Am I right to pursue an action for costs associated with building a house that fell through on the builder’s side due to his lack of financing?

Get Legal Help Today

 Secured with SHA-256 Encryption

Am I right to pursue an action for costs associated with building a house that fell through on the builder’s side due to his lack of financing?

We had a to-be-built house under contract with a builder before he obtained financing from his bank. When he approached his bank about financing the project (after he already signed a binding contract to build the house), he was denied financing. In the meantime, we had already ordered an appraisal, credit reports, etc. to solidify our mortgage so we had a clean commitment letter. We will be charged these fees shortly but we feel we should not have to pay these and that the builder should reimburse us for them due to the fact that he did not follow through on building the house.

Asked on January 19, 2012 under Real Estate Law, Maine

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you had a contract to purchase a structure with the seller and the escrow failed to close due to problems with the builder being able to get financed to build the structure where you incurred certain expenses in reliance upon the builder's representations, you have a possible legal and factual basis to seek reimbursement from the builder for these expenses.

The fees for the appraisal, credit report and the like should be sent to the builder for reimbursement by a certain date. If not paid by that date, your recourse seemingly would be small claims court.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption