Am I able to terminate a contract with a builder?

UPDATED: Oct 2, 2022

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Am I able to terminate a contract with a builder?

Closed on a construction loan in October 2018. Our new home is currently still in
rough construction phase. We have a lien on the property from one subcontractor.
Also, there are details of the house that are not done per the plans. Communication
with the builder is extremely poor. Takes days sometimes week for the builder to
respond to calls. They originally told us our house would be done in July and now
they are telling us October or November 2019. Also, the builder refuses to provide
us copies of the sworn statements for the construction draws.

Asked on July 28, 2019 under Real Estate Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Based on what you write, such as 1) the contractor evidently not paying the subcontractor (which would be why he was able to impose a lien, we presume), 2) not following the plans, which are effectively part of and incorporated into the contract), 3) not cooperating with you (the lack of contact), and 4) missing the deadline by a significant amount, it appears that this contactor could be considered to breach the contract in a "material," or significant, way. A material breach of contract by one party (e.g. the builder) would let the other party (e.g. you) terminate the contract.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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