We were going to buy a house (new construction) in the contract the builder said they have 6 months (180 days) from permit application to complete the house. Recently they said they would not be able to get it done. Basically they won't give us a new date and said when it's done it's done might be 4 more months, 6 more, 9 more. Is this cause to allow us out of the contract with a refund? They told us we could and they would give our deposit back and sell it to someone else but now that we said OK give us our deposit and we'll cut ties, they don't want to gives the money back. Is this right or legal?
It appears you may have a claim for anticipatory breach, by the builder, which would most likely entitle you to a refund, but more information would be necessary to make this determination. Do you have a written or oral contract with the builder? If written, the contract may specify whether failure to complete the home within 6 months constitutes a default entitling you to a refund. If the contract was oral, do you have any documentation from the builder stating the 6-month completion date?
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