In February my husband and I contracted with NVR, Inc. T/a Ryan Homes. The Sales Representative went over the available options on a Selection Sheet for our chosen model at that time. We submitted a deposit, and were provided with a Purchase Agreement, Purchase Agreement Addendum, the HOA Manual, a Homebuyers Roadmap, and a Buying a New Home guide.
In March Ryan Home Builders sent us a ratified copy of the Purchase Agreement, and other collateral documents. We placed these items in the Homebuyers Roadmap as directed by Ryan Homes.
As per the Purchase Agreement, we contacted NVR Mortgage Company within 5 days of signing the purchase agreement. At the time of the initial phone call to NVR Mortgage, we provided them with the information they requested to begin the mortgage process. NVR Mortgage Company then set up a consultation meeting with the Loan Officer. We met with the loan office and were informed of the loan program he intended to put us in. We asked at that time about the loan cap. He stated that with his suggested loan program that the cap would be well above what we intended to purchase the home for.
As per the agreement we contacted the necessary sub-contractors within the time allotted by Ryan Home Builders. We had no problems with any of the sub-contractors in making appointments and meetings, with the exception of Guardian Protections Services.
We called Guardian Protection Services to set up a time for a meeting to go over the process of upgraded wiring and services. Within 30 days they faxed a copy of the costs associated with upgrading or buying any of their services. On the cover letter of the fax, it stated that we were to review the information and to contact them for an appointment. It also stated that if select custom additions were chosen, that Ryan Homes gave a one-time opportunity to incorporate the cost of those additions into the monthly mortgage or to pay separately with a minimum 1/3 deposit.
We contacted Mr. (Name Withheld) of the Builder Division of Guardian Protection Services as soon as the fax was received, in order to make an appointment. It was stated that he could meet with us in May * 2003. This dismayed us greatly as we wanted to complete the selection process as soon as possible, and wanted a sooner appointment. Therefore we tried to take further action to push up the appointment date. We asked the Ryan sales representative if there was anything she could do to push up the appointment date. She was very courteous, but stated that she did not have any control over their scheduling process. Her explanation was understandable, so we called Guardian Protection Services directly. Guardian Protection Services stated that (Name Withheld). Was to work with us, and that we would have to wait until he was available for a meeting.
My husband met with the Guardian representative on the date specified by the Guardian representative, May *. At that time the Guardian representative went over the upgraded wiring and services available through Guardian Home Protection Services. My husband selected one extra phone outlet, 4 extra cable outlets, a whole house audio package, a module, and surround sound pre-wire. My husband opted to have the costs of these upgrades rolled-into the mortgage, as per Guardian Protection Services and Ryan Home Builders providing that mortgage roll-in option. My husband signed the agreement as so, which stated he wanted it rolled into the mortgage.
The pre-construction meeting with Ryan Home Builders took place on June *. We met with the Guardian representative prior to the Pre-Drywall meeting with the Ryan Homes Production Superintendent. At that time the Guardian representative did not say that there was a problem with financing, and we knew there would not be a problem with rolling the cost in the mortgage, as we knew we were well below the Loan Cap.
On the bottom of the Guardian Protection Services Addendum to Preferred Builder Program Sales and Monitoring Agreement it states:
By affixing their signature where indicated, the parties agree that this Addendum is made a part of the Agreement as of the date set forth below. Customer and Company also agree that any mortgage roll-in amounts indicated above are subject to the approval of Customers mortgage provider.in the event such approval does not occur, the Customer agrees to pay Company directly for the equipment related to the mortgage roll-in amount or the Customer may elect to delete equipment purchases from this agreement prior to the pre-wire of the Customer's home.
As the purchasers, we have completed all of the duties that were specified by Ryan Homes in the time frame allotted. We have taken all appropriate actions to ensure everything was completed as directed. If the equipment had not been approved through the mortgage company, we would have taken the appropriate measures to ensure we could have it rolled-into the mortgage prior to the settlement. This was not an option as it was never submitted to be rolled-into the mortgage.
We were not given any notice of this prior to the technicians coming out to Power-Up the alarm system. At that time, I spoke with a customer service representative by the name of (Name Withheld) at Guardian Protection Services who claimed that they were not paid for the options. I stated I was not aware of that and that he needed to take this issue up with Ryan Homes. At that time I did not have them Power-Up the system, as I wanted this issue resolved before any other disputes could arise from the situation.
We, the purchasers view the situation as follows:
First, this was as a result of the negligence of the Guardian Protection Services representative and his obligation to ensure all paperwork is submitted in a timely manner to the appropriate people within the company he is employed by and to Ryan Homes. Guardian Protection Services is in breach of their own-contract, because they did not submit the necessary paperwork to Ryan Homes to have it rolled-into the mortgage as presented on their contract.
The Guardian representative signed the contract as a representative of Guardian Protection Services. He was to submit the contract to Ryan Homes as a Mortgage Roll-In. At no time prior to settlement were we told that the necessary paperwork was not turned-in. We were not given the choice to elect to delete the equipment purchase in the agreement prior to the pre-wire at that pre-wire meeting with the Guardian representative due to the option of mortgage roll-in not being accepted, as per their agreement.
Secondly, if it was submitted to Ryan Homes, which apparently it was not, then the addendum should have been processed and sent to the mortgage company to be rolled into the mortgage. We have contacted Ryan Home Builders to tell them that their sub-contractor failed to turn in the necessary paperwork to them in the time allotted. They have stated they would look into the matter, but have not taken any action as of yet to rectify this mistake on the part of their sub-contractor.
As to the first issue, Guardian Protections Services needs to take responsibility in not performing the duties as per the addendum agreement. Guardian Protection Services is in breach of its own contract, in that it did not submit the necessary paperwork to Ryan Home Builders as required for a mortgage roll-in. We signed for purchase as offered on the addendum as a mortgage roll-in, they breached the contract by not submitting the information to Ryan Home Builders or the mortgage company. Because they did not submit the paperwork as required to Ryan Home Builders, they now need to take up the issue of payment with Ryan Home Builders, as we have already purchased the house from Ryan Home Builders in its entirety.
Secondly, Ryan Home Builders needs to take up the issue of not receiving any necessary paperwork from Guardian Home Protection Services with them. The sub-contractors Ryan Home Builders have chosen, and the arrangements and channels of communications Ryan Homes have with their sub-contractors, is an issue that does not involve us as the purchaser. We feel we were duped into basically what amounts to a bait-and-switch, in which we were told were given the option of a mortgage roll-in by their Guardian Protection Services through Ryan Home Builders, but due to the negligence of the sub-contractor, were not.
On September * the house was purchased in entirety from NVR Inc., a Virginia Company.
Guardian Protection Services has informed us that they are prepared to bill us for the full amount of $*. 00, outside of a mortgage roll-in (because it was not submitted by them to the mortgage company or Ryan Home Builders) Mortgage roll-in is not an option now, because after settlement the mortgage was sold by NVR to a third party.
We consider the issue on our part as the purchasers resolved, and feel we are under no obligation to pay anything beyond the purchase price of the home as paid on September *. Guardian Protection Services breached its own contract in that they did not submit the paperwork as required to Ryan Home Builders, at anytime before settlement of the home. Ryan Home Builders has not as of yet taken any concrete action to rectify or penalize their sub-contractor for the negligence that took place.
We would like to know if anyone has been through a similar situation with either party, or if anyone can offer any suggestions. This situation has made the entire process of building and buying this home a complete nightmare. Because of the negligence that took place we are going to be forced to pay out-of-pocket expenses after the closing of this house. I cannot understand how this is allowed to happen. If we knew this was going to be an out-of-pocket expense, that it was not going to be rolled out into the mortgage, we would not have purchased the equipment. They can't take out the equipment out of the home without literally ripping out the walls, because the expense is all in the wiring of the equipment. I have written letters explaining everything to both parties, and have written to the Consumer Protection Division in Maryland, so they have copies of everything sent if this goes to court. What else can I do? Caveat Emptor.
This complaint will be updated if either party takes responsibility for the negligent actions that occurred.
Home Buyer
Frederick, Maryland
U.S.A.
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