Can I sue the developer over promises to build a pool/community center/park that never materialized?

UPDATED: May 5, 2011

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Can I sue the developer over promises to build a pool/community center/park that never materialized?

I live in a 2-year old development. My builder’s consultant told me when I signed the purchase contract 8 months ago that the community center will be finished by now. The developer has not even broken ground and now the consultant tells me the center/park might be finished in 1year. Homeowners have been told similar stories since the beginning of development. We pay HOA fees for these amenities with no promise for completion.

Asked on May 5, 2011 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You *may* have a cause of action. If representations were made to you that there would be a pool and community center, and those representations were made with the intention that you rely on them and that they induce you to buy, and it was reasonable for  you to rely upon them, but those represenations were false, that might give you a cause of acdtion grounded in fraud. The key issue: did the developer or its representative *know* at the time of making the representation that it was false and they would not or could not build the pool and community center? If so, you may have a claim; but if they reasonably believed what they said--they did not lie--but have later encouraged problems or delays that are beyond their control (bad market; loss of financing; difficulty getting permits; etc.), then you probably would not have a cause of action.

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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