Quote:
Originally Posted by ScreamingViking
How is this legal?
Or is there standard fine print about such options when deposits are put down and initial paperwork is signed.
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The buyers would have signed an agreement that stated if the costs of the project increase then the buyer would have to put down a larger deposit to make up for it. It's totally legal of course, and in some situations quite reasonable. What if the costs of materials or labour jump by huge amounts before constructions is complete? Or what if there is some sort of unforeseen cost increase, like they found some sort of underground condition that caused them to have to increase the size of the foundation, etc etc. What if some sort sort of building code or city council requirement changed between pre sales and construction that caused the design to change. There's loads of reasonable scenarios where a developer may legitimately have to charge buyers more down the line.
However, some developers use this to make more money on rising housing prices which it seems like the case here.