We have just signed the closing documents on September 17th on a house we had built in Saratoga
Springs. My Real estate broker called me today to inform me the Builder (MT Merrill) had put a lien on the property for $1500.00 stating that we owed that amount because he had received the certificate of completion from the city on August 13th and somewhere in the contract it states that we only have 3 days to close after that.
This is where the problem arises.
First, the superintendent quit or was fired (they wont tell me which) after we conducted our walk through inspection and gave him the list of items that still needs to be finished. One of these items is that all the basement windows leak. After I noticed that only a few items were finished I asked them several times and got the "They're working on it" response several times before they finally told me he was no longer with them and he took the list with him so they needed me to fax them another list. I did this on Monday Sept. 8th. So far nothing has been done.
Next, they were more than willing to "extend" the substantial completion date when we had some trouble selling our existing home and then had to get a different type of loan for the new house. Then the Title Company they required us to go through took two weeks to get the documents to our lender so she could draw up the papers. At this time Robert (he is the broker representing the seller) told us he couldn't see them charging us the 50 dollars per day (which we were led to believe was from three days from the "substantial completion date" not the Certificate of completion" date.) since it was their title company's fault.
Now they hit us with this news.
My broker said we shouldn't have to pay anything because although they received the certificate of occupancy the never told us and never sent us a copy. They claim they did but so far haven't come up with any proof. My wife and I have considered many times to walk away from the deal but we have put over $7,000.00 between our Earnest money and sweat equity that they basically only gave us credit for the labor since we still had to buy our own flooring, paint, and a few lights (one of which they put up the wrong light and did take it out but still haven't put the new one up yet)
Finally the clincher, when we first signed the papers way back in March, he told us they would put the construction loan in our name so we could have the benefit of the tax write off and this also allows the builder to free up his own funds for other projects. He would pay for the interest on the loan and we would then just switch it to a conventional loan when we closed. The lot is also in our name so this is what he told us just today when my broker mentioned we might have to walk away if he keeps this up. He said "you realize the construction loan is in their name already so we can tell the bank we will no longer be responsible for the interest and they will charge you for it AND we will still be charging you 50 dollars per day as well until this gets settled!
So where does this leave me? I have to be fully out of my current home on the 24th of this month. So my wife and our five children as well as I will be homeless and paying for a house we are not allowed to move into. Believe me this is only the tip of the iceberg of all the crap we had to deal with in this transaction. We were so relieved to finally be rid of all the stress and then they hit us with this "pay now and the longer you try to fight it the more it will cost you!"
The agents name for MT Merrill is Robert Brinkerhoff. His # is 801-836-3576
The Builders name is Mike Merrill but they won't give us his phone #.
The reality group that Robert works for is Affiliated reality group in Orem.
Added Sept. 19
We signed a document last night that our Realtor had drawn up that states we will pay $800.00 for the delay and Affiliated Realty will pay $400.00 and MT Merrill will forgive the other $400.00 I haven't heard anything back yet as of 11:00 pm today. We still don't believe we owe anything on this but our broker says it is the only way to keep them from adding more to the lien and a lawyer would cost as much if not more and it would take time which of course means more money.
Brian
Orem, Utah
U.S.A.
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