Is it unreasonable to request a builder credit us for the cost of mortgage rate lock extensions when the delays that necessitated the extensions were clearly their fault?

I got under contract for a new build construction in March of this year. At the time we signed the contract, the home was already framed out with major plumbing/electrical work completed. The builder told us he would "push for 75 days" but that it would be more likely 100 days to close. Based on his guidance, we waited a couple weeks from that meeting date, and then locked in our mortgage rate for 90 days. Following that meeting, the builder's attorney communicated a close date to us for late May, which was perfect for us as our mortgage rate lock expired in mid-June.

There were then several delays in the construction. We aren't naïve and knew to expect normal course construction and supply chain delays a typical part of the process, so we made sure to apply for financing through a lender that allowed you to hold onto your mortgage rate lock with extension fees (which was clutch as we've watched the rates skyrocket since then).

Due to the construction delays and the builder's focus on other projects that got under contract first, our close was pushed from late May to mid July, and then finally to the first week of August.

As we approached the third amended closing date in August, we stopped hearing from the builder and his agent entirely. Radio silence as the closing date came and went without a peep. Our agent eventually got in touch with the city's building department and learned that the reason we hadn't heard from the builder was because somebody had filed a zoning complaint against the construction, and it failed an inspection in the beginning of August.

Long story short, the builder deviated from the plans that were approved by the town. Specifically, he added an element back to the plans that the town had explicitly told him to remove it or request a modification with the state, to which he replied "Will comply. Modification will not be sought."

Because we weren't hearing anything from the builder or his agent, I called the city building department myself and learned everything I could about the issue and the potential options the builder was considering to remediate. In the building official's words, our builder had some "pretty big issues to address that he created for himself."

Over the next several weeks/months, the builder went to great expense to fix the issues, seek modifications with the state, and get the building back in compliance. This has taken nearly 3 months address since the building failed inspection in early August, and as a result, we've needed to commit to significant additional fees to hold onto the rate we locked in March.

Given that the delays related to the zoning issues were solely a result of the builder's failure to live up to his contractual obligation to build the property in strict accordance with local codes, would we be within our rights to seek credit/reimbursement for the final 3 months of mortgage rate lock extensions which have added over $8,000 to our closing costs? Or is it an unreasonable request?

I can picture the builder saying "I went to great expense to address these issues and it's not my problem that you need financing when I could have just as easily waited for an all cash buyer who didn't have that concern."

I was originally inclined to ask that the builder pay for rate lock extensions from the zoning issues onward, but it's been such a tumultuous journey already I'm afraid of upsetting the apple cart so close to our actual closing date. So, I would appreciate some outside perspective here on whether or not it would be reasonable to expect some sort of accommodation given these circumstances, or if this is all "typical" and I just have to deal with it.

submitted by /u/TurnTwo
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source https://www.reddit.com/r/RealEstate/comments/yfoi8j/is_it_unreasonable_to_request_a_builder_credit_us/