But now that's getting harder to do because the Texas Attorney General's Office stopped processing all consumer complaints three years ago, and there are fewer homeowner lawsuits at the courthouse because of binding arbitration clauses in contracts.

And, a new state-mandated credential — a registration with the Texas Residential Construction Commission — doesn't carry as much weight as some consumers may think, consumer advocates say.

Cutoff at 2002

The attorney general's office still might help, but you can get information on resolved builder complaints only up to 2002. That's because the attorney general's office, in 2002, stopped trying to resolve each complaint by sending letters to businesses or following up with consumers after every complaint.

"We've streamlined the process to be more responsive," said Paco Felici, a spokesman for the attorney general's office. "We are taking a more diversified approach in how we handle complaints."

Generally, the office will investigate a company for possible action after it sees a pattern of complaints, Felici said.

If the office thinks it can help consumers, it will, but if it deems another agency may be more helpful or that the consumer needs legal representation, it refers the complainant out.

So consumers investigating a builder may request all complaints filed with the attorney general's office and information on any actions taken against someone. But if the complaint was farmed out, it could be difficult to learn how the complaint was resolved or if it was justified.

Consumers should note that the attorney general's office keeps count of complaints going back several years, but physical records are kept for just two years.

Arbitration's effect

Consumers also used to be told to go to the courthouse to check for any major lawsuits against a builder.

But, that's getting harder because most builders have mandatory arbitration clauses in their contracts, restraining homeowners from suing, said Janet Ahmad, a San Antonio-based consumer advocate who heads HomeOwners for Better Building.

There are few homeowner lawsuits because many builders, with the exception of KB, require binding arbitration, she said.

Earlier this year, state District Judge Solomon Casseb in Laredo approved a class-action settlement that prohibits KB Home from requiring customers to consent to mandatory binding arbitration to settle warranty claims.

But trying to learn the outcome of an arbitration is difficult.

That's because arbitrations, by their nature, are secretive and their results tend to be sealed when they are filed with the court.

Plus, even though the Texas Residential Construction Commission allows companies and consumers to report arbitration awards to the agency within 30 days of filing it in court, the commission has received only eight filings in its three-year existence.

Ahmad said that may be because some cases take considerable time to resolve and some companies probably just do not want the information to be public.

Another route

Consumers can also visit the commission's Web site to see if a builder is registered and has any complaints lodged against it with the agency.

But consumer groups warn that it doesn't take much to be registered, and only those builders and remodelers who work on projects worth more than $20,000 must register.

"You basically just need a checkbook," said Carol Ritter, with the Better Business Bureau of Houston. There are no tests or continuing education requirements.

There are more stringent requirements — such as level of education, training, financial stability and insurance — or those applying for a "Star Builder" designation. But of the 25,982 registered builders in the state, only 25 have the designation.

On the commission's Web site, consumers can see how many times a customer has requested to resolve a dispute with the builder through the agency's formal process.

All not included

But only closed cases that the commission is no longer investigating are included in the count. And consumers have to call to find out who the commission agreed with in each dispute. The commission also posts enforcement actions, but most have been about late registrations or other minor infractions because the agency doesn't have the power to force repairs.

Even though the number of closed cases can be found on the Web site, complaints that have nothing to do with construction problems are not. That's because, commission spokesman Patrick Fortner said, the agency's not sure how to — or even if it should — categorize them.

"We are currently doing a redesign of the Web site, and I suspect after the redesign is done, we will really take a long, hard look at a philosophy of nonconstruction-related complaints and how we could go about doing that," he said.

Toy Wood, executive vice president of the Greater Houston Builders Association, said that the construction commission is an evolving agency and at this time is the best first place to check.

"A builder should at least be registered, and it is possible to check for complaints," Wood said.

She also suggested buyers check with current homeowners and noted that lawsuits aren't always definite.

"Just being sued or having a complaint against you does not necessarily mean you are a bad builder," she said.

BBB also limited

Consumers can also check out builders with the local Better Business Bureau. But you won't necessarily always get a true picture. Complaints with the local bureau only go back three years, and at least one builder, KB Home, has its complaints forwarded to the BBB in California.

The Better Business Bureau of Metropolitan Houston has forwarded 19 complaints to the BBB in Los Angeles in the last three years, Ritter said.

The Council of Better Business Bureaus allows member companies to choose which bureau or bureaus will process complaints, Ritter said. Some may choose to send all complaints to one bureau, or others may choose to let a local bureau handle a local complaint.

In recent years, since the formation of the Texas Residential Construction Commission, some builders have dropped out of the Houston BBB. But the bureau still collects and processes complaints on nonmember companies.

Ritter suggested consumers check all independent sources they can, however fallible, and stressed asking for references.

"Know who the principals are, if possible. That's very important with smaller builders. What did they do before they did this?" Ritter said. "And if you're going into a neighborhood where a builder is building out the entire neighborhood, go out to that neighborhood on the weekend and ask people you see out what they think of the builder.

"People will tell you exactly what they think, especially if it's a bad experience, and even if it's a good one."

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