The developers never finished building my home. Am I entitled to legal damages?

Whenever a person hires someone to complete a project, the key is to begin the relationship by forging a legally binding and detailed contract. If new construction is involved, there should be specific benchmarks outlined that the builder must complete before payments are made. Homeowners should stick to these completion dates and the contract should stipulate that the homeowner be allowed to inspect the work before payment is made. The homeowner may wish to file a developer lawsuit when the builder fails to complete the project.

Before Construction Begins

Before hiring anyone to do work on your existing home or beginning a new home project, you need to make sure the developer is licensed in the state where the work will be performed. The state agency that is responsible for licensing contractors will have information regarding any complaints that have been filed against the builder.

The next thing you should do is to come up with a written contract with the following:

• Information about each party, name, address and phone numbers
• The address of where the work is to be accomplished
• The scope of the entire project which specifies timelines for each major task
• The cost of all materials and labor to be incurred
• Who is responsible for performing inspections
• The date the job is supposed to start and a date for completion
• How any disputes will be resolved, i.e. through mediation or other methods

The contract should also include provisions regarding how the homeowner will handle defects that are discovered at a later date and whether they will allow the builder to remedy the situation.

When to Sue the Developer

Prior to undergoing costly litigation, if the homeowner is not satisfied with the work, they can send the developer a demand letter. This should outline what the problems are and how and when they expect them to be resolved. If the answer they receive is unsatisfactory, they should then proceed with a lawsuit. In order to have a successful suit for breach of contract, the homeowner must be able to prove the following:

• A legally valid and binding contract existed between the developer and homeowner
• The builder breached the contract by failing to complete certain milestones of the project
• By the developer breaching the contract, the homeowner incurred damages for which the builder should be held liable

When to Get Help From a Real Estate Attorney

The prospect of building a new home should be a time when families are excited about the future. They picture themselves moving into their dream home and living happily ever after. When construction woes become a real life nightmare, they should not despair. There are legal remedies that can help you recover damages after the fact. Before beginning any project, consult with an experienced real estate attorney to help you draw up a contract that could avoid some of these unforeseen pitfalls.