For one Indiana consumer, doing business with one of Indiana’s largest custom home builders was an absolute nightmare. At the conclusion of the construction process, the builder, Hallmark Homes, Inc., persuaded her to sign a “zero punch list” based on the builder’s promise to remediate all problems under the builder’s “bumper to bumper home warranty”. Then when she asked the builder to make good on their promise, the builder told her those issues weren’t covered under the warranty.
Among the issues Hallmark refused to remediate was a perpetually wet crawlspace that lead to a massive breakout of mold, and warped vinyl siding. Adding to her frustration was the realization that she had signed a contract drafted by the builder that required her to use the builder’s pre-selected arbitrator to arbitrate the dispute. The contract and home warranty were perfectly legal documents designed to essentially protect the builder at every turn. That’s when she hired a construction attorney and began the arduous task of turning the tables on her builder. Shari Obermeyer stated, “
- How did you come to select this builder?
- What did you do to investigate the builder prior to signing a contract with them?
- What did your attorney do that turned this thing around for you?
- Did you get a good result in your arbitration award?
- What advise would you give someone who was preparing to hire a builder to build their new home?
Indianapolis attorney, Rob McNevin, a partner with Kreider McNevin Schiff, LLP, said there are a number of things you should know before contracting with a builder. Among the most important things a consumer should know are:
- Hire a real estate or construction attorney to look over the contract before you sign it.
- Don’t depend on the warranty to address pre-closing issues. Force the seller to complete all issues prior to closing, while you can rely on contract principals to enforce your rights.
