My husband and I purchased a new home last year. We purchased from a builder, but had a Real Estate Agent. Basically, the builder sold us the home knowing it was not up to code. It had several deficiencies. We were only recently made aware of this. We contracted the builder to finish the basement development and were charged $500+ to have a holdback on the funds (we were told this would safeguard us in the event he did not complete the work and would be able to take that money and have it done ourselves). The work was partially completed.... but with no inspections, no permits for fireplace or plumbing and has safety code issues, not to mention the work was extremely sloppy and looked awful.
We received a call from our lawyer in Dec. saying the builders lawyer was insisting on a release of the funds. We advised our lawyer that the work was not completed. I think he may have been under the impression that we were being too picky and stated he could not keep holding it based on cosmetic as we had nothing in the real estate agreement stating the work had to look good. I explained that it was not just cosmetic, that we had a couple of contractors come out to give us quotes and they had said they didn't know how we were even able to move in as is wasn't to code. We found out a few days later that the builder went to his lawyer, signed a statement that the work was completed (under oath) and received the holdback of funds. How is it that we paid to have that money kept back but had absolutely no say as to the release? What did we pay for?
Since then we have had a crack in the foundation that was all the way to the footings, we have 2 broken windows, we have had our siding melted from a fireplace (it was installed without permits), a wetbar installed without plumbing permit and have now found that the insulation and vapor barrier are not up to code (that was found when drywall was removed to repair foundation). We have an open potlight in the shower and one above the tub, wiring for the kitchen was done improperly and the list goes on. We have been working with the city inspector for several months now. He has provided us with several reports. One showing a temp. occupancy permit issued for 14 days and stating perm. permit would be issued for possession providing code deficiencies were taken care. There is a letter from the builder stating the deficiencies were taken care of and perm. occupancy permit was issued. The deficiencies stated in the temp. permit were NOT taken care of in full, but permit was issued based on the builders word.
Now we're at the point where the builder is not communicating at all. The inspector has told us he is issuing an order but has advised us that should the builder not take care of the code issues, the judgement will fall on us and unfortunately there are no laws in place to protect consumers. Can someone please tell me how this is fair?
And the worst part is that the builder is STILL building homes. In fact, some high value homes are in progress at this time. I feel for the poor consumers who are paying him.
I know that if it were me who breached a contract, I would be held liable. In my opinion, the builder should have to refund our money based on the fact that he did not disclose any of this in the contract. Had he done so, we would have walked away. Even if all the issues are resolved, I am not comfortable with the house. Who knows what else will happen down the road.