What can a home buyer do if the builder does not complete construction?

Many home buyers book a flat before construction starts because of the lower price offered. What can a home buyer do if the builder does not complete construction on the day promised?

If the builder does not complete construction on the promised day, a home buyer can take the following actions:

1. Review the Contract: Examine the terms and conditions in the sales agreement or contract to understand the builder's obligations and any penalties for delays.

2. Communicate with the Builder: Contact the builder to discuss the delay and seek a resolution. Sometimes, delays may be due to unforeseen circumstances.

3. Legal Recourse: If the delay is substantial and the builder is not cooperating, consult with a real estate attorney to explore legal options, including seeking compensation or contract enforcement.

4. Document Everything: Maintain records of all communication with the builder, including delays, promises, and agreements.

5. Consumer Protection Agencies: Depending on your location, you may report the issue to local consumer protection agencies or regulatory bodies for assistance.

6. Mediation or Arbitration: Some contracts include provisions for mediation or arbitration to resolve disputes without going to court.

It's crucial to consult with legal professionals and thoroughly review your contract to understand your rights and options in case of construction delays.

If a builder doesn't complete construction as promised, a homebuyer can seek legal recourse, file a complaint with the local regulatory authority, and potentially claim compensation as per the terms of the agreement.

You can attempt to negotiate with the builder to reach a mutually acceptable solution, such as extending the completion date with penalties for further delays or obtaining compensation for the inconvenience.

Have Your Earnest Money Deposit on New Construction Ready. When purchasing a home that has been previously owned, the earnest money on new construction is typically 1-2% of the sales price. When purchasing new construction, your earnest money deposit is usually 5% of the sales price.

If the builder does not complete construction on the promised day, the home buyer can typically take legal action, such as filing a complaint with the local real estate regulatory authority or seeking compensation as per the terms of the purchase agreement.