Lawyer Says KB Contracts "Illegal"
The Donahues sued KB. But before they ever got their day in court, they learned that when they bought the house, they had signed away their right to sue the company. In fact, you may not realize it, but if you've recently bought a home from KB, you've also agreed never to take the company to court. Instead, you've agreed to resolve all warranty disputes through binding arbitration. That's where a third-party hears both sides, then makes a decision that is binding on both parties. "For consumers, it's not such a good idea," St. Mary's Law Professor L. Wayne Scott tells the Trouble Shooters, "because it tends to be controlled by the industry that writes the contract."

Homeowners Say Problems Not Disclosed
KB Home, the largest homebuilder in San Antonio, has been the target of protests from angry homeowners.  Now, the company is the subject of a News 4 WOAI TroubleShooters investigation..."If I'd have known it was a buy-back, there's no way we would've purchased the house," Diehl told the TroubleShooters."Nobody's going to buy my house for what I paid for it," Jesse Font told us. Font claims all of the windows in his home leak. Diehl showed us a crack that runs from his garage, through his house, to the back of his kitchen.  He was aware of the crack when he bought the house but says it's gotten worse.

Attorney knocks KB Home's suit
Arguing before the Third Court of Appeals on Wednesday, a former state chief justice challenged KB Home's attempt to restrain a Kyle couple from publicly protesting about their dissatisfaction with their home. Alice Oliver-Parrott, former chief justice of the First Court of Appeals, criticized a state district judge for granting what she called an overreaching, vague and unenforceable temporary restraining order.

Some complain new homeowner-rights bill not enough
News 8 has reported numerous stories of homeowners complaining of shoddy construction, and being left with expensive repairs. Lawmakers promised to find a way to hold homebuilders accountable, but some wonder if a bill passed Monday really does that...Unsafe and leaky construction has forced Dawn Richardson to move out of the new home she's still paying for. Richardson said the problem was mold, and the lack of a statewide code that would require homebuilders to meet specific standards. "The builders know they can't be held accountable, so I don't think that they are working to resolve issues," Richardson said.

Shoddy Building in the Housing Boom?
Annette Perry was giving her daughter Susan a bath when she heard what sounded like "a truck" slamming into the second story of her new $133,000 home in suburban Phoenix. She ran outside with her towel-clad two-year-old to inspect the roof. Nothing was visibly wrong. It wasn't until she was back inside that she noticed her dining-room ceiling was newly cracked from front to back. She says the builder, KB Home (KBH ), had installed the wrong type of supports for the roof in one spot and failed to align them in another area, causing her walls to bow.

Contractor watchdog faulted
The state agency charged with watching over construction in Arizona isn't doing enough to protect consumers, according to a report from the Auditor General's Office.The audit said the agency needs to fix a $5.5 million deficit in the recovery fund, which helps people who lose money to licensed contractors. A residential builder pays $300 initially to the fund and then $150 annually.