Stalled project stymies would-be seller

Consider full range of options to curb losses

DEAR BENNY: A real estate developer planned to build an upscale 48-unit townhouse development. The design work was completed, a general contractor was hired, and construction work began. Four models were built and furnished, a sales office was set up, and sales began. The first two units were sold, and the new owners moved in. However, even 12 months after the first units were sold, only two of the units were occupied.

Then the developer and general contractor became involved in a dispute. The project has stopped for six months and it looks like it might not get under way again. The arbitration process that’s now under way between the developer and the contractor is moving very slowly.

What are the alternatives available to me, one of the two homeowners? It’s unlikely I can sell my unit to someone else with the entire project in such an unfinished state. If I could, it would probably be at a considerable loss.