Developer Refusing to Complete Condo
We purchased a condo in a renovated brownstone recently. When we purchased the unit, contractors were working around the clock, and we were assured, and contractually promised, that the punch list items and the exterior of the building would be completed. Now, the developer seems to have completely run out of funds. The contractors have…
We purchased a condo in a renovated brownstone recently. When we purchased the unit, contractors were working around the clock, and we were assured, and contractually promised, that the punch list items and the exterior of the building would be completed. Now, the developer seems to have completely run out of funds. The contractors have told us that they cannot continue to work because the developer has stopped paying them. A significant amount of work remains to be done, but no work has happened in weeks. Before we hire a lawyer, I wanted to ask if anyone has experience dealing with this type of situation. The developer still retains an unsold unit in the building, as well as other buildings and stores in the area.
Yes, thanks, totally agree. Just wanted to see if others had similar experiences. Getting an estimate is a great idea.
If your contract is with the seller, your remedy is with the seller, not the contractor. Since there is no escrow or other money anyone needs from you, your leverage is legal, not economic. Start getting estimates for someone to complete the work. That will give you an idea of how much is at stake and whether it will be worth the legal fees to pursue this.
Hi,
Thanks.
We’ve closed, with a contract covering the remainder of the construction and a warranty for defective construction. Looking back, we should have insisted on an escrow, but unfortunately we did not.
It would help to know where you are procedurally. Did you close, with a contract surviving the closing for work to be completed, or are you waiting for completion of the work in order to close?