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Updated over 1 year ago,
New Build has not started
Hi BiggerPockets community,
This is my first post but unfortunately, not a post with good news. I found a builder/developer that was advertising new build duplexes in an established community. The city where the new construction was to be built was about a 5 hour drive from my home in Texas (I live in central Texas and the build is in north Texas). I visited the community and liked the location and quality of the duplexes that had already been built. I signed a contract for a new build duplex to be built using a series of cash draws. The materials were to be purchased in bulk for cost savings. After the first draw had been sent, I waited several months for follow up communication. I subsequently reached out to the builder and the realtor (where I actually first saw the offer for the duplex) but did not get a response. The subsequent responses from the realtor were about technical issues that the builder was having which was delaying contact with him as well as me. I subsequently went with to the build site to discover absolutely nothing had been done at the proposed sites. I called to realtor and left a message stating that I was at the site and that she needed to find a way to contact the builder immediately or I was going to be filing a complaint. A few minutes later, the builder contacted me directly and we met at the site. I expressed my extreme dissatisfaction with the way things were going and he apologized profusely. He reported that the city had implemented new policies that would cause increases in cost and that he had made the decision to move the build site to another location that he owned outright. We drove to the location and it was in an even better location than the first one. We talked about 2 hours while viewing the site. I was then assured that communications would improve if I chose to stay in the deal. Communications did improve. I selected my site (and potential second site) and another draw was sent. I initially received updates but that quickly stopped. I then received an email with attachments about a tornado that had recently come through the area. I then spoke directly to the builder who stated that the units had been started (I have no pictures or other proof of this) and that they were damaged by the tornado. I did search the online news papers and local news channels and found that indeed a tornado had been in the area that the builder stated. I still don't have before or after pictures to prove that. The plan was now to move back to the original site as he (and other local builders) had been in negotiations with the city and had come to a favorable agreement which made building at the original site an even better choice now due to agreed upon tax abatements from the city. To move this along, several more months have gone by a I received an email yesterday stating that there are additional issues with the city and he will not be able to build there. There was a proposal to move to another location which I am going to reject. The email provided a breakdown of costs to essentially material and labor. All of the money that I have sent has been toward materials, which has been about 100K. The suggestion is that he 're-sale' the materials and send me back the proceeds from the sale. It was noted that he has been a builder for 30 years and has never had to do this. From the time the original contract was signed until now has been approximately 17 months. The terms of the agreement (and addendums) have been breached. I have no duplex nor land and have provided a substantial amount of money to fund the build. I believe I should get all of money back but wanted to a collective input on what you think I should do and what amount of money refunded is reasonable.
Thanks, Wesley