California | Real Estate Law
Legal Question
Builder cancels buyers after 365 days and increased costs
I signed a contract in 2/03 for a home in a new subdivision. 1/04 the seller sent a letter stating that since he was unable to complete the home within the 365 days refered to in the contract he was terminating the purchase agreement and I would be first to buy at the new revised price which I would be notified of. When buyers purchased the homes, they were forced to sign an addendum, that was not part of the approved contract by DRE, stating that if an ''event occured that resulted in the sellers sole determination an unreasonable increase in costs the seller may end the agreement''. For these two reasons the seller said he was giving me the opportunity to purchase at 30k more than purchase price.
However, 10/03 I switched lots with the buyer of another lot, everyone proceeded accordingly. When this issue of the 365 days came up, I pointed out that the addendum says all other portions of the contract remain the same that it would be impossible to complete the new lot in the same time frame as it was not yet started. Therefore the 365 days starts from 10/03. The seller has now found that he did not sign that amendment. He ignored the lis pendens and sold the property I was in escrow for. Help!
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