HOBB Community

The most important lessons we have learned from our ordeal and nightmare (see post in Binding Arbitration forum) have been...

1.  Don't sign any contract that has a binding arbitration clause in it.

2.  No matter how many building or home inspectors the builder has had go through your new home, hire your own.

3.  If you are building a new home, hire an inspector.  Many will charge one fee and come out during several building phases and again when the home is completed.  It is well worth the cost to find and cure problems before they are hidden.

4.  TALK to people in the neighborhood who have purchased and live in homes by the same builder.  Our nightmare could and would have been avoided if we had done this one simple thing.

5.  Listen to your gut.  If it sounds too good to be true and especially if you are told there are NO problems of any kind...don't sign on the dotted line.

6.  One of our most important lessons learned......do NOT sign off on any of your 30 day or 1 year walk through inspections by the builder (if they offer this) until ALL defects have been remedied.

We thought we were buying a dream.  In fact, our builder's slogan is "Dream Big".  We dreamed big and now we "Own a Nightmare".

Sorry to hear of your troubles; likewise, we are going to binding arbitration. Unfortunately, in Texas, ALL homebuilders have that clause in the contracts; plus the state disallows you to go to court without going through the state agency first. And if we win in arbitration (probably will- our foundation has moved 8 1/2 inches), the builder will surely appeal, which can take between 6 months and 5 years! If we ever get out of this (We've sunk $35,000 so far of our own money), we are looking for a previously owned home that we will remodel, AFTER taking to the neighbors!

Wow, what direction has it moved, vertically, horizontally, or both?  Large cracks I imagine, or has it "floated" as one unit?  Either way that's terrible!  Can you also appeal the decision or is that a privilege enjoyed only by the builder?  I read that a home builder, Bob Perry (TX), was trying to say arbitration was unfair to him becasue he lost, after saying it was soooo fair when it was merely homeowners losing.

Our lawyer says that we can appeal as well, but we'd just be wasting our time and money. As I see it, WE are the ones at risk here, not the builder. What has he got to lose if it drags out for four or five years? Meanwhile, we're having to live in a house that looks like it's been in an earthquake!
Incidently, the TRCC inspector ruled in our favor that it could NOT be reasonably fixed; However, Grand Homes appealed to them and a 3 member board essentially REVERSED the inspector's decision and asked them to provide a remedy for repair (raising the entire foundation on steel piers -stilts!). The TRCC is a joke and only prolongs the process. In order for the builder to repair our home, we would be required to move out for THREE months- I will not accept that; it is an undue hardship. We did not buy a new "fixer-upper".

There are builders in Texas who actually do NOT have the binding mandatory arbitration clause.....Corridor Homes is one of them.
We have had a new development in our case and situation.  We protested our property appraisal last year (2005).  At that time we were appraised at $186,000.  Based on all of our engineering reports and photos, they offered to reduce to $93,000.  We refused and went through another legal process.  We just came to an agreement with Denton Appraisal District for a value of $55,000 for 2005 and 2006 with a refund for 2005.  Tarrant County will follow what Denton does.
Here's the good part...........3 homes are part of the lawsuit.  4 of our neighbors have gone to Denton to protest their values of $191,000 up to $226,000.  ALL 4 HAVE BEEN REDUCED TO $55,000!!!!  We are all on an acre and two of the homes have pools!!!!
With 64 homes all by the same builder in our subdivision, we may have a grass roots "flood" (excuse the pun) starting.

Ah, Grand Homes.  I remember seeing a website called Grand Homes Nightmare I think.  I couldn't find it again.  I did find this: http://www.broadbandreports.com/forum/remark,13021774

At least the TRCC is being exposed for the sham it is now.  I think the "not worth it" statement of the lawyers is all over, not just TX.

I can verify that's also in Richmond VA. and North Carolina. In our dead end search for legitimate legal support, one large firm in North Carolina actually told us by phone that NVR/Ryan Homes has so much influence and deep resources, that we needed to face the reality that pursuing legal justice against them may not be cost effective for us, even if we won.

That attorney later sent a certified letter stating for the record that he did not advise us in any way about our case with Ryan Homes. Not sure why he went to such lengths to deter us, and detach himself, but it was typical. I'm told that in large law firms, if just one attorney in a firm has dealings with your builder or their partners, they are barred from representing you against that builder.

That makes it harder on consumers, because builders have so many subsidiaries that use a variety of legal services, with many very basic or minor dealings, that can affect dozens of area firms in areas their law firms do business. They often include clauses in these friendly legal contracts that include restriction clauses against legal firms from ever making them or their partners a defendant in any of their future legal practice. Big builders have used the housing boom money very well, and not missed any tricks in limiting customer recourse from builder negligence recovery.

Yes, it is all over the country.  Builders DO hire up lots of firms, some legitimately, but many in the industry have also told me privately it's to "conflict out" the good ones so their adversaries can't use them.  Apparently a fairly common business practice.  When speaking to each new lawyer you should ask for them to do a conflict check FIRST before you tell them about your case, (at the very least don't tell them anything you think you'd want confidential).

The reason lawyers send an "I don't represent you and I didn't give you legal advice" letter is because the lawyer wants to make sure all misconceptions are nipped in the bud for his/her own protection, and presumably for the consumer's protection.  It's a standard practice and may be a legal ethics rule in some states.

Too many corporations view legal costs, fines, etc, as just a fee they have to pay to play.  If only they would re-set their priorities and put that money into training their workers and building better homes, they would not NEED to spend so much on litigation.

Builders large and small use the guise of multiple companies to hide complaints and escape paying creditors and judgments.  Much of business law is set up to protect assets and keep as much info about your company and people behind it secret.  This is just one area where builders are hiring lawyers: to help them set up business structures that keep unhappy customers at bay.  The LLC is a prime example, with many builders setting up LLC's for every development or even every house.  (Limited Liability Corporation, and boy do they mean "limited liability! You usually cannot get more than the LLC itself has, which could be nearly nothing.)  By the time a homeowner's lawyer sees what they'll have to do, to win and collect, they run screaming.  It's not that it can't be done.  It's just not cost effective for lawyers to do it, nor do most of them have any personal reason to want to do it that badly.  I guess we need more lawyers to get ripped off by builders so there's some motivation there.  ;)