The contract that you and your custom home builder sign is a legal agreement that outlines what work the builder has been contracted to undertake and how much you will pay them at its completion. Whilst breaking this contract is not a common occurrence, there are a number of reasons why this may occur. If not broken correctly, it could prove to be a costly experience.
Step 1: Research the laws surrounding building contracts in your state; look for reasons that yours could be considered invalid (such as a mistake in the original document or a failure to meet a deadline) or breached (such as bankruptcy).
Step 2: If the reason you need to break the contract is something that could be rectified, speak with the builder to try and renegotiate the document. If you are successful, you will need a new contract drawn up and signed.
Step 3: If your negotiations fall through, perhaps see whether you and your builder can agree to mutually terminate the contract. This would mean that neither of you need to meet its terms after this point.
If you have reason to believe that the contract you have with your custom home builder is invalid or that it has been breached, it is likely that you will be facing a long (and potentially expensive) legal battle. You should try taking your concerns to the builder first, as they may decide that the easiest option is to terminate the contract instead of battling it out in court.
