Takes One To Know One: Can You “Get Back” at a “Bad” Builder? Dallas Real Estate News

A reader writes:

We recently purchased a new home in the Highland Park area, the builder and seller were both a family “group”. The mother and father funded and the son “acted” as the builder. The seller did not honor any of the contracted warranty or 3rd party inspection items; he refused to do ANY further work on the house, contract or no contract. The builder is not honoring his 12 month contrator’s warranty either. My wife and I have spent more than $100,000 to make “things right” on this home; including mold inspection/remediation and encapsulation. This was a brand new home; no one ever lived in it prior to our moving in back in February, 2011. Any ideas as to how I can get the word out on this builder. In my opinion, he is a thief!  Thanks, Jim and Jane

I am so sorry to hear of all your troubles. I have the highest regard for builders. I love my home builder so much, and trust him so much, if he told me to swim across White Rock Lake, I would. There are many fine builders in Dallas, but like all professions, there are a few who perhaps could be doing “something else” — and I’ll bet you would say that “something” else has to do with concrete. I sought the advice of someone I trust for this one, another home builder, Carolee Kamesch, of Prestige Designer Homes:

Dear Jim & Jane:

The Texas Residential Construction Commission might have been helpful in dealing with your deadbeat builder; however the commission was allowed to sunset by the Texas legislature and ceased all operations in August 2010.  Since the commission is no longer in existence, the terms of your contract will dictate your options in dealing with the builder.  Most builders today will include a “mediation/arbitration clause” in their contract.  These clauses are designed to keep the builder out of court… but that’s not necessarily a bad thing since you want to avoid it, too.   Look at your contract to see if one is included.  If it is, it may require that you go to mediation before filling for arbitration.  Based on the builder’s actions so far, mediation probably wouldn’t have been successful anyway so you would have to proceed on to arbitration to get a binding award for your damages.  The arbitration process is designed not to be as long and costly as a full blown court battle, however it will still be expensive and take many months on a claim the size of yours.  I’m a builder, not an attorney so I can’t give legal advice, but my recommendation is that you contact a good residential construction attorney to discuss your options.  The local Home Builders Association of Greater Dallas would be a good source for attorneys who specialize in construction disputes.  Don’t let the fact that it’s a builder’s organization concern you.  The attorneys who are members of the HBA are experienced with construction disputes and represent both builders and homeowners.  Good luck, and sorry to hear this about a fellow home builder!