This is a formal complaint of consumer fraud and consumer theft against the following businesses: Prescott Designer Homes and (Prescott Designer Homes a direct representative for) Lindal Cedar Homes
On June 16 I wrote a $5000.00 check to Prescott Designer Homes for the design of our dream home in Prescott, Az. I had taken the Casa Islena plans and modified them to match our dreams. For the next several months we worked back and forth to set the plans.
November 26 I received a letter from Prescott Designer Homes pressuring for a signed purchase and sales agreement and $62,666.55, even though we did not have a good set of drawings or materials list. I received another letter dated December 5 stating all corrections had been made to the plans, (of which I did not and do not have a good copy). The permitting process and the competitive bids, if we start, right now, with the signed purchase and sales agreement and $62666.55, would take to the middle of March, with the home package arriving on my lot, mid April. Any changes necessary could be made after the purchase and sales agreement is signed and funds were received. That to receive any discounts I had to sign the purchase and sales agreement NOW.
With the above pressure and a desire to get started I was coerced into signing the sales agreement, writing out a check for $62,666.55 and PDH started the bidding process.
PDH (Prescott Designer Homes) recommended two general contractors. Not including the land, one bid came in at $1,043, 187.00 and the second bid at $1,313, 899.00 a rather shocking spread of $270,712.00.
PDH recommended I consider the lower bid. I then independently, discovered that the low bidder (Artistic Remolding) was licensed only to remodel not build a new home as a contractor in Arizona, thus he would be uninsured in addition. This recommendation could have had disastrous results.
IndyMac Bank, my proposed lender, then conferred with PDH on a suitable appraiser. The man PDH recommended appraised the land and building at $901,000.00, this against a house that was to cost me $1,300, 000 to build, not including the land with an appraisal for $300,000.00. The deal looked dead.
Gary Mavis of PDH then assured me and IndyMac Bank that he would recommend another appraiser at my expense who was certified for deals over one million and thus Phil Edwards was retained to do the job. Mr. Edwards and PDH assured us that the appraisal would be in hand no later than March 29. Over a month past that date and after several phone calls from the bank to PDH all confidence was lost by both the bank and the undersigned.
As a result of all of the forgoing I have lost my financing and now have no choice but to put off my building plans until my Colorado home is sold.
I have received bad advice from PDH / Lindal Cedar Homes (LCH) at a great cost to me, both emotionally and financially. I have NEVER received an acceptable set of plans, I have received an appraisal from PDH's recommended appraisers that has jeopardized my financing arrangements and I have spent considerable time with unlicensed contractors recommended by PDH, direct agent for Lindal Cedar Homes.
At this point in time, due to disruption of financing, I was in jeopardy of forfeiting a $40,000.00 land deposit. I very strongly feel that I have been put in this tenuous position as a direct result of Prescott Designer Homes / Lindal Cedar Homes.
As of today, I have not signed off on a set of plans as they are not correct. No material has been ordered; no material has been shipped or delivered. PDH's suggested solution was to return just $31,000.00 and to keep $36,666.55 (of my MATERIAL deposit) for a plan that is still not correct, is incomplete and unusable. This offer is an insult.
Now I'm told they finally got the appraisal May 6th at $1,035, 000.00 for the land and home. This is still way off the mark, too low and too late to save this deal.
I am willing to settle this dispute upon return to me of all funds except the $5,000.00 design fee provided funds are returned immediately so that I can minimize damages, complete the land deal and not lose the land deposit.
May 20 I received a letter from Lindal Cedar Homes, (Lou Carlascio, VP Sales) stating Lindal was charging $12,925.09, no invoice presented, for the plans and engineering of the proposed home. (This charge was to modify an existing set of plans, The Casa Islena, which is still not completed; I paid separately for the engineered foundation plans, Northern Structural Consulting $1,420.00) Lindal then offered a refund of $29,064.91 of my $42,000.00 deposit?
My deposit (I can produce the canceled checks) was $5,000.00 check #3215 dated 6-13 for design and material, and check #1002 for $62,666.55 dated 12-10 15% deposit for material, this is a total of $67,666.55.
Mr. Carlascio states the cancellation was entirely at my instigation and sees no reason Lindal should share in any expense. I believe it was Lindal's direct representative / agent, Prescott Designer Homes, who signed the contract, selected the appraisers, had the direct contact with Lindal Cedar Homes and selected and supported an unlicensed contractor to bid the building of the new home.
On July 7th I met with Mr. Gary Mavis and Mr. Jimmy Smith of PDH to see if we could solve our differences. We made a conference call to LCH, Paul Lindal CEO and Rob Meigan VP. Neither LCH or PDH were interested in solving our differences, in fact PDH increased the ante and requested even more funds. Lindal Cedar homes demanded $12,935.09 of the $42,000.00 deposit they received for incomplete incorrect unusable house plans that they claim were final. Prescott Designer Home demanded $17,271.89 of their $25,666.55 deposit for design and other trumped up unauthorized charges, (as in negotiating my construction loan rate with IndyMac Bank?).
In other words I am being held hostage for $30,206.75, for incomplete unusable house plans, out of the 15% material deposit of $67,666.55, which I was coerced to deposit to build our dream home. To date neither Prescott Designer Homes nor Lindal Cedar Homes have made an attempt to return even a portion of my funds ($67,666.55).
PDH and LCH made no attempt to negotiate or attempt to solve this issue during our meeting, I was given a take it or else decision.
PDH and or LCH have REFUSED to return even my uncontested funds of $37,459.80. This appears to follow other complaints that I have read, with interest, on the internet. PDH and LCH are attempting to fraudulently retain all my $67,666.55 with little to no services provided.
Charles
Elizabeth, Colorado
U.S.A.
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