Q: Builder asking for $25k over contract price before issuing CO
We have the final walkthrough on a new construction home this evening and were told we'd receive the keys. We received an email from the builder stating they must raise the price of the home $25k and receive the money before issuing the CO. When we spoke on the phone, they told us it wasn't in the contract we signed but they would "like to share the cost" so they don't take a loss. This was originally an investment property with the mortgage as a second home and due to other issues with another new build for our primary (tearing down to rebuild), we need to live in this house for 2 years. Are we legally required to pay the $25k out of pocket if our contract doesn't have a clause regarding increase in pricing? Is the builder able to withhold the CO if we do not pay? What legal action would we be able to take?
A: No, the contract doesn't need such a clause to be enforceable. Talk to the building department regarding a certificate of occupancy.
Bruce Alexander Minnick agrees with this answer
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