Q: New build with major issues, will we loose deposit and custom upgrade fees paid if we don't close?
We are supposed to close in 9 days. The master bathtub was installed incorrectly. It has been removed, but sits in the middle of the bathroom for more than a week now. The wrong kitchen sink was installed. After insisting, builder stated they will install correct sink weeks ago, but no work has begun. If they can't complete these 2 major items before close, can we delay or cancel and what are the real penalties? They required us to pay $20,000 upfront for the upgrades, plus the $5,000 earnest money.
A: Justia's Q&A cannot provide specific legal advice. You will need to contact (and pay for an attorney) to review the documents and provide advice. This charge should be around $100-$300 depending on the attorney. As a general rule, failure to timely correct documented construction defect/errors can potentially be grounds terminate a transaction. Based on the situation a failure to timely correct can delay closing. Again, without reviewing all the materials a complete assessment cannot be made.
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