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Bad builders again

oldbeachbum | Posted in General Discussion on November 3, 2006 09:56am

This is another example of an unscrupulous builder: from www.KING5.com and their Top Stories Link.  You wonder why people are skeptical about your trades.  All it takes is one.

Investigators: Homeowners’ dreams shattered by home building companyView Image

10:52 PM PST on Thursday, November 2, 2006

By JESSE JONES / KING 5 News

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SEATTLE – From a frustrated family in Stanwood to an angry one in Centralia, the KING 5 Investigators have found disappointed new homeowners across Western Washington who bought from Reality Homes in Fife.

Reality Homes has built more than 1,200 houses in Washington and Oregon since 2002. They pride themselves on building affordable homes, says General Manager Pat Eppright.

“We give them the opportunity to buy a home when they otherwise would not have been able to,” Eppright said.

Many get the house they pay for on time, but the ones who don’t have stories to tell.

“You just keep paying and paying and paying while they don’t do anything,” exasperated Reality Homes customer Todd England told KING 5.

Michelle Rylands, another Reality customer, said they just didn’t finish the job. “In the end it was like they just kind of forgot about our house altogether.”

In August, Rylands paid almost $9,000 for drywall installation for her Centralia home.

Reality signed off on the work, but two months later the house failed inspection, in part because the drywall work was never finished.

“Why would you take all the money if you knew it wasn’t done?” she asked.

Rylands says she called Reality for weeks. Fed up, she finished the work herself.

“When were they going to get to it? Six months from now? Eight months from now?”

Todd England says he waited more than two months for Reality to fix construction problems in his Stanwood home.

The delays were too costly and he moved in. “It was financially more feasible to close the loan, get the occupancy and close the loan than to let it drag out,” he explained.

Don Lehman’s troubles really took hold when the framing on his Mason County house couldn’t pass inspection. An engineer’s report called it “grossly defective” and said “parts of the house could fail (and cause) significant structural damage.”

“Our house is at risk,” Lehman said.

When Reality sent the same framer back for what they said was an easy fix, Lehman kicked him off the property and stopped paying.

It was a big mistake.

Lehman, Rylands and England all found themselves trapped by the contract they signed.

“I think the key problem with this contract is that there is no effective remedy if the contractor doesn’t perform its job,” UW Law Professor Kate O’Neill said after examining Reality’s contract at our request. O’Neill says the contract borders on unconscionable.

“Frankly I don’t think any business ought to be drafting a contract like this for consumers in the first place,” she said.

In Michelle Rylands’ case, Reality used the contract to say the two month delay was acceptable.

Eppright claimed Rylands never gave them the opportunity to the work, which they would have completed.

Rylands disagrees. “The time is all put on you. You have all these deadlines you have to reach or they are going to charge you, but if they don’t reach their deadlines, ‘we have an extension of time clause, we don’t have to do that, we don’t owe you anything.’ “

In Don Lehman’s case, Reality again used the contract to say Lehman had to pay even though the framing failed inspection. An arbitrator agreed, ordering Lehman to pay $20,000.

When asked if the company does what’s right, or follows the contract, Eppright paused, then said, “we always try to do what’s right.”

The Lehmans finished their home themselves. Now $60,000 in legal bills are forcing them into bankruptcy.

And their greatest asset is their troubled home.

“If I hear a crack, my first instinct is to leave the house,” Margaret Lehman said, “because I don’t

…The unspoken word is capital. We can invest it or we can squander it.  -Mark Twain…

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Replies

  1. User avater
    Huck | Nov 03, 2006 10:05am | #1

    This is more representative of Big Busine$$ than of trade practices - and a lot of H.O.'s could readily make that distinction, though I'm sure not all.

    "...never charged nothing for his preaching, and it was worth it, too" - Mark Twain

    1. oldbeachbum | Nov 03, 2006 06:49pm | #2

      To a point.  I wish I knew how to tie in for the video link.  A structural section was shown where a joist or rafter end was not seated(too short) into the hanger.  They sent the same framer back to repair it.  Another showing a loadbearing member above an unsupported ceiling section and breaking through the drywall.

      There had to have been some hack with a tool in his hand that saw these and ignored them for whatever reason. 

      Even as a worker bee in my past life I would approach a foreman/boss and let them know something was wrong.  I would proceed no further with the job until it was corrected....The unspoken word is capital. We can invest it or we can squander it.  -Mark Twain...

      1. migraine | Nov 03, 2006 08:45pm | #3

        I think one of the problems in Washington is that anybody can get a GC license, with or without qualifications.  Another is that many of the GC's hide behind a corporation and can easily go bankrupt.

        After living on the Wash Coast, it amazed me how may of the "builders" did not have the competency to do the job and/or supervise the subs who may/may not have the skills either.

        Unfortunately, these are the ones that ruin the reputation for the trade(s)

        1. JoeArchitect | Nov 03, 2006 10:01pm | #4

          Sounds like Washington is like the Midwest. I hate the idea of stereotyping the industry, but those guys make it very hard for good companies to get past clients scepticism of the industry.

      2. User avater
        Huck | Nov 04, 2006 03:42am | #7

        Big Busine$$ doesn't seek or support worker bees like you. "...never charged nothing for his preaching, and it was worth it, too" - Mark Twain

  2. pickings | Nov 03, 2006 10:11pm | #5

    "I think the key problem with this contract is that there is no effective remedy if the contractor doesn't perform its job," UW Law Professor Kate O'Neill said after examining Reality's contract at our request. O'Neill says the contract borders on unconscionable.

    "Frankly I don't think any business ought to be drafting a contract like this for consumers in the first place," she said.

    Funny how many people will not spend the $$ to have a competent real estate attorney review the contract for the BIGGEST single purchase of their lives...........In life, you get exactly what you pay for......contracts included.

    BTW......I'm not an attorney, just a guy who is more than willing to pay one to review all of my real estate transactions.

    1. oldbeachbum | Nov 03, 2006 11:59pm | #6

      Agreed.  Our son and his wife started  to talk about buying and we(DW & I) strongly suggested that, as many parents tend to do.  Would they listen?  Nooooo!  Did he get bitten?  Yes!  And three years later repeated the same offense. 

      Where did we go wrong? (he says , shaking his head)

      Our two daughters were the opposites and one and her husband almost blew a good deal because they were asking for too many guarantees....The unspoken word is capital. We can invest it or we can squander it.  -Mark Twain...

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