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In a residential home contract, does the owner have any recourse if the builder cancels the contract?

Indiana

I am a residential general contractor who signed a contract to build a house for a customer. The customer hired their own excavator, and at the owner's direction, the excavator dug a hole for the basement. The owner cancelled their closing with the title company, so they had no funding from a lender to begin the project. The owner also began making purchasing decisions without filling out change orders. The contract stated that X amount of dollars was to be paid to me before the start of the project, which was not possible since the closing was cancelled by the owner. If no money has changed hands and no work has been performed by my the builder, does the owner have any legal recourse if the builder cancels the contract due to breach of contract by the owner?

1 reply

Oct 1, 2020

I am attorney Nick Podlaski of Podlaski LLP. I handle a significant number of residential improvement/new home construction matters. This sounds like a good breach of contract case, assuming you had a contract and it is compliant with the Indiana New Home Warranty Act. Feel free to give my office a call at 260-782-1712 for a free 15 minute consultation.

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