HOME CONSTRUCTION ARTICLES
Principal Residence Exception for Mechanic’s Liens of Sub-Contractors
Question: We signed a contract with a general contractor for $85,000 to enclose a small patio for a fourth bedroom in our Maryvale home. This $85,000 contract said that the plumbing work would cost us $24,000. The construction of the fourth bedroom was completed properly, and we paid $85,000 to our general contractor. We have now received paperwork from the plumber that he was never paid anything by our general contractor, and that the plumber has a mechanic’s lien on our home for his $24,000 plumbing bill. Do we owe the plumber $24,000 when we never even met the plumber?…
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Builder Wants To Sell For Higher Price To Another
Question: One year ago we signed a homebuilder’s contract to build a $1.2 million Peoria home for us. This home is now built, but the homebuilder’s sales representative refuses to talk to us about a close of escrow date. This home has appreciated in value to $1.6 million, and we think that this homebuilder is trying to sell our home to another buyer for a profit of $400,000. How can we prevent the sale of our home by the homebuilder to another buyer for $1.6 million? Answer: Most new home contracts used by homebuilders prohibit any lawsuit and require arbitration…
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How Long Are Builders Responsible For Construction Defects?
Question: Four years ago we purchased a new home in Mesa. We received a one-year written warranty from our homebuilder. In the last few months some of the stucco has started falling off the outside walls of our home. We have been told by a licensed contractor that we have major stucco damage, and that all of the stucco may need to be replaced. When we contacted our homebuilder’s sales agent she said that the only obligation that the homebuilder had after closing was under their one-year written warranty to repair construction defects. Do we have to pay now for…
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Builders Of New Homes Require Mediation And Arbitration Of Disputes With Home Buyer
Question: We signed the builder’s purchase contract to buy a new home in San Tan Valley. The builder’s sales agent made numerous false statements, especially in regard to the upgrades that were available in the home. The “bottom line” is that we canceled the purchase contract and demanded our $20,000 earnest money back. The builder refuses to give the $20,000 earnest money back to us. In addition, the builder demands reimbursement for the $28,000 cost of upgrades that the builder says are worthless to any new buyer of the home. Under the builder’s purchase contract, we are required to mediate…
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Can You Sell Home Not Built By Licensed Contractor?
Question: My husband was a licensed contractor in Oregon. Eight years ago we bought a lot in Queen Creek to build our retirement home. My husband retired two years ago and we came to Arizona full-time to build and live in our Queen Creek home. Three months after we moved into our Queen Creek home, however, my husband unexpectedly passed away. I cannot afford to live in our Queen Creek home by myself, and I may move back to Oregon to live with my daughter. Will I be able to sell the Queen Creek home even though my husband was…
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No Anti-Deficiency Protection for Home Improvement Loans
Question: Last March we bought a home in the “Arcadia Lite” area of Phoenix. We borrowed a high-interest $250,000 second mortgage (“Second Loan”) to “fix and flip” the home. We tore down two of the smaller bedrooms to make a large covered patio surrounding the swimming pool. We completed this construction six months ago and listed the home for sale. We have not had any serious buyers, and last week we reduced the list price again. If we don’t sell the home in the next few months, however, we will be unable to continue making payments on the Second Loan.…
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Mediation and Arbitration, Not Litigation, Can Settle Many Disputes
Question: At the time that we purchased our new Gilbert home six months ago, our landscaping plan provided for a swimming pool in the backyard. We now have the money to build the swimming pool. Due to an incorrect survey by our homebuilder, however, the boundary wall between our home and our neighbor’s home is in the wrong location. The boundary wall now has to be moved ten feet further into our backyard, and we can now only build a “large bathtub” in our backyard. Our homebuilder has refused to take any responsibility for the loss in value to our…
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Home Builders Require Mediation And Arbitration
Question: We signed the builder’s purchase contract to buy a new home in the San Tan Valley. The builder’s sales agent made numerous false statements, especially in regard to the upgrades that were available in the home. The “bottom line” is that we canceled the purchase contract and demanded our $20,000 earnest money back. The builder refuses to give the $20,000 earnest money back to us. In addition, the builder demands reimbursement for the $28,000 cost of upgrades that the builder says are worthless to any new buyer of the home. Under the builder’s purchase contract we are required to…
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