Read this not only if you are thinking about using this real estate company, but if you are getting ready to use ANY agency. This story will open your eyes and shock you into doing everything you can to protect yourself above and beyond what you ever thought you needed to do.
We were represented by Franci Hicks of Silverado Homes & Land in the purchase of a 1.65 million dollar home.
Prior to the close on the home, we voiced numerous concerns regarding the electrical wiring of the home that were a result of the house constantly blowing the circuit breakers. We emailed Joel Schmitz from Sherlock Homes (the hired home inspector) and advised him that we were VERY concerned about buying the house due to the electrical problems. Mr. Schmitz responded with an email saying "I am equally concerned about the electrical on this house". And went on to say, "the builder and his subcontractors are on the hook for the next two years." So what???
After feeling very uncomfortable with the inspector's reasons for continued electric problems and his being "concerned" about the electric issues as well, we determined that we did not want to buy the house. We sent correspondence to Ms. Hicks in writing to CANCEL the contract effective immediately due to the fact that the outstanding electrical problems had not been repaired as well as numerous other outstanding defects that had not been repaired pursuant to a written request for repairs.
Ms. Hicks DID NOT cancel our contract as instructed to in writing. Ms Hicks in fact responded by email that her broker Sherry Kesling "called our company attorney and what he said is that you need to close escrow.." She went on to say that everything had been satisfactorily repaired and for the items not repaired the items would be repaired and that we had no legal right to terminate the contract. She went into the details of the costs we would incur not closing and that we would be in essence sued for breach of contract. Those representations were fraudulent and were made intentionally to coerce us into purchasing said property with the undisclosed material defects. Not living in the state that the home is located, not being a lawyer and not knowing the law in said state we relied on our agent to know and do her job.
It is my understanding and belief of several attorneys that Ms. Hicks having sent correspondence to us giving us legal advise is actually in violation of Rule 31 (B) (1) of the Arizona Rules of the Supreme Court, and is the unauthorized practice of law. Ms. Hicks further advised us that Silverado Homes & Land attorney had told her that they we had a right to obtain re-inspections, but that we had no right to cancel the contract. She actually goes on to incorrectly cite the Arizona Dwelling Action Statute, her advice to us was clearly incorrect, misrepresented the law and the circumstances regarding the existing defects and caused us to go through with the purchase of a defective home.
Ms Hicks also claimed that she brought her personal electrician into the home to look at the electrical problems. She says in an email "I have been meeting with my electrician to remove any fears on your behalf. Unfortunately we believed that she had her electrician looking at the problems, which we would learn later had to be false based upon an email we received three months after the closing on the home.
The home is severely underpowered. We are told by professional electricians that this home cannot be repaired, our homeowner's agent says that they may not be able to keep our house insured, and it obviously cannot be resold as it is. Franci Hicks, Sherryl Kessling, and Silverado Homes & Land have committed offenses that are unconscionable
Three months after we were forced to close on this house with what we believe to be false information by Franci Hicks and Sherry Kesling of Silverado Homes & Land I received an email from Ms Hicks saying "When I read that your house has 200 amps, I thought to myself, I would never buy a large house like that with only 200 amps." ARE YOU KIDDING ME? How would she not know this until 3 months AFTER the purchase. When exactly did she read the inspection report? It appears 3 months after the closing. She claimed to have had her own personal electrician involved in this matter during the time prior to purchase as we were voicing our concerns regarding the electric problems. How would this electrician not have noticed that we only had 200 amp service and therein is the problem? The agent is supposed to read the inspection report and assist the buyer in problems found in it before they buy the house?
The fact that this house had one 200 amp box that was inadequate for a 4700 sq foot house was not disclosed to us prior to the purchase of the house, it was not disclosed when the house was re-inspected for the electrical problems prior to the purchase, and in fact the builder, the inspector, and possibly Ms Hicks fraudulently misrepresented the condition of the home at the time the purchase contract was executed. If the agent and her broker can prove that they were completely unaware of the fact that the home only had 200 amps, then the agent and the broker have committed negligent misrepresentation in my opinion and that of several attorneys.
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This home cannot be repaired, and it cannot be insured, and it cannot be resold. Franci Hicks, Sherryl Kesling, and Silverado Homes and Land have committed offenses that are unconscionable.
We hired an attorney that wrote a letter to Ms. Hicks and Ms. Kesling. We received a response back from their attorney a long winded 9 pages telling our attorney why our claim against Silverado will fail. I wonder if this is the same attorney that they obtained the legal advice from on our behalf when we told Ms Hicks to immediately cancel the contract.
Their attorney says, "I note, bringing these claims will require your clients to incur substantial attorney's fees, costly expert fees" That is not a deterrent for us as I don't see us much worse off financially than the 1.65 million dollars we have invested in a worthless home. He goes on to say that "Silverado Fine Properties at all times exercised at least that degree of care and competence required by Arizona Law." I guess we all now know that that bar isn't set very high! He goes on to say "Real estate agents are not liable for serving as mere conduits of information.." What does anyone need a real estate agent for? I wish I could post the entire 9 page letter because believe me that is the question that you would walk away with. I would like to know how the payment of over $50 thousand dollars is justified for this transaction since there isn't a lot that an agent is required to do and according to the lawyer they don't" seem to be liable for much of anything. WHO NEEDS REAL ESTATE AGENTS???
We are in the process of filing a lawsuit and will seek punitive damages, attorneys' fees and costs. We are also going to file the appropriate actions with the licensing agencies of each of the parties as well as the Attorney General's office and the Board of Real Estate in Arizona.
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