HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
Latest News
New Jersey
New Jersey & Texas
Write Letters to the Editors
TRCC in the News
Texas TRCC Scandal
Fair Use Notice
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Editorial: Arbitration is the privatization of the Judicial System
Wednesday, 31 January 2007

The deck is stacked against homebuyers
The danger is that an arbitrator has the power of a Supreme Court Justice since arbitration decisions are final and can not be appealed.  For the past 10 years this consumer abusive system has been exploited by the homebuilding industry to avoid all warranty responsibility for defectively built homes.

         Editorial: The deck is stacked against homebuyers
                                                                                   By Janet Ahmad

Arbitration is the privatization of the Judicial System.  The danger is that an arbitrator has the power of a Supreme Court Justice since arbitration decisions are final and can not be appealed. For the past 15 years this consumer abusive system has been exploited by the homebuilding industry to avoid all warranty responsibility for defectively built homes.

It all began in 1994 when the National Assoc. of Home Builder (NAHB) and the American Arbitration Association (AAA) entered into a joint venture to write arbitration rules and builders put arbitration clauses in their contracts.  American Arbitration Association records the history:  “In June 1994, the AAA created the Construction ADR Task Force, comprised of 55 representatives of the construction industry and it advocates. The mission of the Task Force was to undertake a comprehensive review of the AAA’s Construction Dispute Avoidance, Management and Resolution Services, including rules, administrative policies, panels, binding and non-binding forms of ADR, education and training programs, and outreach, with a goal of improving AAA services and helping the AAA be more responsive to the needs of the construction industry.”

For the past 15 years NAHB’s members have continued to supply AAA business with excessively expensive binding arbitration services while homebuilders consistently received favorable binding arbitration decisions from AAA. 
Construction Arbitration Services (CAS) is the fastest growing binding arbitration service company whose solo purpose is to resolve construction disputes for the homebuilding industry.  CAS has close ties with the largest 3rd party home warranty companies whose records documented denial rates as high as 86% of all claims.   Due to repeat homebuilder business homeowners inevitably lose.

    Binding Arbitration Is Not Consumer Friendly 

  •  High Cost of Arbitration.
  •  Non-disclosure of high costs associated with Privitized Court.
  •  Creates Unfair Bargaining Position.   
  •  Creates Un-level Playing Field.
  •  The Builder has Superior Knowledge.
  •  Creates an environment for Bias because of repeat builder customers.
  •   Binding Arbitration Decisions are Non-Appealable.
  •  Courts Upheld - Arbitration Decisions can result in Non Compliance with State Law.
  •  Courts Upheld - Arbitrators can misinterpret the terms of Contractual Agreements.
  •  Arbitration Confidentiality.  No Public Record.  
  •  Limits the Consumer to Only One Dispute Resolution.  

< Prev   Next >
Search HOBB.org

Reckless Endangerment

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon

Barnes & Noble

Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Texas Regulates Homebuyers
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

HOBB Update Messages

Consumer Affairs Builder Complaints

As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

TRCC from Bad to Worse
Case of the Crooked House

The Pat and Bob Egert Building & TRCC Experience 

Builders Looking for Federal Handouts

Build it right the first time
An interview with Janet Ahmad

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

Homebuilding Texas Style
And the walls came
tumblin' down

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 


Have you seen any of these individuals

 Feature: Mother Jones Magazine
Are you Next?
People Magazine - Jordan Fogal fights back
Because of construction defects Jordanís Tremont Home is uninhabitable
You could be the next victim
Interview with Award Winning Author Jordan Fogal

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

Letters to the Editor
Write your letters to the Editor

Homeowner Websites

top of page

© 2022 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.