No. of Recommendations: 3

I think you are confusing commercial builders with residential builders. A performance, completion or surety bond is pretty much unheard of in residential construction. It isn't until you get into some good-sized commercial projects or most government projects that you will run into bonds.


I do think you might want to see what the survey said. I don't know where in the countryside you are, but it is possible (and required here in Florida) that the surveyor must do a series of surveys to prevent just this occurrence. What role if any did the surveyor play in the building? Did they misset the stakes? Surveyors will likely carry E&O insurance. if there is an error on that end, there will be some recourse.

As BrerBear said, the title company is the next stop, but they are depending upon the surveyor's information. If the survey showed an error after the house was built and the title company moved forward with the sale, then they too will have E&O insurance you can look at.

I would look at your contract for the purchase of your house. Is the legal description of the lot somewhere in there? Your contract should say something along the lines that the house will be built in accordance with local code, etc. Your house, by virtue of it's placement, does not meet those codes. Judging by your post, you have set-back requirements among other things. I would have your attorney calling your builder's insurance company about what is called a construction defect. This litigation will be very familar to the insurance company.

I would also let the builder know you will without doubt go after his license. This will cost him his livelyhood for quite sometime and could cost him his license permanently.

I would also approach your attorney about the mortgage holder. They currently have a mortgage on a house with a very cloudy title.

Lastly, though this isn't going to do anything for you, is talk to an elected official. You had a whole series of inspections getting that house built. The inspector who did the foundation inspection is either a complete idiot or very good friends with the builder. This type of error is getting quite a bit of publicity nationwide currently.


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