There is more to the picture than a single home. Have the other homes built by this builder had problems? Ask a few of your inspectors about the reputation of this builder. This could be an isolated incident caused by new or sub/sub contractors. What type of warranty does the builder offer? Have the problems been brought to the builders attention and has he been given a chance to correct the problems?

The door knobs are improperly installed??? Would love to here the specifics on this claim.

I think it's a small-time builder - who did most of the work himself? I'll ask to confirm, but I think that's the situation...

That's a good question on the warranty...

The locks & hardware on the doors were installed "upside down" and the doors don't open and close properly.

It sounds like a house I would build, if forced to ever do such a thing!

I have to ask...how do you just terminate a contract you have signed with someone?

I agree with Secret Agent and Deep Sea. I would definitely try to educate the builder. It is like having a listing where the seller refuses to do the dishes, make the bed, mow the grass, etc. Maybe the builder can do some cosmetic fixes and get better over time.

However, if it is krap and the seller won't fix the problem, then the Principal Broker can terminate the listing. You play good cop bad cop.

Perky, It's not too hard to get out of a listing if you want out. Nobody wants to work with an unwilling agent.