

Is Newmark legally liable to the official closing date they set through a signed letter? Can I legally make them pay for my extra moving expense due to the delayed closing date? What other options do I have?

Any time one moves, for a brief period of time (or longer if you have a home that isn't selling) you either have two places to live, or nowhere to live. It's the reality of moving. A weekend overlap is ideal, but not always possible.

Newmark won't have any legal requirements to accomodate you on move-in delays, but from a customer service standpoint, they will probably work with you. But don't make a pest of yourself by creating trouble over your fear that they won't keep their word. Just follow up and stay in touch with the construction supervisor (not the sales people) and assume that everything is going to go perfect, and it probably will. If it becomes clear that a delay will occur, let them offer a solution. They probably will because it's good business to do so.

Steve

[smariani]

I worked for a builder (not Newmark) for a number of years in California... from my experience, whether they're liable or not, you can certainly hold them accountable for ensuring you have a place to stay if your home isn't ready by the time you're out of your apartment. Someone there has the authority to authorize paying for your expenses. If you haven't found that person yet, keep going up the food chain until you do and make your expectations very clear. They could reimburse you, pay a hotel directly (some builders already have an agreement with a local hotel for this purpose), or cover some of your closing costs... lots of options, just be persistent.

[Trainwreck20]

And as Steve has alluded to, sugar often goes much further than the vinegar.....

[llkltk]

Wow, that's too bad. We are building a Newmark also. They told us to put our house on the market in January. Yeah, right. We aren't putting it on the market until late February. They are anticipating a March or April close. Who knows what the weather will be like. Let them wait for us, that's what I say!

[gigi927]

Originally Posted by Trainwreck20

And as Steve has alluded to, sugar often goes much further than the vinegar.....

While that may be true, sometimes the only thing that works is vinegar. Try sugar first, but if it doesn't, I wouldn't hesitate to use vinegar.

[Trainwreck20]

Oh, I agree, but having worked many years in the service industry, there is not a quicker way in the world to make a person not care than to come out blazing angry/rude/mean before they even have a chance to look into your issue. The person you are talking to is NOT going to be the one personally responsible for for the cause of your problem, but whether they give 100% (or 110%) of an effor to resolve it often revolves around your interaction. As angry as your may be with Newmark, don't take it out on the first people you talk to .