Cardel Homes

Initial Business Response / [redacted] (1000, 6, 2015/11/25) */ On November 19, 2015, Cardel sent an email to Mr [redacted] reminding him that there is a signed Purchase and Sale Agreement between the parties which explicitly says the parties agree to resolve any disputations by arbitration Since that is the method we agreed upon that is the method we should use We would be happy to forward to Revdex.com the letter we send to Mr [redacted] on November 19, Initial Consumer Rebuttal / [redacted] (3000, 9, 2015/12/03) */ (The consumer indicated he/she DID NOT accept the response from the business.) By the Cardel contract form, all arbitration is done individually only- it requires a $fee from each and every homeowner who feels they were misled, PLUS any legal fees for attorney representationThere are dozens of unhappy homeowners, each of whom should not have to pay an arbitrator to ask Cardel to honor their promises Final Business Response / [redacted] (4000, 12, 2015/12/17) */ This format is very limiting in terms of handling the complexity of this sort of matterIf folks feel they have a concern, the arbitration process will give everyone an excellent opportunity to explain their particular case Note that Cardel would also be required to pay arbitration fees and legal fees for each homeowner who wished to use that method A very few brief comments: the original letter you sent had about families, not dozens; there were in that letter families who don't live in the detention pond area; you have asked that we return lot premiums when some families never paid a lot premiumMy point, in the foregoing, is simply that there are two sides to this matter

It appears that this house has several unresolved warranty issues Most of these items are cosmetic in nature, and can be quickly rectified We sincerely apologize that these issues have gone unresolved for so long Unfortunately, the customer service representative that was assigned to warranty for this home was in and out on medical leave for some time, and Cardel's management team was unaware that these warranty issues were outstanding It was his responsibility to turn over all unfinished warranty work to the warranty manager, and it appears that he didn't do that in this caseUpon receipt of this complaint, along with an email from this homeowner to management on the same day, we immediately scheduled our warranty manager, [redacted] , to reach out to [redacted] [redacted] was able to connect with them on the phone, and they met in person on May to go over all the unresolved warranty issues in their house At that meeting, all the items were addressed, and Cardel agreed to fix most of the items, and a work date was scheduled Cardel will have most, if not all of the work, completed before the end of May, and we're confident that the [redacted] 's will be happy with their beautiful new home

We bought new and have had our Cardel home for years now but today the 3rd light fixture fell to the ground. When my kids were younger one narrowly missed my son when it fell hitting the desk in his bedroom that he was sitting on and it took a small chunk out of his desk. I called Cardel at the time who passed the buck to Cartwright Lighting you passed the buck back to Cardel with no resolution.About a year later the next light fixture fell and in my daughter's bedroom and dented the hardwood floor we put in. Today, we just had a third lighting fixture fall and put another dent in our hardwood in the hall. ( all 3 originally picked out by us and installed by Cardel at the time of building) We are thankful that our grand daughter was not visiting at the time. No warning ever from Cardel that this might happen, never mind being out 3 light fixtures! Glad no one was hurt but these lights are obviously an accident waiting to happen! The Fullers

The ***’s sent an email to the Solterra sales office on Saturday, 3/28/indicating that they had a 3rd party inspection done on 3/27/They stated they weren’t happy with items in the home and that they would not be attending the orientation walk that was scheduled for the following day (Tuesday, 3/29/16)The fact that they may not have been happy with items in the home is not a reason to not attend this appointmentThe orientation walk is scheduled by Cardel as an opportunity for buyers to inspect their new home and identify any concerns they may haveAt this time 3rd party inspection reports can be reviewed and buyers learn how to use all the working components in the homeThe ***’s email was passed on to Cardel’s sales manager, Sara DieringerShe called the buyers on Monday morning, 3/28/16, to encourage a meeting at the house with all responsible parties to see what could be done to resolve the ***’s concernsThat meeting occurred Tuesday morning, 3/29/with the ***’s, their Realtor, Cardel’s sales manager, Cardel’s construction manager, and Cardel’s warranty representative responsible for the communityAt that time, the 3rd party inspection report was discussed, line by line, and every room of the house was walked with a mind to identify, and address, the ***’s concernsThe majority of the [redacted] concerns involved drywall matters that were cosmetic in nature and two bowed walls that the buyers wanted repairedCardel agreed to remedy every item of concern that the ***’s hadAt the end of that meeting, it seemed that we’d reached resolution on all itemsWe even discussed concerns that the ***’s had regarding potential trash that they thought was buried in a window wellOn that matter, the construction manager offered to have the rock and dirt dug up from the window well to uncover any trash that may have been placed thereTime lines were discussed and the ***’s identified new dates that they were comfortable with for an Orientation Walk and a ClosingThey were informed that all work agreed to would begin that afternoon and the closing coordinator would call them to confirm the new dates agreed toLater that evening, the ***’s sent an email to Pat Hamm, the VP of Land, stating that they wanted to cancel their contract to purchase the home and insisting that they receive a full earnest money refundThat email was again forwarded to the appropriate person, Sara Dieringer, Cardel’s sales managerShe responded to the ***’s in an email on 3/31/telling them that they would be in breach of the terms of the New Home Sales and Purchase Agreement they signed with Cardel Homes on 3/11/15, and, therefore, would not be receiving an earnest money refund of $20,if they proceeded with the cancelationTheir Agreement with Cardel clearly states, in Paragraph – Default, “the buyer is in Default if they fail to perform according to the terms of the Agreement, including the failure or refusal to close”The contract, signed by the ***’s, also states in Paragraph – Default, “in the event of a Default, Cardel is entitled to recover from the buyer, as liquidated damages, 10% of the Total Purchase Price”, or a total of $67,Cardel has to date chosen to forego this penalty, and instead agree on retaining only the $20,earnest money; however, Cardel has not waived the right to enforce the 10% of The Total Purchase Price optionThe contract the ***’s signed, dated 3/11/15, clearly states in Paragraph – Financing, that the buyer is responsible for obtaining their own financingIt also says, “If the current market rate of interest, loan fees or other amounts, have increased by the date of Closing, such increase shall have no effect upon this AgreementBuyer acknowledges that neither the Seller nor any of its agents has made a commitment or agreement to secure a loan, or an interest rate, discount points or any loan fees, for the Buyer.” In addition, Paragraph – Use of Non-preferred Lender, states “Buyer acknowledges that his use of any of Seller’s Preferred Lenders is not required.” The statement the ***’s made that “the lender that is connected to Cardel quoted us ¾ of a percentage point higher over our bank, thus we did not select the in house mortgage broker” and “ in agreeing to a much higher interest rate if we agreed to utilize the Cardel affiliated mortgage broker ” is not accurateCardel Homes has a preferred lender to help simplify the process for our buyers and to insure a smooth transaction; however, we have no business affiliation with the preferred lenderThey are not an in-house mortgage broker as the ***’s stated several times, and Cardel has no financial interest in the lender as the ***’s implied in their complaintAlso, in the contract signed by the ***’s, Paragraph – Use of Non-preferred Lender, it states: “Additionally, if Buyer chooses a Non-Preferred lender, Buyer agrees to increase the Total Deposit by an amount of $5,000, which additional amount is due and payable from Buyer to Seller when this Agreement is signed by the Buyer.” We have been open and upfront with the ***’s since the contract dated 3/11/The Agreement they signed is pretty straight-forward on these mattersCardel had agreed to remedy all of the ***’s concerns with the home and had even agreed to not require them to replace the $5,earnest money deposit that was due as per the Agreement (but which they cancelled)Our intention had been to help them get to closing as easily as possibleWe have been clear in our intentions to resolve all the issues they expressed with the homeRather than working with us to resolve their concerns they insisted on cancelling the Agreement just days before the home was ready to closeThe ***’s did not wish to fulfill their obligations under the Agreement; therefore, Cardel is entitled, at minimum, to retain the earnest money we currently hold

Our warranty and construction employees, in conjunction with our trades and suppliers, have offered reasonable, workmanlike, and fair solutions to the matters that concern the ***'s. We have also consulted with 3rd party industry professionals to ensure that our solutions were within industry standards. However, the ***'s declined our offer on every matter. The ***'s signed a contract agreeing to arbitration if we could not agree on matters related to their home, and at this point, we believe that the only way to resolve these issues is to pursue arbitration

Cardel Homes acknowledges that there are current problems with the hardwood floor that was installed in the ***'s unit; however, per the Home Owner Orientation form that was signed off by the buyers on May 5, 2016, the hardwood floor was in acceptable condition and no comments were noted regarding
the floor It was some time after the ***'s closed on the unit that they made a formal complaint about their floor gappingPer the contract that the ***'s signed with us, dated May 3, 2015, if there is a Construction Defect, Cardel Homes has the right to inspect the defect and repair or remedy the problem Cardel Homes hired a 3rd party inspector to perform a site inspection and analysis of the current conditions concerning the wood floorFrom the inspection, they concluded that gapping was indicative of the low levels of relative humidity in the unit along with the floor being locked in around the perimeter which doesn't allow the floor to expand and contract with changes in the environment It is the homeowner's responsibility to keep the environment with in the range specified by the manufacturer to prevent gapping in the floor Although it was clear from the inspector that most of the damage to the floors was caused by the low humidity levels, Cardel offered the buyers, in good faith, an option to either have the floors repaired at Cardel's expense, or a $5,settlement to the buyer to repair the floors themselves As of Friday, January 20, the ***'s accepted our offer to repair the floors, and Cardel plans to get started right away

Complaint: ***
I am rejecting this response because:Cardel, statement of, "We've offered solutuions to these issues that we feel are fair to both parties, and the ***'s simply don't care for our answers," is far from the truthOnce again, the "band aid approach for a broken leg" is neither fair or acceptableFor example, Cardel's response to our $4,worth of hardwoods that are delaminating due to poor finish and sealing, is to "screen and coat" the hardwoods, which is simply absurdWe have professional recommendations for Harwood floor experts who clearly state that, "a full sand and refinish of the hardwoods is the PROPER and professional way to correct the issue long term." Cardel's cheap fix to screen and coat the floors is merely for maintenance approach rather than correcting the original problem.For example, Cardel's response to our $2,worth of kitchen wall glass tile and backsplash that was incorrectly installed and grouted, is to remove random glass tiles, patch and regrout other areas of uneven jointsWe have professional recommendations from Tile experts who clearly state that, "The glass tile are uneven as they were not installed proficiently or properlyThe grout was hastily set into the jointsThere is not a tool that can simply grind out the grout without damaging the glass tilesThe recommended correction is to replace ALL areas of the tile wall and backsplash."For example, Cardel's response to our porch hand rail that is not securely bolted to the cement, rather welded in one area, is nothing; it "meets code and there will be no fix." We have a professional recommendations that this is not only a safety issue, that given time, the corrosion that has already appeared, will dissolve the "quick fix' welding.In conclusion, Cardel's dismissive attitude and lack of integrity todo the RIGHT thing is not acceptableTell us, how could it be?
Sincerely,
*** ***

Cardel Homes is well aware of the ***'s warranty complaints. We have made offers to repair the legitimate items that the ***'s are concerned about and have fixed a number of items for them through the warranty process. There are a few items that are well within industry
expectations and are simply not defectiveWe've offered solutuions to these issues that we feel are fair to both parties, and the ***'s simply don't care for our answers. The Purchase Agreement that the ***'s signed with us dated February 21, has a provision titled Resolution and ArbitrationIt states that "any controversy or claim that has been brought to the attention of the SELLER or BUYER by the other party and which is not settled by BUYER and SELLER within a reasonable time, shall be settled and final, binding arbitration in accordance with the current Construction Industry Arbitration Rules of the American Arbitration Association." At this point, because we are at an impass with the ***'s on these few issues, we would suggest that binding arbitration is probably the best solution for all parties

Initial Business Response /* (1000, 6, 2015/11/25) */
On November 19, 2015, Cardel sent an email to Mr. [redacted] reminding him that there is a signed Purchase and Sale Agreement between the parties which explicitly says the parties agree to resolve any disputations by arbitration.
Since that is...

the method we agreed upon that is the method we should use.
We would be happy to forward to Revdex.com the letter we send to Mr. [redacted] on November 19, 2015.
Initial Consumer Rebuttal /* (3000, 9, 2015/12/03) */
(The consumer indicated he/she DID NOT accept the response from the business.)
By the Cardel contract form, all arbitration is done individually only- it requires a $750 fee from each and every homeowner who feels they were misled, PLUS any legal fees for attorney representation. There are dozens of unhappy homeowners, each of whom should not have to pay an arbitrator to ask Cardel to honor their promises.
Final Business Response /* (4000, 12, 2015/12/17) */
This format is very limiting in terms of handling the complexity of this sort of matter. If folks feel they have a concern, the arbitration process will give everyone an excellent opportunity to explain their particular case.
Note that Cardel would also be required to pay arbitration fees and legal fees for each homeowner who wished to use that method.
A very few brief comments: the original letter you sent had about 14 families, not dozens; there were in that letter families who don't live in the detention pond area; you have asked that we return lot premiums when some families never paid a lot premium. My point, in the foregoing, is simply that there are two sides to this matter.

It appears that this house has several unresolved warranty issues.  Most of these items are cosmetic in nature, and can be quickly rectified.  We sincerely apologize that these issues have gone unresolved for so long.  Unfortunately, the customer service representative that...

was assigned to warranty for this home was in and out on medical leave for some time, and Cardel's management team was unaware that these warranty issues were outstanding.  It was his responsibility to turn over all unfinished warranty work to the warranty manager, and it appears that he didn't do that in this case. Upon receipt of this complaint, along with an email from this homeowner to management on the same day, we immediately scheduled our warranty manager, [redacted], to reach out to [redacted].  [redacted] was able to connect with them on the phone, and they met in person on May 10 to go over all the unresolved warranty issues in their house.  At that meeting, all the items were addressed, and Cardel agreed to fix most of the items, and a work date was scheduled.  Cardel will have most, if not all of the work, completed before the end of May, and we're confident that the [redacted]'s will be happy with their beautiful new home.

The [redacted]’s sent an email to the Solterra sales office on Saturday, 3/28/16 indicating that they had a 3rd party inspection done on 3/27/16. They stated they weren’t happy with items in the home and that they would not be attending the orientation walk that was scheduled for the following day...

(Tuesday, 3/29/16). The fact that they may not have been happy with items in the home is not a reason to not attend this appointment. The orientation walk is scheduled by Cardel as an opportunity for buyers to inspect their new home and identify any concerns they may have. At this time 3rd party inspection reports can be reviewed and buyers learn how to use all the working components in the home. The [redacted]’s email was passed on to Cardel’s sales manager, Sara Dieringer. She called the buyers on Monday morning, 3/28/16, to encourage a meeting at the house with all responsible parties to see what could be done to resolve the [redacted]’s concerns. That meeting occurred Tuesday morning, 3/29/16 with the [redacted]’s, their Realtor, Cardel’s sales manager, Cardel’s construction manager, and Cardel’s warranty representative responsible for the community. At that time, the 3rd party inspection report was discussed, line by line, and every room of the house was walked with a mind to identify, and address, the [redacted]’s concerns. The majority of the [redacted] concerns involved drywall matters that were cosmetic in nature and two bowed walls that the buyers wanted repaired. Cardel agreed to remedy every item of concern that the [redacted]’s had. At the end of that meeting, it seemed that we’d reached resolution on all items. We even discussed concerns that the [redacted]’s had regarding potential trash that they thought was buried in a window well. On that matter, the construction manager offered to have the rock and dirt dug up from the window well to uncover any trash that may have been placed there. Time lines were discussed and the [redacted]’s identified new dates that they were comfortable with for an Orientation Walk and a Closing. They were informed that all work agreed to would begin that afternoon and the closing coordinator would call them to confirm the new dates agreed to. Later that evening, the [redacted]’s sent an email to Pat Hamm, the VP of Land, stating that they wanted to cancel their contract to purchase the home and insisting that they receive a full earnest money refund. That email was again forwarded to the appropriate person, Sara Dieringer, Cardel’s sales manager. She responded to the [redacted]’s in an email on 3/31/16 telling them that they would be in breach of the terms of the New Home Sales and Purchase Agreement they signed with Cardel Homes on 3/11/15, and, therefore, would not be receiving an earnest money refund of $20,000 if they proceeded with the cancelation. Their Agreement with Cardel clearly states, in Paragraph 22 – Default, “the buyer is in Default if they fail to perform according to the terms of the Agreement, including the failure or refusal to close”. The contract, signed by the [redacted]’s, also states in Paragraph 22 – Default, “in the event of a Default, Cardel is entitled to recover from the buyer, as liquidated damages, 10% of the Total Purchase Price”, or a total of $67,793. Cardel has to date chosen to forego this penalty, and instead agree on retaining only the $20,000 earnest money; however, Cardel has not waived the right to enforce the 10% of The Total Purchase Price option. The contract the [redacted]’s signed, dated 3/11/15, clearly states in Paragraph 25 – Financing, that the buyer is responsible for obtaining their own financing. It also says, “If the current market rate of interest, loan fees or other amounts, have increased by the date of Closing, such increase shall have no effect upon this Agreement. Buyer acknowledges that neither the Seller nor any of its agents has made a commitment or agreement to secure a loan, or an interest rate, discount points or any loan fees, for the Buyer.” In addition, Paragraph 26 – Use of Non-preferred Lender, states “Buyer acknowledges that his use of any of Seller’s Preferred Lenders is not required.” The statement the [redacted]’s made that “the lender that is connected to Cardel quoted us ¾ of a percentage point higher over our bank, thus we did not select the in house mortgage broker” and “…in agreeing to a much higher interest rate if we agreed to utilize the Cardel affiliated mortgage broker…” is not accurate. Cardel Homes has a preferred lender to help simplify the process for our buyers and to insure a smooth transaction; however, we have no business affiliation with the preferred lender. They are not an in-house mortgage broker as the [redacted]’s stated several times, and Cardel has no financial interest in the lender as the [redacted]’s implied in their complaint. Also, in the contract signed by the [redacted]’s, Paragraph 26 – Use of Non-preferred Lender, it states: “Additionally, if Buyer chooses a Non-Preferred lender, Buyer agrees to increase the Total Deposit by an amount of $5,000, which additional amount is due and payable from Buyer to Seller when this Agreement is signed by the Buyer.” We have been open and upfront with the [redacted]’s since the contract dated 3/11/15. The Agreement they signed is pretty straight-forward on these matters. Cardel had agreed to remedy all of the [redacted]’s concerns with the home and had even agreed to not require them to replace the $5,000 earnest money deposit that was due as per the Agreement (but which they cancelled). Our intention had been to help them get to closing as easily as possible. We have been clear in our intentions to resolve all the issues they expressed with the home. Rather than working with us to resolve their concerns they insisted on cancelling the Agreement just days before the home was ready to close. The [redacted]’s did not wish to fulfill their obligations under the Agreement; therefore, Cardel is entitled, at minimum, to retain the earnest money we currently hold.