HOME CONSTRUCTION ARTICLES
Can the Home Builder Keep my Earnest Money?
Question: We entered into a contract to purchase a new home in a subdivision in the San Tan area for $300,000. We deposited $30,000 earnest money in escrow. After 45 days while the home was still in the framing stage, my wife decided that she wanted to quit her job and return to school. With only one income we will not be able to afford this new home now, and we want the return of our $30,000 earnest money. Due to strong demand in our subdivision, the homebuilder has just raised the base price for our model home, and the…
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Negligence of Real Estate Agent Requires Testimony of Another Agent
Question: After we purchased our Glendale home we hired a landscape architect to design the landscaping for our back yard. Although my husband and our two sons purchased the materials and did the work, they followed the design drawings of our landscape architect. The problem is that during heavy rains our master bedroom is flooded because of improper drainage in our back yard. When we contacted an attorney to file a lawsuit against our landscape architect, the attorney said that he would need at least $1,000.00 to hire another landscape architect to be able to testify as an expert witness…
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My New Home is a Lemon
Question: We bought a new home two years ago in West Phoenix in the flight path of Sky Harbor Airport. We have had significant electrical and plumbing problems since the first day that we purchased our new home. Our homebuilder now refuses to do anything, and said that our one-year home builder’s warranty has expired. The inspector from the Registrar of Contractor’s office was very nice, but the mechanical and electrical problems still remain. We have given up on all of the meetings and paperwork! My husband is a painting contractor, and he now wants to paint a large lemon on…
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Earnest Money on New Construction not Unreasonable Damages
Question: We entered into a contract to purchase a new home in a subdivision in the Buckeye area for $300,000. We deposited $30,000 earnest money in escrow. After 45 days while the home was still in the framing stage, my wife decided that she wanted to quit her job and return to school. We will not be able to afford this new home now, and we would like the return of our $30,000 earnest money. Due to strong demand in our subdivision, the homebuilder has just raised the base price of our model home, and should therefore make a large…
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Developer Responsibility for Protection from Golf Balls
Question: We purchased a home five years ago in a golf community in Mesa. We specifically purchased our home adjacent to a tee box because we did not want any damage from golf balls. The developer is now modifying the golf course and the tee box will be moved so that some balls hooked from the re-designed tee box will end up hitting our roof, windows, or even us! Does the developer have the right to move the tee box? If so can I require the developer to pay for the cost of screening or other protection for our home?…
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Is a Home Builder Liable for Reduced Living Area?
Question: We contracted with a builder for the purchase of a new 5,000-square-foot home in North Scottsdale. After we moved into our new home, we discovered that an outside wall of the home was located almost a foot closer than indicated on the plans and specifications. As a result, there are 200 square feet less of living area in the home. The homes are worth over $300 per square foot in our community. Do we have a claim against the builder for $60,000 because of this loss of 200 square feet? Answer: Probably not. The builder of a home is only liable…
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Arizona Statute of Repose Limits Claims for Construction Defects
Arizona Statute of Repose Limits Claims for Construction Defects Question: We purchased a new home in Fountain Hills in September 2010. We recently discovered that the stucco is falling off in some places, and that there are even holes in the stucco near the garage where we can see the insulation and wiring. After we complained to our homebuilder, they said that their homebuilder’s written warranty expired two years after we bought the home. We then filed a claim with our homeowner’s insurance company, but they denied our claim because they said that a homebuilder’s warranty is for 8…
Read More >>Seven-Day Right of Rescission is Inapplicable
Seven-Day Right of Rescission Inapplicable to Vacant Lot Question: We recently purchased from a homebuilder a lot in a beautiful Sonoran desert community in the Fountain Hills area. The construction of our home on this lot was to be completed within nine months. Although we love the lot, the next day after we purchased the lot we realized that the daily commute to our Camelback Road offices would be too difficult. We thought that under the subdivision laws we had a seven-day right to rescind the contract to purchase this vacant lot. Therefore, that next day we emailed…
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