Am I responsible for any cost if I decide not to go with a builder? (documents, new agent)
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I thought about building a home a couple of weeks ago. I met with a builder and he showed me some preliminary plans and we had verbally agreed to pursue the project further when he gets back, which was today. During his absence, my financial advisor advised for me to sell my current home prior to building since there's not much value in building in these tumultuous times. I emailed the builder that I want to cancel my project for now. He will be extremely angry and will likely ask me to pay for some incurred cost, such as some modification to an existing plan that he'd shown me. I have not signed any thing with him, so I want to know if I have any responsibility for any incurred costs? I've talked to some people who felt that all the incurred costs are the cost of doing business and that I should not pay a penny. What do you think?
You are not legally bound to the builder. In other words, you did not sign anything tying you to his services. I doubt that it would ever hold up in court if he chose to sue you since you never entered into a legal contract with him. The first thing the Judge would do is ask the builder to produce a signed contract for the services between the two of you. Since there is none, then its a mute point.
I thought about building a home a couple of weeks ago. I met with a builder and he showed me some preliminary plans and we had verbally agreed to pursue the project further when he gets back, which was today. During his absence, my financial advisor advised for me to sell my current home prior to building since there's not much value in building in these tumultuous times. I emailed the builder that I want to cancel my project for now. He will be extremely angry and will likely ask me to pay for some incurred cost, such as some modification to an existing plan that he'd shown me. I have not signed any thing with him, so I want to know if I have any responsibility for any incurred costs? I've talked to some people who felt that all the incurred costs are the cost of doing business and that I should not pay a penny. What do you think?
IMO I don't believe the builder would have a leg to stand on, as you never signed anything. I was worried about something like that along similar lines, as we started talking to a builders agent without having a buyers agent on new construction. We looked at several models with the agent and went as far as to pick out a lot and plans were printed out and mapped. We even gave a deposit to hold the lot. After having second thoughts we got our full deposit back and pondered other options.
After a month or so we retained a buyers agent and started looking at the same builder using another builders agent. Our new agent and new builders agent assured us that there would be no conflict of interest and that the original guy we started with would probably get a stipend for his time and trouble and that is the way they handle things. We just didn't feel we meshed with the original guy either and that seemed very accepted.
You didn't mention IF he WAS unhappy, or you just THINK he's going to be unhappy after your e-mail.
If he modified plans because of your conversation with you, he probably incurred some expense. However, if he modified plans without a signed contract, he is not a very good businessman.
Not knowing the conversations between the two of you, it is impossible to know if there was an "implied" contract between the two of you. My guess, he might be a little miffed at the loss of a job, but is probably used to it and will just move on.
Just from your post, it sounds like the most he might be out is a change in the plans. There might be some architectural time involved and costs related.
Again, without a written contract he is on shaky ground. If you did have an implied contract, then it would be an honorable thing for you to re-imburse him for the costs involved in changing the plans.
I guess it depends on his reaction and what costs if any he incurred, and if you ever want him to build a house for you in the future.
Yeah, agree with the rest of the posts, no signed documents, no liabilities.... however builders are also wising up to the game as well, they are free to discuss plans and this and that... but if you want anything more than that, they are going to pull out a contract... its not like what it used to be... if you are going to make you "think" too hard, they are going to ask you to sign a contract... sign of the times... I don't blame them, its been a long and terrible time for them...
The builder didn't ask for money, but just based on the fact you made this post you believe that he incurred costs based on your word that you'd go forward with the project. So you tell me how much is your word worth?
The builder is real nice. He was a bit disappointed, understandably so. But I'm likely to come back to him at a later time. I just wanted to be fair to him as much as I want him to be fair to me. Thx for all the advice.
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