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New build breach of contract?

TexasConstruction Contract
Anonymous Contractor

Hi I am under contract with a new build (Lennar) and I have paid my $5k earnest money on building the home. It was supposed to be completed in may according to my purchase agreement. The builder has now come back and said two months later that they are no longer able to build that floor plan on the lot I chose. Is this considered a breach of contract? I am in Texas

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 1,003 reviews
Feb 17, 2020
If a contractor has agreed to build a specific house plan and later determines that the contracted house cannot be built - that would seemingly be a pretty strong case for a material breach of contract. While not all breaches will provide the opportunity to terminate the contract or to seek damages, a significant breach that was avoidable, if not for a contractor's poor planning might. But, everything will come down to the terms of the contract. With that being said, if a new build can't be undertaken and that's the fault of the contractor, then the owner should likely be entitled to get out of their contract and likely a release of their earnest money. Ultimately, though, if you're looking to terminate the agreement and recover the earnest money, or if you're looking for damages due to the breach, it'd be wise to consult a local Texas construction attorney. They'll be more familiar with situations like this one, plus they'd be able to review the contract and identify how best to move forward.
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