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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 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.


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