New Homes May Have Defects, Why Can't Homeowners Sue?

[Guest guest]

: This is an extremely well done story from Houston's Channel 11 TV. It

: covers all of the issues in a very concise report.

: See the show at: www.hobb.org.

:

: Janet Ahmad, President

: HomeOwners for Better Building

: San , TX

: http://www.hobb.org

:

: News - UpClose

:

:

:

: New Homes May Have Defects, Why Can't Homeowners Sue?

: " These unincorporated areas...are not subject to building codes "

: 01/23/2002

: By Dave Fehling / 11 News

:

: Not since the boom days of the early '80's have so many people bought so

: many new homes in the Houston area . Builders put up some 30,000 new

: houses last year. Yet, the majority of those homes escaped the scrutiny

: of city building inspectors.

: They've been selling at the rate of over 80 every day, seven days a week.

: New homes selling in and surrounding counties.

: Many of the homes may have been just what the buyers dreamed of, carefree

: living in a house where everything is new.

: But some homebuyers say their houses fell far short of their

: expectations. They complain about a number of different problems,

: including the kitchen sink.

: From sinks that sank to roofs that leaked. To plumbing problems they

: allege led to mold, mold, and more mold. Homebuyers wondered how could

: this have happened to their houses.

: But aren't homes under construction suppose to be checked out to make

: sure they meet government building codes? Yes, when it comes to homes

: being built inside cities like Houston.

: But many aren't. In fact, the majority of new homes, some 20,000 last

: year alone, are being built in unincorporated areas of and

: surrounding counties. Out there, there are no building codes for new

: homes.

: Lawyer Mattingly said, " I think most people don't realize these

: unincorporated areas, the outlying areas, are not subject to building

: codes. "

: Mattingly is the lawyer for dissatisfied homebuyer Ed McCrory. Mattingly

: says having a government-enforced building code may not guarantee a

: flawlessly built home but there's at least one reason it might help:

: " Fear! If you're a homebuilder, you know there's a code and you know you

: can be stuck with penalties if you fail to comply with them. "

: In Austin, the legislature knew it was a problem and while it did pass a

: law last session requiring cities to have building codes, it didn't

: extend the law to counties.

: And for homeowners dissatisfied with their new homes, it sometimes only

: gets worse.

: Bob McElvain, at odds with his builder over an alleged cracked

: foundation, says fighting back can be a nightmare.

: McElvain said, " Then you wonder why all the laws are pitted against you.

: (Dave) That's how you feel? (Bob) Well, there aren't too many attorneys

: even interested in representing us. "

: Maybe that's because, like many buyers of new homes in Texas, he gave

: away his right to sue the builder. He signed what has become common, a

: sales contract that calls for disputes to be settled by arbitration.

: That's a private process done outside the courts where a third-party

: professional hears the case.

: " But what they do is, they stack the deck. They pick the arbitrator, you

: pay for the arbitrator, and it's binding on you, " said Cobarruvias,

: with the Texas group Homeowners for Better Building.

: Cobarruvias said, " Its like another Enron. You lose your investment. And

: there's nobody that's gonna help you. "

: Royce West is a state senator from Dallas and he said, " I find that

: reprehensible, I find that unconscionable. "

: So far, at least one legislative committee is investigating complaints

: from homeowners who say they unwittingly signed away their right to sue.

: State Senator West said, " Needless to say, even though I'm a lawyer, I'm

: not for clogging up the court system with a bunch of lawsuits. There have

: to be different ways you can resolve those differences. "

: For now, dissatisfied homeowners have put up signs of protest in their

: yards. Signs that say things like, " buyer beware " or " binding

: arbitration " . Homeowners said that you do whatever it takes to get the

: builders attention.

: But it may take action in the Texas Statehouse before there's a better

: resolution to disputes between a builder and a buyer of a new house.

: Homebuilders did agree to make repairs, but again, not to the

: satisfaction of the homeowners. And in one of the cases, the builder

: complained it was the homeowner who was uncooperative.

: The Greater Houston Builders Association told 11 News, " We very much

: support good housing codes. "

: In fact, the Association says it lobbied the Texas legislature to require

: counties to adopt residential building codes. The Association says it

: will again push for such a law in the next Legislative session.

: Overall, the Association says only a tiny percent of new homes sold here

: result in any disputes over the quality of construction.

: