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Home construction delay has buyers wanting out

Benny Kass
zKirk Homes (William DeShazer/ Chicago Tribune photo / January 20, 2012)

zKirk Homes (William DeShazer/ Chicago Tribune photo / January 20, 2012)

Q: My wife and I signed a purchase agreement in June with anticipated delivery of November/December. In September, we were advised that delivery would be delayed until March/April of 2012. When we asked the reason for the delay, we were eventually told that the developer did not have the finances in place yet to begin development of that phase. This is the first we had heard that there even were phases.

We initially stated what lot we wanted, and the sales agent said he had to get permission to release that particular lot. He never stated that, in fact, the lot we had purchased was in Phase 2. Can this be considered nondisclosure? Is there any way out of this contract?

Ten months versus five months is an unreasonable time for the seller to deliver a house, in our opinion. Any guidance you can provide would be greatly appreciated.

A: Yes, it is a long time to wait, and the delay could cause you to have problems getting a good loan.

However, I need more information. Is the home in a community association? If so, does your state have laws requiring the seller to provide you with the right to cancel the contract within so many days after receiving the information about the association (usually called a "public offering statement")? If so, was there any information about phasing?


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