Can you break a contract if a home’s value changes? – WSVN 7News | Miami News, Weather, Sports | Fort Lauderdale
They signed a contract to buy a house that was under construction. When the house was finished, the developer told them they’d have to pay $200,000 more. Legal or not? Let’s bring in Help Me Howard with Patrick Fraser to find out.
Natalie and Matthew had a plan: get married, have a baby and buy a house.
Matthew Fundora: “Our realtor took us to a new development. We met with the sales office, and they sold us the dream: a brand-new house.”
In March 2022, they signed the contact for a $450,000 home at Chloe’s Estates. Their deposit: $22,500.
Matthew Fundora: “We were very excited for it. It was a big step for us, and we were told that the property should be completed in November of 2022.”
It was not. Month after month, Matthew would call to see why their house was not under construction.
Matthew Fundora: “Days and weeks would go by, and we wouldn’t hear back, and we would drive by the property periodically, and we would see that nothing was going on. It was still just barren land with overgrown grass.”
Finally, two years later, work began. When the shell was up, Matthew asked the company rep if he could come see the house.
He texted back, “Hey Matt, no problem.”
Matthew says he even walked with him to the property, where a man who said he was a supervisor showed up.
Matthew Fundora: “i start being told that I need to exit the premises, that they are – if not, they’re going to call the cops on us.”
Matthew said, a couple of months later he was again given permission to look at his house. Again, he was told by a supervisor to get out.
So he had an idea.
Matthew Fundora: “And we left the review on Google, on their Google page.”
Matthew wrote a review that began with “Terrible company to do business with.”
Three days later, he was contacted by the developer.
Matthew Fundora: “I get an email stating that they just found out that my contract is expired. They’d like to reopen negotiation for me to purchase the property at the current value for $650,000.”
Matthew checked the contract and could not find an expiration date.
Matthew Fundora: “I think it’s outrageous.”
The couple can afford the $450,000 home they signed a contract to buy, but not the $650,000 the developer now wants.
Matthew Fundora: “I think it’s a combination of them being upset with the review, and also maybe at some point realizing that they can get more money from the house than what we signed for.”
Well, Howard, you’ve read the contract. Are Matthew and Natalie out of luck?
Howard Finkelstein, 7News legal expert: “No. Their contract is still valid, because it does not expire and does not prohibit posting a review on social media. If materials increase in cost, the developer can raise the price up to six percent, or $27,000, but not $200,000 as they are trying to do.”
We contacted Reynald Desarmes, who signed Matthew’s contract for R. Homes Development. He referred us to their attorney.
Bridgette Alvarez didn’t mention the contract expiring but said Matthew and Natalie breached the terms of the agreement by improperly trespassing on the property. She referred to a paragraph in the contract which says they had to schedule a visit five days in advance.
Howard Finkelstein: “If this is a breach, and I doubt it, it is not a material breach, and therefore the contract is still valid.”
Matthew Fundora: “Difficult. It’s difficult to deal with.”
Difficult because the house Matthew and his wife signed a contact to buy is almost ready, but will it be for them?
Matthew Fundora: “Seeing something that you were looking forward to so much, and then it’s right there. You can touch it, but you can’t touch it.”
Well put, Matthew. And, by the way, he cannot sue the developer. A clause in the contract requires binding arbitration, which Howard says Matthew should win, but there is no guarantee. The other option? The R. Homes developer has agreed to return the $22,000-plus deposit if Matthew will walk away. We will let you know what the couple decides to do.
Housing a problem you want to move away from? Need to construct a way out? We’ve built a link to us, to hammer home a solution for you.
With this Help Me Howard, I’m Patrick Fraser, 7News.
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