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Home Lemon Law - Why Texas Needs a Home Lemon Law
Thursday, 07 April 2005

Homebuyers Need a Home Lemon Law


Why Texas Needs a Home Lemon Law
Homebuilders have become confident  they can build homes that are substandard, disposable; and can not be held accountable because of unfair contractual advantages. Over the last 10 years homebuyers rights and protection has been severely eroded. And with the
Texas Supreme Court poised to relieve Texas Homebuilders from the "warranty of habitability", now is the time to restore homebuyers confidence in their new home and their builder.  The reasons for a Home Lemon Law are detailed below and we are fully prepared to debate each one with convincing supporting evidence.
 The Texas Supreme Court and Centex. Centex Homes v. Buecher. Centex Homes (on behalf of all Texas home builders) has asked the Texas Supreme Court to relieve the industry of the "warranty of habitability". The main argument submitted in an  Amicus by the National Association of Home Builders is that Texas home builders provide a home warranty that "offers significant tangible benefits".  These so called "significant tangible benefits" are in fact, an Extremely Limited Unenforceable Warranty. Any ruling in favor of the Home Building Industry will again severely erode the homebuyers confidence in Texas Home Builders.  What confidence can be fostered if a builder cannot warrant a home for habitability? 
Side note: "The justices [Texas Supreme Court] also took $363,338 from Centex's law firms, Baker & Botts and Bracewell & Patterson,..." --The Home Boy's Hold On the High Court.
 Home Warranties are Unenforceable and SEVERELY limited. Home Warranties such as the Residential Warranty Corporation Warranty (RWC) used by Centex Homes, provides protection for Major Structural Defects ONLY, after the 2nd year. And a MSD is strictly defined in the RWC "It materially affects the physical safety of the occupants of the home". See a review of the RWC for details. 

 Mandatory Binding Arbitration Clauses. No access to the Courts. Home buyers have lost their right to a civil trial provided to all consumers through the United States and Texas Constitution by signing these rights away as a condition of buying a new home. In short, a homebuyer cannot sue a Texas home builder. These clauses are found in the new home contract and warranty. 

 Lack of Consumer Protection Agencies. Home buyers with a construction defects have little if any recourse via the BBB or the Texas Attorney Generals Office. Protection for our Veterans by the Veterans Administration is illusionary. HUD is the same. We expect more from our  consumer agencies on the city, county, or state level to help with a construction defect. 

 Lack of Building Inspections. The builders are not required to have a building inspection by a State Licensed inspector, but when you sell your home, you will be required to do so.

 Lack of enforcement of building codes. One of the warranty exclusion from the RWC is "Violation of applicable building codes".  If the builder is in vilation of applicable building codes, the warranty will not cover this.

 Defective Construction Products. Over the last 10 years defective construction products have surfaced costing homeowners thousands of dollars in repairs. Of course the warranties do not cover these such as Masonite siding, Synthetic Stucco, Roofing Shingles, Polybutelene Plumbing. The builders have taken no responsibility for these problems.

 Limitations of the Residential Construction Liability Act. The RCLA  provides more protection for the builders than it does for the homebuyer. It requires an attorney to understand and implement. The Home Lemon law will shortcut and simplify the prcedure without legal representation.

 Health Hazards of our Homes. Many new homebuyers have found their homes and lives destroyed by "silent killers", mold. A homeowner in Dripping Springs Texas was the subject of a national story on 48 Hours. The homeowners learn the builders take no responsibility for this and the insurance companies will not cover the repairs. 

 
New Jersey Judiciary Committee to hold public hearing
Thursday, 07 April 2005
Senator calls corruption hearings in response to Monmouth scandal
A state Senate committee will hold hearings next month to examine how to deter corruption by public officials.
Sen. John Adler (D-Camden), who chairs the Judiciary Committee, said he decided to hold public hearings in the wake of the recent federal probe in Monmouth County that has so far nabbed 14 elected officials, public employees and contractors on corruption charges. "When you have that many people in one county indicted, it suggests the problem is pervasive in every level of government and we have to find ways on a statewide basis to deter it," Adler said. "One way to deter this crime is to more effectively punish the corrupt officials that commit the crime. Another way is to catch them more often."
Read more...
 
Some builders whine about results of State Investigation
Thursday, 07 April 2005

New Jersey Home Builder Investigation
New Jersey's CSI damning report leaves builders spinning, while
State's largest builder, K Havnanian Homes acknowledges problems and supports a Home Lemon Law.


Star-Ledger
Builders defend work after SCI's negative report
Joseph Riggs, group president of K. Hovnanian Homes, the state's largest residential builder, said he did not believe the SCI report was accurate but conceded there have been some problems...
"Problems have arisen," Riggs said. "Most builders, us particularly, stand behind their houses. There have been times when we have responded (to complaints) more slowly than we should have." Riggs said his company could support a lemon law -- that it had, in fact, bought back houses from some owners they could not satisfy -- but he said extending the Consumer Fraud Act to new housing as the SCI also recommended could be nettlesome.
Read more...
 
Pulte Homes Sacrificies Trees for Development
Wednesday, 06 April 2005

Pulte Clear Cut 52 acres 
See Photos

Read more...
 
Pulte Homes Clear Cut 52 acres
Wednesday, 06 April 2005

San Antonio Express-News
Fans of trees bark about city ordinance
Sitting at the foot of the scenic Hill Country, the rolling hills of North San Antonio are covered with acres of Ash Juniper, Live Oak and Texas Red Oak trees. However, one hill — in plain view of U.S. 281 and Stone Oak Parkway — looks more like a desert void of any vegetation.

Read more...
 
Pulte Clear Cuting Again
Wednesday, 06 April 2005
Township acts to save trees from sprawl
Brighton officials draft a plan to guide cutting in a way that protects woodlands
Fran Barr was saddened when nearly 50 acres of woods near her house on the south side of McClements Road near Old U.S. 23 were clear-cut last year...A little less than a year after township officials' phones rang off the hook with residents complaining about the clear-cutting by Pulte Homes and Dominion Building & Development Co., township planners have drafted an ordinance that sets guidelines for developers land owners who want to clear large swaths of trees.
Read more...
 
HOBB Board Member Jo Hayman - “Cheetum Custom Homes”
Monday, 04 April 2005
Home-building law has more than a few cracks
...Jo Hayman...  She formed her company, Cheetum Custom Homes, to prove a point.  She won't build a single house. Instead, the physical therapist wants to show how easy it is to get into the home-building business in Texas.  All anyone has to do to build a home is pay a $125 fee and register with a new state agency, the Texas Residential Construction Commission, or TRCC. "It's absurd," says the Plano woman, now the Dallas-Fort Worth representative for HomeOwners for Better Building. "Almost anybody in this state can be a builder today, and there's no way to stop you unless you are a convicted felon."   ... And under regulations set by TRCC's nine commissioners, most of whom have ties to the home-building industry, items that aren't covered after the first year include roofs, siding, windows, bricks, tile, carpet, flooring, doors, trim, drywall, plaster and stucco.
Read more...
 
Fraud in Houston Housing
Monday, 04 April 2005

Audit slams housing agency
A report finds potential fraud, other problems widespread in city department
For more than a decade, Houston's Housing and Community Development Department chose projects based on its directors' whims, allowed for massive defaults on loans and created opportunities for conflicts of interest and fraud, an independent review of the department concludes.

Read more...
 
The Associated Press - New Jersey Investigations
Saturday, 02 April 2005
Report on home builders finds waste, abuse
"This is a system mired in the past, a system utterly incompatible with 21st century standards and expectations, a system that, in many respects, is as fractured and as imperiled by structural flaws as the problem-plagued homes it has produced," said the report released Thursday by the State Commission of Investigation.
To correct the problems, the commission recommended several measures, including instituting stricter licensing of construction supervisors, requiring currently unlicensed carpenters and masons to become licensed, expanding the state Consumer Fraud Act to include new home construction and creating a "lemon law" for new homes that would require builders to buy back problem houses.
Read more...
 
Star-Ledger Editorial Endorses Recommendations to Regulate Industry
Saturday, 02 April 2005
The Star-Ledger Editorial
Safeguard home buyers
The State Commission of Investigation's latest comprehensive report calls on the Legislature to protect consumers from developers who cut corners. While professional groups are already balking at some of the recommendations, we endorse the move to correct what the SCI found to be a persistent problem in the home-building industry... The SCI proposes a package of legislation including extension of the state's Consumer Fraud Act to new houses, enacting a lemon law that gives a builder a specific time period to correct problems or buy back the house, publishing a list of claims against builders and changing the definition of what's a major structural defect.
Read more...
 
New Jersey recommends Home Lemon Law
Saturday, 02 April 2005
Home building remedies urged
SCI: Industry rife with problems
In its final, 51-page report on its investigation into systemic problems in the building industry, the SCI outlines a battery of suggested changes. Key among the recommendations are an overhaul of the state's Consumer Fraud Act, the creation of a "lemon law" for new home buyers, and a requirement that all construction crew supervisors earn licenses and certification before they can work on New Jersey developments... In its report, the SCI outlines how a "lemon law" could protect buyers of new homes that are still seriously flawed after several repairs are made. The law could force the builder of such a home to buy it back.
 State of New Jersey Commission of Investigation Report
State of New Jersey commission of Investigation 51 page Report
TITLED: The Good, the Bad and the Ugly - New-Home Construction in New Jersey
SCI Latest Reports and Hearings
Read more...
 
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