Question: My Buyers Contractor continually extends the Substantial Completion deadline. This has cost my Buyer to extend their loan lock more than once. What can the Buyer do?
Answer: Refer to Section 12.2 of the Construction REPC which states: The Residence shall be considered “Substantially Complete” when occupancy of the Residence is allowable under the rules, ordinances and laws of the appropriate civil jurisdiction in which the Residence is located. In the absence of such governmental regulations, Substantial Completion shall be when the Residence is ready for occupancy and only minor work remains to be completed, corrected or replaced. Subject to the exceptions referenced in Section 13, the Substantial Completion Deadline shall be as referenced in Section 24(e). Seller shall provide Buyer written notice of Substantial Completion of the Residence. Change Orders may extend the Substantial Completion Deadline.
Also under section 13. Section 13: UNAVOIDABLE DELAY. In the event the Residence is not Substantially Complete by the Substantial Completion Deadline as referenced in Section 24(e) due to interruption of transport, availability of materials, strikes, fire, flood, weather, governmental regulations, acts of God, or similar occurrences beyond the control of the Seller, the Substantial Completion Deadline shall be extended for a reasonable period based on the nature of the delay. In such event, the Seller shall notify the Buyer of the delay.
If the Buyer feels that Builder/Contractor is purposely delaying completion, perhaps to sell the property to another Buyer at a higher price, then Buyer may be able to negotiate a fee to cancel the Contract, or they may feel that the property value increase may substantiate waiting longer. Your Buyer may need to contact an attorney for additional remedies available at law.