Homeowner Frustrated With Builder

Nov 26 2007

The House Detective, by Barry Stone, Certified Building Inspector

Dear Barry: We had a large custom home built by a contractor about three years ago. Since then, we’ve had three on-going problems. First, the bullnose wall corners throughout the house continue to separate from the drywall, even around the windows. The drywall subcontractor has been here repeatedly. But he only fixes the places where separation has become visible, and the places he fixes look obviously patched. Second, the stucco finish on the outside of the house keeps chipping and crumbling off. We pointed this out to the contractor when the house was new. He said this was typical for new stucco. But the stucco finish has continued to crack, crumble, and separate ever since. And third, there is a terrible smell coming from the septic tank since we moved in. When we first complained, the subcontractor repaired a broken underground pipe, but this has not eliminated the awful smell. The builder said it would go away but it has continued for three years. With each of these issues, the builder just makes excuses. He says that his liability expired after one year, and he never admits that these are serious problems. I am totally frustrated and hope that you can give me some direction. Please help. Ginny

Dear Ginny: The defects you describe are totally unacceptable and are not normal for a properly constructed home; especially a custom home. A contractor who excuses defects of this kind is unworthy of trust or respect.

If the bullnose wall corners are separating from the drywall, then they were not adequately nailed when the home was built. Proper repair means renailing every bullnose corner in the house, followed by patching and retexturing by a qualified craftsman. If done by a competent drywall finisher, the repairs should not be visibly discernible.

If the stucco had been properly applied, delamination of the finish coat would not be occurring. The cracking and crumbling you describe indicate substandard workmanship, and the builder is responsible for that defect. What’s more, his liability did not end after one year because the defects were reported to him while the one year warranty was still in effect.

The sewer gas smell from your septic system indicates a significant health safety violation that needs to be addressed fully and immediately. It is not a matter to be dismissed with lame excuses. Some aspect of the septic system is defective and needs to be corrected.

Here are my recommendations:

  1. Hire an experienced home inspector to thoroughly evaluate the property. In addition to the three issues you have listed, a qualified inspector will disclose construction defects you have not yet discovered. A detailed home inspection report will document all apparent construction defects in a way that will provide leverage in dealing with the builder.
  2. Hire individual specialty contractors to evaluate the problems you have listed: a drywall contractor to assess the bullnose problem; a stucco contractor to evaluate the stucco problem; and a septic contractor to inspect and evaluate the problem with sewer gases. All of these contractors should provide written assessments of these issues and bids for proposed repairs.
  3. Get some legal advice from an attorney who specializes in construction defect law.

In the final analysis, you don’t want the builder to repair the construction defects because you can no longer invest confidence in the integrity of his work. Instead, you want him to pay the contractors you hire to make proper repairs.

The House Detective is distributed by 1000WattConsulting. Do not republish without written consent. To purchase reprint rights please contact marc@1000wattconsulting.com

Questions regarding home inspection please email Barry Stone at questions@housedetective.com

11 Comments

  1. This builder RW Hertel is nothing more than a con man and fraud. he refused to allow his New homes to be inspected by anyone. When you buy his home and move in, the first rains come and it leaks and leaks and walls are warped, foundation coming apart, toxic mold started growing etc.. then we are told the State investigated and found all 100% of his homes in Rancho Obipo projected inspected are in fact built to fail and defective. So what does the builder do ? Sues the buyers who filed formal complaints to shut them up.

  2. Hello Martha,
    I’m totally on board with you. Several years ago, a lady who was buying a home in that subdivision was unable to arrange a pre-purchase home inspection with me because Hertel refused to allow me on the property. After the close of escrow, I inspected the home and discovered a list of defects, including leaky windows. I recommended a mold inspection of the wall cavities, and that inspection revealed extensive mold infection behind the drywall. Those inspections marked the beginning of the revelations about the substandard conditions in that subdivision.

    Any builder who refuses the admittance of a home inspector is not ethical and probably has something to hide. That refusal should be a red flag to every buyer.

    Barry Stone

  3. I volunteer for a consumer org that arose because of problems with new home construction, (hadd.com). Leaky windows are a very common complaint, and often it’s because the drainage plane wasn’t properly installed. Complete omission of house wrap and window flashing are too common. I recommend home buyers have their own experts inspect during construction, when serious mistakes like this and others can be covered up in a matter of hours. Any builder who won’t allow the buyer to have inspections is one to avoid, in my opinion. A construction defect case can ruin you financially.

    Regarding houses, consumers have very little consumer protection. Thanks to arbitration clauses, home buyers often cannot use the courts, meaning disputes are forced into private and often biased procedures. This often works out badly for the homeowner, and it also hides complaints so others can’t avoid that builder as easily.

  4. Thank you for the information on HADD, I found Hertel is listed their too as a bad builder. The windows not only leaked but so does the area around all the doors and under the eves from the roofs as well. I has an independent insurance inspector do a claim, they in turn hired a P.E. Professional Engineer who also determined the Hertel homes are so defective he is recommending to the insurance company the home be torn down. Apparently RW Hertel & Sons, Inc. can NOT build a home correctly. I learned down in San Luis Obispo, CA they have the worst of it in the Rancho Obispo Project that Hertel had to re-do all the roofs yet they still leak and are now growing Mold in many of the homes. this is one very lousy cheap builder. The bonding company said he has so many claims there is not enough money in the bond to pay for all the claims and damages so we are now hiring a Law Firm to bring suit, one more of the many we are now learning Hertel has against them for Defective Home building and Toxic Mold.

  5. I live in a Hertel home and it is perfectly fine! In fact it is is built very well. I am a realist and realize that homes are not perfect how can they be? There will always be problems with new homes, little bugs to work out. Jennifer what development do you live in? Maybe we are neighbors. I can give you my contact info for the person I dealt with @ RW HERTEL. She was very nice and helpful.

  6. Robert:
    I’ve observed that the quality of a particular subdivision often depends on who the developer hired as construction supervisor. This is why some developments by a particular company are of much higher or lower quality than others.

    By the way, the subdivision that was addressed in the article is located in San Luis Obispo, CA.

    Barry

  7. I too have lived in a Hertel home and had so many problems i was forced to tell the landlord who then told me NOT to tell anyone and she would re-rent it to a student. She admitted Hertel never did fix the problems but she was only interested in making money not getting the problems fixed. Guess what since it had so much mold Robert Fowler of RW Hertel and Sons had to buy it back. It is 1771 Singletree Ct. San Luis Obispo, it is called the RANCHO OBISPO Hertel development. Then I learned the State Investigators and CSLB inspected all the home in that project and ALL 100 % were defective and Hertel was ordered to re-place the roofs and fix it to code still three years later legal action is still going on against Hertel he is a lying cheating builder.

  8. Barry, Thank you for your response! I am very familiar with the development in San Luis Obispo. In fact I live in that very development! I am all to familiar with the “problems” that have plagued our development. However it was not the problems that one might think. Yes a couple of homes had issues…however our biggest problem was and still is a neighbor!! SCOTT T.BARNES.(Google him) He was the owner of the home on Singletree whom sold his house back to Mr. Fowler(of RW Hertel) at a HEFTY PROFIT. Then proceeded to lie to the newspapers and anyone else who would listen, about how defective the homes were. He caused my home value to plummet! Now he is suing the builder for an insane amount of something like 12 Million dollars!! Why?!?!? He made his money…my house is worth nothing because of him! AND he has managed to manipulate the situation so that MY HOA fees are paying for his lawyers!!! He is the CON MAN, Mr. Stone. Hertel came in and fixed to roofs, even on homes that didn’t need it & they did it very quickly and efficently. Yet this man continues to beat this issue to death! He DOESN”T EVEN LIVE HERE ANYMORE! He posts under many identities, but his underlying message is always the same. Don’t believe his nonsense!

  9. Interesting post, only problem is (Robert) your facts are FALSE, first of all Hertel bought back a home that was inspected by barry Stone 1771/1769 Singletree Ct., once owned by my former co-worker Jane Morton. Hertel bought it under the Hertel VP’s name of Robert JS Fowler. So you really should fact check it is all on the public county records. As was posted by Barry Stone he was refused to inspect the homes by Hertel that says it all. As for the legal stuff i too went to the court house it was RW Hertel who sued several Rancho Obispo Home owners and threatened others who exposed his defective homes. hertel has sued for over $20 Million so Robert before you spew lies do a fact check. Oh by the way the State CSLB Ordered Hertel to replace the roofs or loose his license. I will reward in public any one who can disprove any of this. The Many suits and CSLB records are all public.

  10. I see that this home on 1771/1769 Singletree Ct. is once again for sell by Coldwell Banker and Robert JS Fowler who is Hertel’s VP and Partner in crime who had to buy this shoddy home back from jane Morton is now trying to sell it for $100K less that he had to buy it back for due to the many liens and massive lawsuits and Judgments he is currently facing.

    Word on the street is he is going to Prison thus trying to sell all his crap and pay the fine.

  11. I read a story that Builder and Developer RW Hertel & Sons with Robert Fowler have been cited and are facing jail and a $250,000.00 fine for destroying land in Patterson, CA Diablo Grande Development which in now in Bankruptcy as well. The National HADD did a story 7-11-08 as well as the Modesto Bee, to make things worse they ( Hertel ) are in default on over $21,000,000.00 in loans in Atatscadero Ventures,LLC and again the State is revoking there license for failure to pay a final court ordered fine and the CSLB is back investigating them for defects in Rancho Obispo AGAIN !!

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Barry Stone

Barry StoneKnown today as "America's House Detective," Barry advises readers from coast to coast, providing honest clarity, fresh wit, consumer protection, and even-handed fairness in his responses to real-left real estate questions. Read more.

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