Bank won't finance our home builder, can he win if he sues us?
June 9, 2011 11:43 AM Subscribe
We have begun building a house, we have the plans, the lot and the builder. No ground broken yet. We signed the contract with the builder. When securing the financing, we were told that the builder has several liens and they will not finance us if we use him. Based on the title search, they said no bank would give us money if he is involve. Could he win if he sues for breach of contract? Can we legally back out of this contract in light of these circumstances?
posted by bodgy to law & government (19 answers total) 1 user marked this as a favorite
The builder we contracted to build our new house has several state and federal liens against him. The bank absolutely refuses to do business with him. In addition, several title companies in town will not work with him based on his history. It also turns out that his LLC was involuntarily dissolved by the state. We signed a contract to build the house however, there was no clause dealing with this. He is very upset about this development as he has put a lot of work into this as far as designing the house as well as finding the right place for us to build. He hasn't come right out and said he is going to sue us however he is upset at this development.
If he decided to sue us, could he win for breach of contract? It's not our fault that he has all of these liens. We have not broken the contract but it's going to be very hard if no bank in town will finance him and no title company will work with him. Not to mention we run the risk of having a lien against our new house because he doesn't pay his bills.