Shoddy Construction - 3rd Owner - Legal Recourse?

[Alcyone]

Jurisdiction

Arizona

I purchased a house in June of 2020. Since owning it, I've found that drywall has been hung without edges meeting up over studs and joists. Additionally, behind the drywall, adequate studs and joists don't exist so that drywall edges can be secured. As a result, I've been having to deal with drywall seam cracks that keep occurring and countless hours spent making repairs.

Do I have any legal recourse against the HOA, home builder (Beazer Homes), the previous owner, or the inspector that I hired before purchasing? I'm at least the 3rd owner of the home which was bult in 2003.

In the inspection report, which I still have, he specifically calls out the existence drywall cracks and states that it's normal for this area, but doesn't mention that the drywall was improperly installed onto inadequate framing. This could have been determined with a simple handheld stud finder. I would have never purchased the home had I known this was the case.

Thank you

 

[adjusterjack]

Do I have any legal recourse against the HOA

No. The HOA had nothing to do with the construction of the home.

home builder (Beazer Homes),

No. That ship sailed long ago. Scroll down to Paragraph C for the statutes of limitations on construction defects in Arizona.

Construction Defects in Arizona: Here's How Long a Builder is Liable - MacQueen & Gottlieb PLC (mandglawgroup.com)

the previous owner,

Highly unlikely. You saw, or should have seen the cracks and addressed them before you even wrote the purchase contract.

the inspector that I hired before purchasing?

I don't think that the inspector had any obligation to go around the house with a stud finder, unless instructed to.

Again, the cracks were visible to you on any number of occasions during which you could have made an issue of them.

A couple of cracks throughout the house may be normal but if you ignored rooms full of them, that's on you.

However, as always, you are welcome to consult an attorney and review your options.

 

[zddoodah]

Do I have any legal recourse against the HOA, home builder (Beazer Homes), the previous owner, or the inspector that I hired before purchasing?

• HOA: Highly unlikely. What does the HOA have to do with the issue (or anything to do with the construction of the home?
• Builder: Beyond unlikely. Did you have any sort of contractual relationship with the builder?
• Previous owner: Maybe but doubtful. Did the previous owner give you a disclosure statement at the time of closing? If so, I assume this wasn't disclosed. Do you have any evidence that the prior owner knew about the issue? Even if the seller knew, you also were on notice (see below).
• Inspector: Unlikely for the reasons discussed below. Did you hire him to do anything other than a visual inspection?

In the inspection report, which I still have, he specifically calls out the existence drywall cracks and states that it's normal for this area

Ok...so you knew about the issue before moving in. Did you inquire further about it being "normal for this area"? Do you have reason to believe that it's NOT "normal for this area"? Legally speaking, you were on "inquiry notice." In other words, anyone you sue will argue that you were on notice of facts that would have caused a reasonable person to make further inquiry and/or inspection. Based on the minimal information provided, I think it's more likely than not that it's a winning argument.

but doesn't mention that the drywall was improperly installed onto inadequate framing.

Framing isn't something that can be inspected visually, and the standard home purchase inspection is only a visual inspection.

 

[Alcyone]

Thank you very much for the replies. This is exactly what I needed to know. I have no evidence the prior owner knew about this problem and I should have pressed the issue further before buying. Also, after looking through my paperwork, I'm unable to locate a disclosure of existing issues.

Regarding the HOA, I wasn't sure if they're usually involved in the building process. It's apparent that they aren't.

Would the county Building and Safety Department be liable for anything? I'm surprised builds like these can pass inspections.

 

[army judge]

Would the county Building and Safety Department be liable for anything? I'm surprised builds like these can pass inspections.

Governmental entities are RARELY held liable.

They're akin to reigning sovereigns, who are immune from liability.

 

[adjusterjack]

I should have pressed the issue further before buying.

And if not before "buying," the standard AZ real estate purchase contract allows for an inspection period during which you can back out of the purchase if you aren't satisfied with the condition and/or requested repairs get declined.

Also, after looking through my paperwork, I'm unable to locate a disclosure of existing issues.

AZ requires an SPDS - Seller's Property Disclosure Statement. Did you overlook that?

Would the county Building and Safety Department be liable for anything? I'm surprised builds like these can pass inspections.

Builds like what? Have you actually opened up a wall to determine the distance between studs?

 

[Alcyone]

Hello adjusterjack. I will attempt to find the SPDS and look it over, although I don't recall getting one.

I have opened up some ceilings and discovered that joists only run in one direction with no cross members. Furthermore, they're not at regular spacing intervals. I'm actually in the process of installing some cross members over the drywall seams (from above in an attic) so that it can be properly secured. I assume the walls are the same way.

 

[Zigner]

I have a relative in Arizona who recently bought a house. The house is built more like a mobile home than a house. I suspect that many houses in Arizona are that way.

 

[Alcyone]

I have a relative in Arizona who recently bought a house. The house is built more like a mobile home than a house. I suspect that many houses in Arizona are that way.

From what I've seen, cheap build quality seems to be rampant throughout the Phoenix area. After doing a bit of research, I was shocked to learn that some professional drywallers consider hanging drywall with only 2 of 4 edges meeting up on studs/joists is acceptable.

It's good to know that I don't have any legal resource.

Thanks for all the help.

 

[adjusterjack]

I was shocked to learn that some professional drywallers consider hanging drywall with only 2 of 4 edges meeting up on studs/joists is acceptable.

Of course it's acceptable. That's how it's done. If you were paying a builder to build you a house and instructed the builder to put nailers behind the short edges you would choke at the additional cost for labor and materials.

 

[army judge]

Readers suggested a topic surrounding construction problems arising from a housing bubble. "I think in the coming months and years we will see more stories like this. It was only a matter of time before builder cost-cutting began to cause problems for buyers."

One said, "In the early 1990s in San Diego, construction defect litigation was a real cash cow. Looking for that to fire up again, partly legitimate, and partly as a ploy for FBs to try to get out of their obligations."

Another, "I bought new from Fulton Homes in 95 in Gilbert. A class action was filed a few years ago for improper slab prep (not post-tensioned) & poor grading on expansive soil. Luckily I only had minor damage, like settling cracks. Some people had huge problems. It took over 2 years to play out. $5 mil judgement. The lawyers took a third. Yeah, there's some money in it if you target the big HBs. Given all the recent building, they should be quite busy for the next few years."

One reader added, "My work in the construction defects business sent my kids to college."

One from California. "Back in the mid-80's, I lived North San Diego County. There had been a mini-boom in the late 70's which, like all booms usually busts at some point. One weekend I drove around the Oceanside area and came across a whole street of SFH's which were empty and the street was overgrown with weeds. I ignored the 'danger' signs and ventured into one of the houses and saw huge (6″ in places) cracks in the floor of the kitchen caused by subsidence."

"Someone who's father was a small builder told me that when there's a boom, it's hard to find various things like good building material (wood especially) because, for instance, the wood is being cut so fast and seasoned in kilns so badly, that's it just a matter of time before problems show up in 'rushed' construction."

"In these boom (and eventual bust) times, EVERYONE is grabbing for the money as fast as they can. The list includes (starting with the main offenders), real estate brokers and their sales people, mortgage brokers, speculators, building material suppliers, inspectors of all kinds, termite companies doing as many jobs as they can, because the realtors and owners and buyers want a termite inspection certificate quickly to satisfy mortgage requirements."

"Most of the builders employ sub-contractors to do the plumbing, air conditioning, roofing, etc. In boom times, they too rush to complete the job in order to get onto the next job to keep the money pouring in but, for the new home owner, many of these bad construction don't appear for several years until the shoddy plumbing and roofing starts leaking and the termites find some tasty timber which wasn't treated correctly."

"The end result is, there are going to be a lot of very busy lawyers in the next 10 + years but a lot of people are going to be unlucky because (like the building company Kara) many of these builders will be out of business or will have found protection in bankruptcy."

One added, "Bottom line … pre-bubble the argument to 'invest' was: Even if rent doesnt cover mortgage + other expenses, profits will come from 'appreciation.'"

"Sooo post-bubble the logical approach shall be: Even if rent is above mortgage + other expenses, better dont buy because of the 'depreciation' factor!"

The Wall Street Journal. "With once-hot condominium markets across the country in sharp decline and many real-estate professionals predicting a further weakening, some developers are facing more than a glut of unsold inventory. Angry condo buyers from Boca Raton, Fla., to San Diego are taking them to court, alleging everything from breach of contract to fraud."

"In Florida, 2,557 individual complaints against developers were filed in fiscal year 2006, ended June 30, up from 1,825 two years ago, according to the state's Department of Business and Professional Regulation."

"In Colorado, at least 18 lawsuits have been filed by attorneys representing condominium-owners' associations in the last two years. Most involve complaints of shoddy construction or faulty repairs in recently completed developments."

"In California, developer Crescent Heights is being sued by condo owners in three of its projects, including the Metropolitan, a recently completed 342-unit development in San Francisco's Rincon Hill district. Ben Bedi, who filed the suit, says he put down a 5 percent deposit on a $1.7 million condo during preconstruction in 2004."

"In his complaint, the 41-year-old attorney alleges that when he moved in at the end of 2004, he found defects such as screen doors installed backwards and water pipes that leaked. The complaint also alleges that the developer misrepresented the size of the apartment. 'I paid a lot of money for what I thought would be a brand-new home,' Mr. Bedi says. Instead, he says, he has spent thousands of dollars just on repairs and other labor."

"Real-estate professionals attribute this latest wave of legal actions to the surge in preconstruction purchases during the recent market surge. 'You've got buyers out there who paid one and two million dollars or more for a condominium and are now dealing with everyday construction defects,' says Ross Feinberg, a California attorney who specializes in construction litigation."

"'Right now, the condo market is a disaster,' says Lewis Goodkin, a Miami economist and real-estate analyst. The crash in some areas was inevitable, he adds. 'These markets were essentially propped up by speculators.' Indeed, investors accounted for as much as 80 percent of the preconstruction purchases of luxury condos in Miami."

"Dried-up demand and rising construction costs have forced many developers to stall or cancel projects, particularly in formerly hot markets that are now overbuilt. In Las Vegas, an estimated 6,900 condo units have been suspended in the sales process, while another 1,900 have been canceled officially."

"As the number of scrapped projects increases, so too do the complaints. In Florida, many condo suits involve severely delayed, cancelled or recently completed projects in the southern part of the state."



...............

The Housing Bubble Blog » Shoddy Construction And The Housing Bubble
...

 

[Alcyone]

Of course it's acceptable. That's how it's done. If you were paying a builder to build you a house and instructed the builder to put nailers behind the short edges you would choke at the additional cost for labor and materials.

Drywall that isn't secured at all 4 edges will inevitably develop visible joint cracks over time. So if I were paying to have someone build me a house, I certainly wouldn't compromise on this aspect regardless of the added cost. Now, if I were a home builder with profit being the only thing in mind, the cheap and fast construction method would make more sense. This is why we should have building and safety laws at the county level that protect buyers from shoddy construction, but that apparently doesn't (or didn't?) exist in some areas of the country. In my personal opinion, I'm sure bribes have taken place between developers and county officials.

 

[adjusterjack]

You're probably right.

Time to close the thread.