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« National New Home Builders Campaign Contributions (Q1 & Q2 ’07) | Main | A House Divided part 1 & 2; Americans Rendered Helpless by New Home Building Industry – You or Your Family Could Be Next »

September 14, 2007

Protecting Homeowners from Unscrupulous Attorneys and Inspectors

In Nevada, a homeowner has two options, they may either file a claim with the Nevada State Contractors Board at no charge or they may contact a lawyer and file a Chapter 40.  Chapter 40 was written to protect homeowners with homes that have true defects.  A Chapter 40 done by a reputable attorney should only cost the homeowner $40; all other costs are recouped in court from the builder.  An attorney that is implementing Chapter 40 in this way, which is the way the legislature intended, will NOT take a case they cannot win because they will not be paid.
 
Unfortunately, some attorneys and inspectors have found loopholes in the Chapter 40 contracts that allow them to charge excessive fees for inspections and cancellations. For example,one local attorney will agree to file a Chapter 40 on the homeowner's behalf, but if the homeowner gets the builder to make the repair, decides to pay out of pocket for the repair, or finds out they can get the same services for free from the Nevada State Contractors Board, the homeowner is charged $6,000 to cancel the Chapter 40 with the attorney.
 
Senior citizens can be targets of inspectors who tell homeowners their houses have defects that do not exist and get them to subsequently sign contracts with attorneys.  These attorneys don't care if the houses are really defective because they make their money off the cancellation fee, inspection fee, and any other fee they want to charge.  These attorneys are taking advantage of the Chapter 40  law that was designed to protect homeowners. Chapter 40 is written in such a way that a reputable attorney will charge a $40 upfront fee and all other costs are recouped from the builder.  If an attorney is correctly utilizing Chapter 40 to the homeowner's advantage, the homeowner will only be charged $40. 
 
Las Vegas Lemonade's official statement is:  "We encourage all homeowners to contact their builder regarding problems/defects by certified mail.  If the builder will not make a repair, we encourage all homeowners to utilize the FREE services of the Nevada State Contractors Board firstThe Board will tell a homeowner for FREE if they have true construction defects.  If the Board does not rule in the homeowner's favor, contact the local media and Las Vegas Lemonade."
 
There are several construction defect attorneys in the  Las Vegas area with excellent reputations.  These attorneys will thoroughly inspect your home.  If problems/defects are NOT covered by the Nevada law, these reputable attorneys will NOT take your case because they know you cannot win.  They will advise you to pay out of pocket due to owner negligence and/or the defect is beyond the statue of limitations.  Homeowners may be advised to contact the Nevada State Contractors Board for the FREE services of the Real Estate Recovery FundFurther, the best construction defect lawyers in town have way too much business and will tell homeowners upfront that the Nevada State Contractors Board will help them for free; and they may get their house repaired more quickly utilizing the Board instead of a lawsuit.  Lawsuits in Nevada generally take 3 years just to be heard in court for the first time.

Redflags for homeowners to watch out for when selecting an attorney:

The attorney has his own inspector. The attorney discourages the homeowner from using the Nevada State Contractors Board.  They may say the Nevada State Contractors Board does not exist, will not help them, and/or is dishonest and always sides with the builder. The attorney says the Nevada State Contractors Board charges a fee. The homeowner is charged more than $40 for a Chapter 40. The homeowner is asked to pay out of pocket for a home inspection, mold testing, or other services.  If an attorney knows you have a true construction defect and knows the case can be won, the attorney will recoup all of these costs in court. If you are charged excessive upfront fees, an disreputable attorney has filed a Chapter 40 they know they can't win and they are recouping their costs upfront because they know there will be no payment from the builder when it gets to court. Excessive cancellation fees.
An attorney agrees to file a Chapter 40 on a homeowner's behalf without coming to the house to physically inspect it.  If an attorney is going to take a case for $40, is planning on winning and thus recouping all other fees in court, shouldn't he want to actually see and inspect the property for himself??

Brought to you by,


Robin Vircsik
Founder, Las Vegas Lemonade
We Protect Dreams
 
Know someone with a visible mold problem? Las Vegas Lemonade can now do air sampling at NO CHARGE to needy homeowners.

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Chapter 40 is a law under the Nevada Revised Statutes that specifically addresses construction defects and related claims in that state. It has resulted in a dramatic change in Nevada CD cases and is similar in some ways to California Senate Bill 800. ... [Read More]

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