Expert: John Hendricks - 10/17/2007

Question
Nearly 3 years ago, I purchased a just built condo unit from a law firm.  I was the first resident of that unit and was very excited not just in purchasing my first home, but a brand new one.  

About a year passed without incident.  I kept everything in tip top shape, being especially cautious since everything was so new.   

That was when the first rain storm hit my neighborhood, causing an immense leak in the bedroom area.  Since I did not leave my windows or doors open, nor damage any other part of my condo, I could only say that leak was there from before I ever moved in.  I just didn't know it at the time because the imperceptible leaks had been concealed so well when I first looked at the bare rooms.

It turned out that some other condo owners in my building had the same problem, complaining about leaks that occurred during heavy storms.  After much fussing, the law firm that sold us our units came right out and said what happened: that the builders they hired to make our condominium had used shortcuts and made a faulty structure and some of the rooms would be affected.  Unfortunately the original builders went bankrupt soon after they built our building, so going after them would seem to be futile.  

In the meantime, to make amends, the firm said they would pay another company to come and do the necessary repairs to the leaks the other builders had left.  Unfortunately, this is little more than just pasting band-aids on; there's no guarantee that anything will actually be "fixed".  What has happened for the past year is that the repairmen come in when I say another my place has leaked.  They do some work on the condo.  Some weeks go by where I think everything is okay.  Then another storm hits me, and the place fills with water again.

After about the fourth attempt by the repair people, I'm guessing this is really just trial and error, where I've been made an unwilling test subject.  If anyone really knew what the problem was, why not get it right the first time?  It has been over a year since I reported my first leak (a MAJOR problem, I stressed to the condo association president).  The carpet that was damaged from that first leak still has not been replaced because, according to the repairmen, they can't replace it until they're absolutely sure it won't leak again.  But since it's clear they don't know themselves the source of the leak, who knows when this will ever happen?

I still feel as if my place can fill up with water anytime, even if my carpet were to be restored.  I feel especially livid since none of this is my fault or negligence; all I did was move in.  What really gets me is that a lot of time had passed since I first moved in where I had no problems at all, which leaves just enough time for the firm to escape the "probationary period" where the home seller still has accountability for the home he sold.

I suppose it is nice for the law firm to keep paying the repairmen to fix our condo units, but in essence, it's really not doing much good.  They keep saying they're doing the best they can, but their best is clearly not good enough.  I'm really not interested in making money from anyone or that they should redo my place so that it's better than before; I just want the same new functioning unit that I originally paid for!

I get the vibe that they're doing this because it's "the nice thing to do", when in reality my gut tells me they should feel obligated to make amends because they had the nerve to sell us damaged goods.  

I plan on talking to the law firm next week.  My question is this: what clout or leverage, legal or otherwise, do I the home owner have when trying to talk to the seller about this problem--besides just plain human decency (which sadly hasn't been enough) --something that can expedite a solution, ?  I appreciate your help.

Answer
Dear Augusto;

Thank you for your question. First I would like to apologize for taking a couple of days to get back to you. I am currently in Mexico on a trip and have not had the chance to answer my emails like I should have.

It’s unfortunate that you have had as many problems with the condominium as you have had. And what complicates matters, the contractor is no longer in business due to a bankruptcy. There are a few things that I would recommend you to do under the circumstances.

1. This seems like it is an issue for the entire complex, especially with the potential for further problems in the future for not just you but all owners in the complex. I assume you have a homeowners association with a Board of Directors. Since this situation affects the entire complex from the repairs, potential health and safety issues, to the overall effect on your resale values due to poor workmanship, I would think that the Board of Directors should take charge as a group. Your Board of Directors should set an appointment with the best real estate attorney in your city to initiate a plan to address the problems confronting your individual unit and the complex as a whole. In California where I practice real estate, there are companies that continuously inspect condominium projects for a period of time to report structural problems, plus health and safety issues on behalf of the HOA. If there were findings that needed attention, it would be the HOA’s responsibility to employ legal services to help resolve the problems. If they cannot resolve outstanding issues involving the contractor, the only recourse is usually a lawsuit.
2. You may want to contact the licensing board of contractors in the state that you reside to find out what your rights are as a home owner in resolving issues. You may get some helpful information to help resolve the problem. Depending on the circumstances you may be able to wage a complaint against the contractor where the licensing board would get involved in your case. You may want to contact the Better Business Bureau to wage a complaint against the contractor and law firm involved in your purchase.
3. I would also keep detailed records of all your calls including people you had conversations with, and do not hesitate to keep detailed records and pictures of the problems that have occurred. These conversations and detailed records would include the HOA and officers and the results of your conversations.
4. If you don’t get satisfaction from any of the parties mentioned, you may want to contact a real estate attorney to check on all your options as a property owner. In fact, since I am just a Realtor in the State of California I am not familiar with the laws and regulations of the state and local governments where you reside. I would highly recommend you contact your real estate attorney immediately to simply make the attorney aware of the situation, to get invaluable information that will help you personally plan for your recourse if necessary in the future. This really seems like it will be a legal issue, so don’t hesitate to pursue this problem with the energy needed to protect what I assume is one of your most valuable assets.  

I hope this has helped a little and good luck in getting this resolved quickly.

Warmest Regards;
John Hendricks