Builder gave us a price when we signed the contract of $200,000. We gave our earnest money, choose house colors and details and we were promise the house of our dreams. After 2 weeks without an update, I called the sales person and he advised me that corporate had not accepted the rate they had given us. That if we really wanted the house to be build and for us we need it to sign a new contract for $213,000. If not, that they would cancel our contract, which was already at the title company by the time, and give us our money back. I told them that of course I was not going to accept nor sign a cancellation because I was not cancelling anything. At the end, they cancelled on their own and just told me to pick up the earnest money and that our house project was cancelled. We were so devastated, we had to renew our contract again at the apartments, had to look for a new builder and we just felt really discriminated because we were not able to get the house at the price they gave us since it was the top amount the lender had given us.
Hello,
You most likely do not have a significant case. What happened was, in recent months, the cost of materials skyrocketed. The builder could no longer afford to do a house at the price originally agreed.
As opposed to starting and being unable to finish and having to come out of pocket, the builder opted to refund all of your money to you so you would not be out of any money. You may still potentially sue for breach of contract but there is a serious question of whether you have suffered a legally cognizable harm given the economic conditions would have 100% made your home woes worse had the builder started and not finished and still needed additional funds for more expensive materials. Your damages are very very small and not likely to be worth your time pursuing but I am just one lawyer.
-Aaron