Real Estate

Builder made a mistake on upgrade

  • Last Updated:
  • Sep 21st, 2020 10:58 pm
Deal Guru
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Mar 23, 2008
11348 posts
7655 upvotes
Edmonton
mingyang wrote: stop posting garbage advice. seeing that you live in Edmonton, I won't judge you. perhaps where you are, the builders are 'fairer"
Maybe you should cut back on the garbage answers, like the OP will "spend thousands on your lawyer to sue and get the same or worse outcome".

First off, there's no reason to spend thousands on a lawyer for a case like this. He's got a contract, signed by the builder, specifying the changes. He can represent himself in small claims court.

Second, filing in small claims court now increases the builder's cost for breaking the contract significantly, because they probably WILL send a lawyer. This will increase the odds of them deciding to settle out of court at more favorable terms to the OP.

Finally, it has nothing to do with the builders being "fairer". And frankly, I don't give a flying fig if you judge me or not.

C
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Mar 14, 2006
4341 posts
762 upvotes
CNeufeld wrote: Maybe you should cut back on the garbage answers, like the OP will "spend thousands on your lawyer to sue and get the same or worse outcome".

First off, there's no reason to spend thousands on a lawyer for a case like this. He's got a contract, signed by the builder, specifying the changes. He can represent himself in small claims court.

Second, filing in small claims court now increases the builder's cost for breaking the contract significantly, because they probably WILL send a lawyer. This will increase the odds of them deciding to settle out of court at more favorable terms to the OP.

Finally, it has nothing to do with the builders being "fairer". And frankly, I don't give a flying fig if you judge me or not.

C
you simply do not understand builder's 'agreement' with purchasers here in Toronto area.
breaching what contract? have you read the agreement of purchase signed by the OP? the agreement would have a line similar to this
The purchaser acknowledges and agrees that if, upon Closing, any of the extras, upgrade or change ordered by the Purchase remain incomplete in whole or in part or if the Vendor shall, in its sole discretion, determine that it will not provide extras, upgrades or changes or cannot complete the extras, upgrade, or changes then there shall be 'refunded to the Purchaser upon Closing"
you have one hand builder protecting themselves via the agreement
second hand, Tarion protecting the builder.

do you still want to sue?
Deal Expert
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Jul 30, 2007
27571 posts
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Toronto
@CNeufeld

Tarion will request the builder to refund the upgrade paid. Homeowner cannot take the case to small claims court. If homeowner does insist of going to small claims, OP will have no case as long the builder has agreed to refund the $.
Deal Guru
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Mar 23, 2008
11348 posts
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Edmonton
mingyang wrote: you simply do not understand builder's 'agreement' with purchasers here in Toronto area.
breaching what contract? have you read the agreement of purchase signed by the OP? the agreement would have a line similar to this

you have one hand builder protecting themselves via the agreement
second hand, Tarion protecting the builder.

do you still want to sue?
It's not up to me to sue or not sue, as I'm not the OP. I'm trying to provide the OP with some options. I don't have the OP's contract in front of me, but if there is a clause like that in his contract, then he is likely screwed.

C
Deal Fanatic
May 1, 2012
9358 posts
8190 upvotes
Markham
Had this happen to me actually. What they do is give you your money back. There is no recourse. As a goodwill gesture, they may offer something else for compensation... something easy like... kitchen crown molding or whatever... but they aren't legally bound to do anything but return your cash.
Deal Fanatic
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Feb 2, 2014
8242 posts
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Toronto
rfd3333 wrote: Bought a pre-construction home, and upgraded the pickets on the staircase to metal ones. Now that the house is almost complete, I see that they have installed the (cheaper) wooden ones. I called them, and they said pretty much said too bad, the upgrade was made too late (it was an amendment a few weeks after the original decor appointment) and we are not going to install the metal pickets. They have told me to come in and take the refund for the amount paid for the pickets.
Is this something I can mark down on the PDI inspection and have the builder replace later? The contract clearly states that its metal pickets.. the builder simply screwed up and ordered the wrong ones. It will cost me much more $$ in labour to upgrade these later.
Tarion will just say they are reimbursing the cost of the upgrade. End of story unfortunately.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Banned
Sep 7, 2017
9 posts
6 upvotes
As others have said... you'll just get a refund on upgrade. It's not guaranteed you get all requested upgrades
[OP]
Newbie
May 20, 2017
16 posts
7 upvotes
Thanks for the input everyone. I'll just take the refund and call it a day.
Deal Fanatic
Apr 11, 2006
8149 posts
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Mississauga
rfd3333 wrote: Thanks for the input everyone. I'll just take the refund and call it a day.
OP, don't just take the refund. Although most likely, but at least confirm said clause exists in your specific purchase agreement before accepting the refund (rather than assume it exists).
Deal Expert
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Jul 30, 2007
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kenchau wrote: OP, don't just take the refund. Although most likely, but at least confirm said clause exists in your specific purchase agreement before accepting the refund (rather than assume it exists).
Upgrade selections are not part of the orig purchase & sales agreement. There is no clause in there states if unfulfilled, the builder would have violated the contract agreement. After all, builders (in Ontario) are not stupid, there are many occasions that upgrade items may be missed or not the right color or item has been discontinued by the manufacturer, hence it cannot be filled. That's why Tarion comes in and lay down the rules for builder to refund the $.
Deal Fanatic
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Sep 8, 2007
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Way Out of GTA
rfd3333 wrote: Thanks for the input everyone. I'll just take the refund and call it a day.
Well, I'd take the refund, but ask for a goodwill gesture...perhaps an upgrade that's still doable like a backsplash.

If not, make sure to reflect your situation on their reviews. If a builder told you they could do it, didn't do it, and in this case could make it right...but won't. I think it reflects poorly on them. The spindles can absolutely be changed they just don't want the cost and don't care about buyers satisfaction. This is an unfortunate part of the housing bull market we've been in...the builders have the power to do this.
"It is in times of great fear or greed that the most opportunity exists."
[OP]
Newbie
May 20, 2017
16 posts
7 upvotes
cartfan123 wrote: Well, I'd take the refund, but ask for a goodwill gesture...perhaps an upgrade that's still doable like a backsplash.

If not, make sure to reflect your situation on their reviews. If a builder told you they could do it, didn't do it, and in this case could make it right...but won't. I think it reflects poorly on them. The spindles can absolutely be changed they just don't want the cost and don't care about buyers satisfaction. This is an unfortunate part of the housing bull market we've been in...the builders have the power to do this.
Unfortunately the builder already has a terrible reputation when it comes to customer service. I knew what I was getting into when buying with these guys (larger homes in exchange for cheaper standard finishes/ terrible customer service). I'll wait to see how they handle it before mentioning their name up online though. Perhaps they will make it right by throwing in a backsplash or something.
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Sep 8, 2007
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Way Out of GTA
rfd3333 wrote: Unfortunately the builder already has a terrible reputation when it comes to customer service. I knew what I was getting into when buying with these guys (larger homes in exchange for cheaper standard finishes/ terrible customer service). I'll wait to see how they handle it before mentioning their name up online though. Perhaps they will make it right by throwing in a backsplash or something.
Mattamy Homes. It happens. Maybe others that have been in this situation can give e input whether it's just a straight refund or is there a possibility of a bonus.
"It is in times of great fear or greed that the most opportunity exists."
Member
Feb 12, 2008
210 posts
191 upvotes
Toronto
I would hint that i'm sharing my honest unbiased story with friends and family via instagram and facebook if they feel a goodwill gesture is not worth it.
Then I would find the hashtags they love to use on social media, create new account and repost my story weekly until they abandoned the hashtag.

Mistakes happen yes... these builders gross millions in profit. It takes nothing for them to spend upto .01% of their profit to fix a mistake they made. If they want to sacrifice my happiness for profits, well they can sacrifice reputation by way of an HONEST release of the story as well.
Deal Fanatic
Jun 7, 2005
8703 posts
598 upvotes
Happened to me too, and the builder just refunded that upgraded amount to us.

The good thing is that they also mixed up the paper work with other upgrades and gave us some free major upgrades for free ;)

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