In a recent court ruling, a judge rules on a homebuilder case involving contract cancellations in the Swygert’s Landing community. Discover how homeowners still fight to move into their dream homes years later.
Judge Rules on Homebuilder Case
A recent court decision has sparked renewed attention. A judge is ruling on a homebuilder case involving nine families who were denied homes they designed in the Swygert’s Landing community on Johns Island. The legal battle began when Eastwood Homes, a builder based in Charlotte, abruptly canceled contracts in 2020, citing a paperwork error. More than three years later, the homeowners are still fighting to move into their dream homes.
The controversy began when Eastwood Homes informed the buyers that homes in a particular phase of the Johns Island development had been excluded from the homeowners association covenants due to a paperwork error.
Instead of resolving the issue, the builder terminated the contracts and told buyers they would need to negotiate new agreements at current market rates. These rates have significantly increased since the original deals. Home prices in the area jumped from around $534,000 to $800,000 over this period.
The sudden cancellations blindsided the affected families, especially since many had been closely monitoring the construction process. While Eastwood claimed that its standard contract allowed the builder to cancel agreements due to any “bona fide dispute,” the homeowners argued that this provision was unfairly used to their disadvantage.
In court, Eastwood defended its right to terminate contracts, stating that the HOA paperwork error constituted such a dispute.
Court Ruling Sides With Homeowners
In December, Charleston County Judge Mikell Scarborough ruled in favor of the buyers, stating that the language in Eastwood’s contracts was unreasonable and violated public policy. The judge found that allowing the builder to cancel contracts based on vague or arbitrary disputes was unjust. The ruling was seen as a recognition of the unequal power dynamics between large homebuilders and individual buyers.
Despite this victory, Eastwood Homes appealed the decision, hoping another court would interpret the legal issues differently. The company maintains that it had offered the buyers a chance to renegotiate once the HOA issue was resolved. However, most of the affected homeowners refused.
The situation in Swygert’s Landing is not unique.
Across the country, homebuilders are canceling contracts in hot real estate markets only to offer buyers the chance to repurchase their homes at higher prices. This practice, which some consumer advocates call unethical, has become more common as construction costs have soared since the pandemic.
Similar cases have been reported in states like North Carolina, Texas, and Georgia, where buyers have been left scrambling after sudden contract terminations.
Ongoing Legal Battles
While some of the original buyers in the Swygert’s Landing case have moved on, a few, including the Franquelins, continue to fight in court. The appeals process could drag on for years, leaving their homes’ fate uncertain.
Eastwood Homes remains confident that the legal dispute will eventually be resolved. However, for now, the homeowners are stuck waiting. The outcome of this case could have far-reaching implications for homebuyers across the Carolinas and beyond.
