What to do when faced with issues The buyer of a new house says it has squeaky floors, leaky door frames and cracked basement walls. The builder says the flaws aren't that bad and aren't his obligation to fix. What's a buyer to do? Builder workmanship issues aren't regulated by state and federal agencies like the work of banks, stockbrokers and insurance agents. State attorneys general take construction complaints but generally let parties file claims in civil courts. The Better Business Bureau records complaints and often manages to induce builders to fix problems but can't force them.
Action 9: Shoddy Floor Work Has Homeowner Angry
The new floor, a hardwood laminate, covers the new den plus two adjoining rooms and hallways at his home, but there are sections with the edges sticking up. "It's vinyl, it's vinyl – it's supposed to be hardwood," Wright said...In the foyer it's so bad that the vinyl is coming up in chunks."As you can see, something has dropped on this and vinyl is peeling right off," Wright said. And in a bedroom, the threshold is no longer nailed down, and neither is a piece of den molding.
Ex-Fannie Mae CEO, others charged with manipulating earnings
Builder responds to critics of defective homes
Written by Janet Ahmad
Sunday, 17 December 2006
World Homes says only small number of houses defective -working to repair problems World Homes Guyana Inc says that of the 600 houses it has built so far only a small number has defects because of shoddy work by contractors, something which is beyond its control... Concerns have been raised in several quarters surrounding the quality of work executed by contractors in various locations on low cost housing. Members of the Guyana Association of Professional En-gineers (GAPE) have linked this to the fact that there is no registration system for local engineers hence anyone can carry out construction work without facing the responsibility for work of a poor quality.
Building Is Risky Business Create job documentation that is so tight, it could scare off a hungry attorney at the onset...Review trade contractor's insurance and written agreements...Time to tune up these items. Study your trade contractor's liability policy to make sure the dollar limits are high enough for your jobs, and check for their exclusions in coverage. For example, if your policy excludes soil movement, then be sure your subcontractor has this particular coverage... All jobs should have a written and signed trade-contractor agreement, preferably one which includes "hold harmless" indemnity clauses, waiver of subrogation, warranty provisions, insurance requirements (that you request),and a provision for binding arbitration for dispute resolution. In simple terms, you want to transfer the risk to your subs, making them the primary insured. This agreement establishes which policyholder's insurance will pay first and who is responsible in a claim... Consult a construction-contract lawyer for review of all your sales contracts. Make sure they, too, contain binding arbitration provisions in the event of a dispute.
Who's to blame?
They are among three township homeowners who have been vocal at recent board meetings, putting the blame for their woes on Almont's inspection process and the man who, until recently, was responsible for inspecting the work done by builders... Patrick Smylie says he and his wife have experienced nothing but issues ranging from poor grade and water retention to improper sealing and brick work at their home. They suspect it was built on a spring vein and point to their sump pump, which puts out over 5,000 gallons of water during the wettest months of the year, requiring his constant attention.
Consumer Organization Will Announce Online Database Complaint File Concerning Pulte Homes, DiVosta Homes, Del Webb Homes, Says Executive Director Andy Martin CHICAGO, Dec. 8 /PRNewswire/ -- FightPulte.com, FightDiVosta.com and FightDelWebb.com will hold a Chicago news conference Monday, December 11th to announce a new online database complaint file directed at one of the nation's largest home building firms, Pulte Homes, DiVosta Homes and Del Webb. The news conference will also brand the "Pulte Homes Family" as America's "#1 violator of federal and state housing laws," says Executive Director Andy Martin.
Homebuilder Assoc. Lobbyist New State Rep. Arraigned on bribery, extortion and money laundering
Written by Janet Ahmad
Monday, 11 December 2006
Former opponent discusses Anderson arraignment Alaskans are still reeling after the news of state Rep. Tom Anderson's arrest and new details that continue to emerge...Anderson was arraigned on seven federal charges yesterday, including bribery, extortion and money laundering...he introduced himself, though, as a lobbyist for the Homebuilders Association.
Ernest O'Gaffney wants an initiative on Christian County ballot in 2007 Ernest O'Gaffney, who says last year he unknowingly purchased a home that sits above a sinkhole, will gather signatures for a building-code initiative to be put on the county's ballot in 2007.The lack of building codes perpetuates "a situation where anyone with a pickup truck and a hammer can build a home without any inspection whatsoever, except for the septic tank, thus stripping the public in the unincorporated areas of the county of any protection as to health and safety whatsoever," O'Gaffney wrote in a letter to the county Board of Commissioners.
Under-fire codes inspector warns many home exams will have to be postponed Residents of Overpond Court have been complaining to the supervisors for 15 months that Lee ignored construction defects in their new homes. Their complaints led Labor and Industry to investigate, and the result is a letter to Lee dated Nov. 22 in which he is ordered to show cause to maintain his license...Builder Craig Lowe of Red Lion asked the board how it can ask Lee to step down after he has worked for the township and other local municipalities for more than 20 years.
Mississippi - Three On Your Side Investigates: Building According to Plans or Not?
The City of Madison is dealing with mortgage fraud, foreclosures, and homes abandoned by builders in upscale neighborhoods. Now code inspectors are scrutinizing details on new home construction. One city inspector preferred not to go on camera. He pointed out inconsistencies on the approved blueprints from the current stage of construction on one Woods Crossing home. He said, "It has a dormer over the garage, the plans don't have that." Details specified on plans, but in non-compliance when built. Mayor Mary Hawkins-Butler said the plans submitted are not what's on the ground."
NY State finds inspector incompetent and negligent
Written by Janet Ahmad
Monday, 11 December 2006
State says Stewartstown code inspector certified unsafe homes A Stewartstown building code inspector allowed people to move into a home that lacked safe drinking water, had leaky windows and doors and was built with lumber that wasn't properly identified, the state alleges. The home is one of four in York County that E. Michael Lee certified were safe for occupation but weren't, according to the state Department of Labor and Industry. Lee's certification to conduct building code inspections is in jeopardy. After investigations into his work, the state Department of Labor and Industry says he is incompetent, neglected his professional responsibilities and risked public health and safety.
Masked mortgages - Mayor dupes banks and consumers in scam
Written by Janet Ahmad
Monday, 11 December 2006
With the housing boom over, its dark side is coming to light, including fraud. Government data show more criminals – and more consumers – lied to sell or buy expensive homes.
Pam Houchen, the former mayor of Huntington Beach who helped dupe lenders and borrowers in a real estate scam, is a good example of a national phenomenon. The local scheme contained an element common to other cases nationwide: people tricking banks and consumers out of their money. Such shenanigans, which fall under the umbrella of mortgage fraud, ballooned as the housing market heated up, according to government data and industry experts.
Wrongful evictions can turn homeowners into victims Because mortgage fraud is such a widespread problem in poor communities, it's likely that a lot more people will wind up in Hughes' position. At least anecdotally, this fraud disproportionately affects African Americans and Hispanics, said Cara Smith, a spokeswoman for the Illinois attorney general's office.Among other things, the Mortgage Rescue Fraud Act, which takes effect Jan. 1, requires that the "rescuers" provide a written contract that shows the home is being sold. Rescuers must also make a determination that the homeowner has the reasonable ability to make rental payments and buy the home back.
Area foreclosures are growing more frequent Tara was thrilled when she was able to buy her first home and live closer to her mom. Tara and Jason were both only 21 when they bought the condo...Their first mortgage was with a company offered by the builder of their townhome. The couple made one payment to the first company, and their mortgage was sold to a second company in June 2003...The checks were sent on time as arranged and cashed, but never credited to the mortgage loan.