Austin Texas Real Estate Blog

There’s a house in Reynoldsburg, Ohio, that’s worth $3 million. It’s been empty for over two years, there’s a large hole in an exterior wall, and the interior is riddled with mold. It originally cost Roman and Jennifer Cosner $219,000 in March of 2005 and was supposed to be their dream house, built to specification of quality materials with a one year warranty. Instead, they got a house full of toxic mold that made them so ill they needed to move out.

The builder, Maronda Homes, promised to fix the problems and pay for their lodging costs. The Cosner’s claim repairs were never made and their lodging never paid for and, in fact, the company treated them with “hatred and ill will.”

Although Maronda ranks fairly high in customer satisfaction and construction quality, it’s been reported that the quality fluctuates from development to development. The Cosner’s house apparently did not pass muster and defects began to appear shortly after they moved in.

The main trouble showed up after a rainstorm sent a cascade of water down the inside of a garage wall and left puddles on the basement floor. Shortly after, it was discovered that one side of the house wasn’t attached properly to the foundation or the other three sides, the wrong windows were installed, and waterproofing and drainage around the foundation was inadequate. Leaks caused by the ill fitting windows coupled with the badly attached south wall encouraged the toxic mold to grow in the basement and in the heating and air-conditioning system.

The judge apparently agreed the situation was an egregious failure of Maronda to provide the promised product and awarded the Cosners $2.2 million in compensation. The jury seconded the judge’s decision by awarding an additional $1million in punitive damages.

When you are looking at a home, make sure you receive full disclosure. If you are a seller, have an inspector give you a full report on everything, even the stuff you didn’t know was in the house. By doing this, both the buyer and the seller avoid the predicament that the Cosners endured.

As with all good things and developments like the green movement, it seems like there’s someone out there ready to take advantage of the technology learning curve and people’s desires to do good. This company was stopped before they could do too much damage, but I personally hope that they get what they deserve for defrauding the environmentally conscious Texas public.

Joe

Excerpt from My Fox Austin.

05/14/2008 — Texas Attorney General Greg Abbott obtained a temporary restraining order and limited asset freeze Monday against Forum Trading, Inc.

The state’s legal enforcement action charges the Austin-based company, which is organized as a multi-level marketing scheme with independent distributors, with marketing energy devices it falsely claims will significantly reduce power consumption, extend the life of household appliances and save consumers money.

“With Texas families focused on energy prices and seeking cost savings, these defendants are promising lower electricity bills but failing to deliver,” Attorney General Abbott said. “Experts who reviewed the defendants’ products discovered no actual savings for well-intentioned purchasers. The Office of the Attorney General will continue to aggressively crack down on scam artists who attempt to illegally profit from Texas families.”

Court documents filed by the state indicate that Forum Trading, Inc. and several affiliated companies, including Xium Corporation and Xedia Technologies Inc., deceptively market and sell small devices that can store electric energy. The defendants falsely claim that the “Xpower Energy Saver,” which they sell for almost $200 per unit, will reduce consumers’ electricity consumption by up to 25 percent, while the “Mega Power Saver,” priced at nearly $300, will result in more than 10 percent savings.

However, engineers who tested the purported energy-saving products at the University of Texas at Austin concluded that the Xpower Energy Saver could produce no more than a 0.06 percent reduction in electric consumption in an average house. The Attorney General’s laboratory expert similarly concluded that the Mega Power Saver could provide, at best, no more than one percent total energy savings. According to the state’s expert, the devices have no effect on the life of household appliances, despite the defendants’ claims that the Xpower Energy Saver allows appliance motors to “run about 10% cooler.

The laboratory testing also revealed that the products are, in reality, ordinary capacitors, which are often used in electronic circuits to store energy or to differentiate between high-frequency and low-frequency signals. Capacitors are regularly used by electricians, and they can be purchased for less than $20.

You can read the whole story at MyFox Austin.

January 26th, 2008 2:31 PM

If this agent did truly withhold information then s/he is getting what they deserve. Truth and honesty are the most important qualities that a fiduciary has to his/her clients.

Many people may feel they overpaid for a home they bought during the housing boom, but one California couple is trying to do something about it. According to the New York Times, Marty Ummel and her husband Vernon, of Carlsbad, are suing their real estate agent, claiming he withheld information that similar homes in the neighborhood were selling for less than the home they eventually bought. Real estate lawyers say the case, which goes to trial on Monday, brings into question the valuation process and could be “the first of many similar cases in which regretful or resentful buyers seek redress from the agents who found them a home and arranged its purchase,” the Times reports. Wed, Jan 23, 2008