HOUSTON – From uneven walls to bad plumbing jobs, people are sometimes left dealing with bad work or damage from home builders and contractors.
These expensive and frustrating problems are something people often ask Investigator Amy Davis about.
Home builders in Texas are not regulated. So it’s not easy to look for help if you run into issues with your contractor or homebuilder. Charles Moster with Moster Law Firm deals with bad builders and contractors. He shared some tips for people who are in the middle of the building process to look out for.
1. Watch out for promises made after the contract is signed
Moster gives this example of a common way contractors and builders may trick clients.
“So, let’s say you meet Joe Jeffrey. I’m just coming up with the name. And you notice a problem with the roof. It looks like there are problems in construction. You’re a layperson. You don’t really know. So, you bring it to Joe’s attention, and he says, ‘Well, don’t worry about it in an email. We will take care of it.’ Or, if you see a cost overrun and you send out an email, and then Joe gets back to you saying, ‘Well, we will just simply reduce it from the purchase price or the price of the contract. Don’t worry about it.’ Guess what? There’s something called a merger clause.”
Moster explains that a merger clause says even though a contractor tells you something, that person is not legally obligated to do it.
“It’s not admissible in court because you’re stuck in the four corners of the agreement. If it doesn’t give you the language that’s in the email, a court will not even look at it.”
This means anything they said or wrote outside of the contract won’t hold up in court.
2. Know what an “express warranty” means for you during the building process
“The warranties that you have that are called express warranties, that a builder provides, and mean that they’re going to stand behind their work. So, if a wall is collapsing, even if painting is done correctly, but usually substandard problems that you see or water intrusion, you can call your builder,” Moster explained.
Here is what the Federal Trade Commission says about warranties.
3. Look for the words “waive, release & fraud” in any contract you sign
There is a common clause builders may slip in in bold that if you sign it, you are waiving your right to sue them for fraud. If you see this, ask the builder to remove it from the contract. If they don’t, find another builder.
“You don’t necessarily have to go to a lawyer, but you’ll know it’s bad and it will say you’re waiving or releasing your rights to your warranties. It’s in bold language. Now, that may seem like some esoteric term, but it’s not. It means that if something goes fundamentally wrong in your house, they’re not going to stand behind it. So ask yourself, do you want to do business with a company that’s not going to stand behind its work? But if they’re not going to stand behind their work in the contract and it’s their go to the nearest exit door. Yeah, that’s what I always say. Ask them to remove the language.”
4. Screen all builders and contractors
- You’ll want to screen all the builders you are considering. Get three references. Check the BBB website.
- Be extra careful with small builders who may not have the capital to fix your problems if something goes wrong or if you have to sue.
- Moster says the bottom line: Don’t get lost in warranties and claims in the end, the builder is liable for defects.
The Attorney General of Texas has helpful information on how to deal with contractors.
You can watch the full Ask Amy episode with Moster at 11 a.m. Tuesday December 12 on KPRC 2+.
Do you have a question for Amy? Email AskAmy@kprc.com