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Does the township hold any funds from the builder who built new construction homes then subsequently went bankrupt within 1 year

Norristown, PA |

The builder completed all the homes in the development, but there are clearly issues with the site. A "pond" forms along the side of the town homes because it was not properly graded. Does the township hold any funds from the builder to fix this? If so, how do I get the township to release the funds to be used?

Attorney Answers 3

Posted

There may or may not be funds held (bond) for this purpose. A good start is to talk to attorney who handles these matters in your area and would be able to research it.

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Posted

You might also want to check on the bankruptcy filing to see what potential claims were listed and whether money posted,if any,was listed on the bankruptcy schedules as property as an initial research step.You can access bankruptcy info through an electronic filing system called PACER which requires registration.Additionally,all bankruptcy attorneys have access.

This answer does not create an attorney/client relationship and is for informational purposes only.For further information please schedule a consultation with an attorney of your choice in your area or at my offices at the location on my Avvo profile

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Dear Norristown - T he other lawyers make good points - but requirements often vary from state to state, county to county and township to township. You can talk to the planning commission, the building inspector and a private lawyer (perhaps the neighbors can all see the same layer, since there is a shared interest. The main issue is the safety and health of the community. Good luck!

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John J Dorsey

John J Dorsey

Posted

More than likely the town would not have any funds held on this project if it was a private development. The owner of the project may have withheld funds from the contractor that did the work. So determine if it was the owner or the general contractor that went bankrupt. If the GC, ask the owner if any retainage was held. It is industry standard to withhold 5% from the each contractor's payment application and not release it until all work is satisfactory completed. If you bought the unit from the owner you may have direct claims against the owner for the condition of the property.

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