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Saturday, October 31
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Fails & scandals

Georgia owner says her 2017 Meritage home is sinking and needs $534,000 in repairs; builder offered $27,000

Yalanda Williams says the house she bought new from Meritage Homes in Douglasville, Georgia, in 2017 is sinking in places and needs $534,000 in repairs. Meritage offered close to $27,000, she told WSB-TV, and now won't deal with her directly while she has no lawyer.

Williams told Atlanta's WSB-TV that foundation problems showed up about a year after she moved in, and that several engineers have since found structural defects that are making parts of the house sink. She said a Douglas County inspection report from July lists nail pops, sagging drywall, split studs and cracks in the foundation. In the basement, she said, metal bars now poke through the concrete wall.

Meritage did some repairs under the home warranty, Williams said, but in her account the damage has kept getting worse for three years. Legal documents the station reviewed put the needed repairs at more than $500,000. She puts the figure at $534,000 and says Meritage's offer was close to $27,000.

Williams said she has spent $72,000 in four years, largely from her savings, on structural engineers and on dealing with the defects, and can no longer pay a lawyer. She sued first; the lawsuit was thrown out and the dispute went to arbitration. In an email dated Oct. 15 that WSB-TV saw, Meritage said it would not negotiate with her directly while she represents herself. Without $250 an hour for counsel, she told the station, she cannot get in front of an arbitrator.

Meritage Homes had not answered the station's questions about her claims or about its refusal to deal with her directly when the report ran. The report does not say what the engineers believe is causing the movement.

Why it matters: An arbitration clause can make a defect claim too expensive for a buyer to pursue alone. Builders should expect warranty patches that don't stop settlement to come back as six-figure claims; buyers should read the dispute terms before closing.

Sources

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