Kindred Homes Lawsuit: What You Need to Know

Kindred Homes is a home builder in the United States. In 2022, a family in Texas sued Kindred Homes after the builder canceled their contract for no reason. The family had already sold their previous home and was homeless when Kindred Homes backed out of the deal.

The Lawsuit

The family, the Brundages, filed a lawsuit against Kindred Homes alleging breach of contract and fraud. They claimed that Kindred Homes had a history of canceling contracts with buyers and then selling the homes for a higher price.

Kindred Homes denied the allegations. The company argued that it had the right to cancel the contract under the terms of the purchase agreement. The purchase agreement contained a “cancel for convenience” clause, which allowed Kindred Homes to cancel the contract for any reason.

The Outcome

The lawsuit was settled in 2023. The terms of the settlement were not disclosed. However, the Brundages were able to purchase a new home.

Conclusion

The Kindred Homes lawsuit highlights the importance of reading and understanding the terms of a purchase agreement before signing it. Buyers should be aware that some purchase agreements contain “cancel for convenience” clauses, which allow builders to cancel the contract for any reason. If a buyer is concerned about a “cancel for convenience” clause, they should consult with an attorney before signing the purchase agreement.

FAQs

Q: What is a “cancel for convenience” clause?

A: A “cancel for convenience” clause is a provision in a contract that allows one party to cancel the contract for any reason. These clauses are often found in purchase agreements for new homes.

Q: Why do builders use “cancel for convenience” clauses?

A: Builders use “cancel for convenience” clauses to protect themselves from unexpected events that may make it difficult or impossible to complete a home. For example, a builder may need to cancel a contract if there is a problem with the property or if the cost of materials increases significantly.

Q: What are the risks of signing a purchase agreement with a “cancel for convenience” clause?

A: The biggest risk of signing a purchase agreement with a “cancel for convenience” clause is that the builder can cancel the contract for any reason, even if you have already sold your previous home and are ready to move into the new home.

Q: What can I do to protect myself if I am signing a purchase agreement with a “cancel for convenience” clause?

A: If you are signing a purchase agreement with a “cancel for convenience” clause, you should carefully review the clause with an attorney. You may also want to negotiate with the builder to have the clause removed or modified.

Q: What should I do if a builder cancels my contract for no reason?

A: If a builder cancels your contract for no reason, you should consult with an attorney immediately. You may have legal options against the builder.

Q: Are all “cancel for convenience” clauses legal?

A: Yes, “cancel for convenience” clauses are generally legal. However, there may be some exceptions. For example, a “cancel for convenience” clause may be unenforceable if it is unfair or unconscionable.

Written for the targeted audience in the USA

The Kindred Homes lawsuit is a reminder that buyers in the USA should be aware of the risks of signing a purchase agreement with a “cancel for convenience” clause. Buyers should carefully review the purchase agreement with an attorney before signing it and negotiate to have the clause removed or modified if possible.

References

  • Canceled for convenience: North Texas family loses home after builder backs out without warning: https://www.fox4news.com/news/canceled-for-convenience-north-texas-family-loses-home-after-builder-backs-out-without-warning
  • Kindred Homes | Complaints | Better Business Bureau® Profile: https://www.bbb.org/us/tx/southlake/profile/new-construction/kindred-homes-0825-235978484

Sources

  1. naoko-aeiyes-kawano.blogspot.com/?download,V-6dOVUa

 

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