What happens when a New Home Buyer purchases a home that has been involved in Chapter 40 (CD) litigation?
It’s a question that remains unanswered. With over 5,000 Chapter 40 lawsuits filed in Northern Nevada since the current law was enacted in 1995, there are thousands of homes that have undergone or are currently in litigation as a result of construction defect lawsuits.
Who is responsible for notifying potential homebuyers of the lawsuits, the alleged defects and/or the settlements that were given?
House Fax Review (HFR) is a tool for Contractors, Realtors and Consumers. It has been designed by contractors to help provide vital information regarding litigation actions related to a specific ADDRESS or PERSON. Users will have access to the claims made by plaintiffs information gathered from multiple sources, regarding Construction Defect (CD) individuals have made in the past, or in which they might be participating.
It’s easy to use, and works in several ways:
1- A Builder or Subcontractor can anonymously deliver their CD data for each address where they have received a notice. Each individual submittal is added to the current database creating a center of knowledge for users. (The site is free to use for those providing data.)
2- The use of HFR allows buyers to search any properties they are interested in purchasing. If we have the information, they are able to reduce their risk of buying a home with unresolved Construction Defect issues and costly problems.
Some sellers fail to disclose properly, or even at all. To help Realtors in their quest to properly disclose, they can search by address and name to determine if the homes they choose to represent have participated in construction defect litigation. If we have the information, you can too!
“The Construction Defect issue is huge all on it’s own. Despite my frustration with the issue, my growing concern is the number of homes that have been served notices, received compensation, yet the homes weren’t repaired. With that said, I saw a need to make this information available to the general public.” stated Peter Lissner.
Lissner goes on to explain. “I’ve had homeowners go through the entire Construction Defect process; from the knock (6 times) on their door by a legal representative to the receiving of financial compensation. Often attorneys are awarded compensation for the clients they represent but rarely is enough money awarded to complete the repairs. In most cases owners choose to keep the money and not repair the defect.” As a result, these homes are coming back onto the market with affirmed Construction Defects and no repairs having been made. The question remains, who is going to let the new homeowner know about the issue? Shouldn’t there be a process in place for potential new home buyers to be aware of these pitfalls? Disclosure laws are not working and don’t seem to provide any real consequences.
Enter House Fax Review.
Users can search by ADDRESS to see if a home has undergone a construction defect issue. When a search of an address is conducted and a defect has been filed, it is flagged. The user can request a report of the defect for a minimal fee. “It is a tool that can provide peace of mind for the buyer and the REALTOR,” states Barbie Marcoe, REALTOR®, Chase International. “As a REALTOR, I am very much aware of construction defect, as I used to work for a builder.”
Although in its infancy, House Fax Review is growing its database of entries. With more than 1,500 homes listed in the database, Lissner expects the number to continue to rise. As more and more contractors, law firms and insurance companies begin to provide their information, the site will become a greater resource for everyone. “I am very supportive of House Fax Review, “ says Lynn Crosswhite, owner of Meridian Concrete. “Not only does it create awareness within our industry as to the number of frivolous lawsuits, but most importantly it involves two segments that need to understand construction defect; Homebuyers and REALTORS®”.
Creating awareness is the main goal of House Fax Review. “I just learned about this site and I think it is sorely needed, “ says Sue Cavallero, of Cavallero Heating & Air. “If more of the public was aware of the frivolity and unfair practices generated by these suits, we could create more support outside of the building industry. We need that support.”
House Fax Review is evolving every day according to Lissner. “This is a long term project that has grown and changed since inception.” If all goes well, our plan is to cover Nevada and then move on Nationally.”
For more information on House Fax Review, visit their website at www.housefaxreview.com.