Know your Builder: Construction Defects

Posted by Matt BuckmillerJuly 24, 2007 2:56 PM

Lennar Corp, one of the largest home builders in the United States has instituted two lawsuits against a real estate broker, Mike Morgan for trademark infringement and defamation. Allegedly Mr. Morgan spread false information about the quality of Lennar's construction through a web site that he started. The web site provided a method in which Mr. Morgan could collect complaints about Lennar and give advice to owners of homes built by Lennar.

Before choosing a company to build your dream home, you should do some research on your builder. You should get references from the builder about other projects they have worked on, and discuss with the builders' previous customers whether they think he/she did a good job or not. A little due diligence before construction may save you from selecting a builder inexperienced to construct the home you want built, leading to structural damage and other construction defects.

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CS
Posted by CS
July 25, 2007 2:42 PM

Usually if people are resorting to consumer gripe sites, etc, they're doing it because they've already tried the conventional methods of resolving a dispute and were stonewalled by the builder and told by govt agencies that "it's a civil matter--get a lawyer." Arbitration clauses that are in nearly all builder and warranty contracts prevent suing, so being told to sue in civil court shows the ignorance of the agencies that suggest it to consumers. So, the consumer is left to gripe online. These gripe site should be searched for and taken seriously as they are often the most public of all complaint info on a builder.

Consumers should do VERY thorough research, (some tips below), but they can eliminate many bad builders from consideration by learning first how to spot some common construction shortcuts that are often the CAUSE of complaints and litigation in the first place.

One of THE most common shortcuts we see in complaints is omission of various waterproofing materials like window flashing. MANY new homes do not have it, which virtually ensures the home will leak and start to rot from the inside out. This may not even be noticed until the warranty is up. It costs tens of thousands to repair. Many builders rely on CAULK which is NOT proper construction technique.

Research tips include but are not limited to: court records, because prior to the popularity of arbitration clauses, some people did sue builders. A very few still do despite the prevalence of arbitration. Also, people sometimes have court cases to try and get out of potentially unenforceable arbitration clauses with builders or warranty co's. Check subsidiaries of the builder, too. Check licensing agencies if the state licenses. Check consumer protection agencies and also the (private business organization) Better Business Bureau, but keep in mind none of these may divulge complaints as publicly as you think. If a person were to rely only on the BBB, or some rating or survey, they'd probably be gambling that they would not be one of the owners of a "new home nightmare," because such limited research is totally inadequate and misleading. It's really a raw deal for consumers to be told again and again by the mainstream media that these are sufficient when BBB's etc may not even make complaints public info. MORE than a few homeowners have found out the hard way that the majority of complaints are kept under wraps, one way or another. Arbitration hides many of them because it's a private process, not a public record, in almost all instances.

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