can a builder increase the price of home after a purchase agreement contract is signed?

Get Legal Help Today

 Secured with SHA-256 Encryption

can a builder increase the price of home after a purchase agreement contract is signed?

We signed a purchase agreement to have a new home built on 6/28 2016 for
234,000. The lot was not ready to build on then and we knew it. It is now ready
to build on and it is 12/9/2016. Now the builder says the price has gone up 5200
due to building expenses increases. and says we must pay the price increase. My
question is, does the builder have the right to increase the home price and
expect us pay it? There is nothing in the purchase agreement contract that
states how long this contract is valid for and nothing that says the builder has
the right to pass cost increases on to us.

Asked on December 10, 2016 under Real Estate Law, Nebraska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

A contract is enforceable: if there was a contracted price, the builder must honor it even if prices increases increase his cost or decrease his profit, unless 1) the contract specifically states that certain increases or costs may be passed on to you, in which case the builder can pass them along in strict accordance with the contracts' terms; or 2) the contract did expire and is no longer in effect--though if that's the case, while they could now quote you a higher price (since they are not bound by the contract), you could walk away and not buy (if you are no longer bound by the contract). But if the contract is in effect and has no clause or provision to increase the price, the builder has to honor the price you'd been given--and can sue the builder for breach of contract if the don't comply.


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