Newsflash: Compensation for finding a lot

Here’s the story: My wife and I were working with a new home contractor to find a lot for him to build for us. He said he knew someone who had two lots in the neighborhood we liked but the seller was only willing to sell them together. The contractor initiated contact and set up the deal. (He claims he got the seller to come down by $5k, but I have no way to verify). We went to the contractor’s office to sign the purchase agreement. He then sent the paperwork over to a closing agency.The closing went smoothly, and after that, the contractor set us up with a local architect to get our plans drawn. We took the finished plans to the contractor and gave him the details he needed to form a quote. It was around this time that we started second guessing our decision to use him.His quote was about $40-50k over what we wanted to spend and I began to realize that his communication skills were not up to my expectations. I would send him a detailed email that would require a response to several topics, and he would reply with two (gramatially bad) sentences addressing the first couple things and not even address the other items. We decided to look at other options and found a contractor that was a better fit for our needs (his bid was also $40k less).Last night I told the original contractor that we had decided to go with someone else and his response was “I feel like you owe me $5k on the purchase of the lots.” The total selling price of the lots was $115k. So, what is my response to this? I know I don’t legally owe him anything but he lives in the neighborhood we’re buidling in and we have kids in the same grade/school so I’m sure I’ll be interacting with him in the future.



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