What are some signs that a homebuilder may be going bankrupt?
Jan Meriss Alfonso Assistant at Ascent Law LLC There are several warning signs a homebuilder may be in financial trouble. These include large spikes in completions or drops in volume. You can also look at the QBCC website to see if a homebuilder has filed for bankruptcy. Delayed build times If you're thinking about buying a new home from a local builder, it may be worth looking at their build times. If the builder is constantly delaying their completion times, it could mean that they're going bankrupt. It can also be a sign of internal problems. If a builder is unable to follow through on its commitments, you might want to consider using a building broker. Unpaid subcontractors While the unpaid subcontractor may not have the legal right to sue the home builder or owner, it could bring about cash-flow problems on the job site. If the subcontractor does file for bankruptcy, he or she could have grounds to pursue payment. In this case, the homeowner or general contractor must ta...