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Contracts terminated unexpectedly for Eagle Mountain home buyers

Posted at 11:47 PM, May 10, 2021

EAGLE MOUNTAIN, Utah — Multiple people buying new homes in Eagle Mountain have recently had their contracts terminated.

Carl Staheli signed with Spring Run Homes LLC in November of 2020, but he received a text from his agent over this past weekend saying the developer backed out of the contract.

“I had no clue that this day was coming,” said Staheli.

This was to be his first time buying a home.

Staheli said he was told the townhouse could be completed as early as August of 2021 or Christmas at the latest.

“We got the fittings and the foundation,” he said. “I thought I had a home — a home I wanted.”

What he thought was a done deal completely changed, all because of a shortage of supplies.

Staheli shared a copy of the termination letter with FOX 13 News, which read in part: “due to the unforeseeable events... supply shortages, unprecedented increases in the cost of lumber and other construction materials, and delays in delivery of home appliances/products, we are unable to fulfill the contract.”

"Further, we intend to take these homes off the market until such time as we have progressed with construction, made acceptable arrangements for lumber and supplies, and a firm completion date can be established. We will notify you and give you the opportunity to make a new offer to purchase new units at then current pricing."

Staheli said the contract he signed had termination rights for both the buyer and seller included.

Jaren Davis, an executive officer with the Salt Lake Home Builders Association, said a shortage of supplies is a huge issue many builders are experiencing.

“We’ve never seen anything like this,” said Davis.

He added that the market is hard to predict and has never seen so many different areas — supplies, prices, construction — suffer.

Though unfortunate, Davis said it appears Spring Run Home LLC dealt fairly with their homeowners because the contract included termination rights for both the seller and buyer under certain circumstances.

“It’s a clause with conditions, saying we want to work with you and help you,” said Davis.

It's a reality that doesn’t seem to make Staheli or any other homeowner in the area feel any better about their situation.

“It’s been six months since I signed that contract, and now I can’t find a place to live,” said Staheli.

Buyers in Sandy reached out to FOX 13 News a few weeks ago claiming their developer backed out of their contracts and increased the prices significantly.

Staheli’s letter states something similar, promising that once the needed resources become available, the developer will reach out and re-list the new townhome at “current pricing.”

Staheli was also promised he would receive his deposit money back. As of Monday night, he had not.

“What’s the point of a contract if they don’t hold true to it?” he said.

Spring Run Townhomes LLC declined FOX 13's request for comment.