problems

PREFACE: We purchased our Kaufman & Broad Home in April 1999. After signing the purchase contract, our troubles with Kaufman & Broad began. Here is an outline of the difficulties we experienced.   This outline will be followed by scanned documentation to prove our claims.

PROBLEMS WITH THE PURCHASE:

1. According to our sales contract, Kaufman & Broad had 14 calendar days to provide us with a executed copy of our purchase contract (and to let us know that the sale was approved). Several weeks passed, and we were still waiting. We did not know if we got the house (even though we had been pre-approved for a loan) So we hired a Real Estate Attorney. After a week or so, our Attorney (not K&B) informed us that the sale went through. In June 1999 (6 weeks after we signed the original sales contract) we finally received a copy of the executed purchase contract (this was accomplished only after many attempts by our Attorney ). KAUFMAN AND BROAD DISREGARDED THEIR OWN CONTRACT'S TERMS!

2. Kaufman & Broad set our Walk through and closing date (3 days) after our mortgage/interest rate lock expired(WE HAD A 30 DAY RATE LOCK, AND THE HOUSE WAS ALREADY BUILT WHEN WE PURCHASED IT. IN OTHER WORDS, NO ADDITIONAL BUILDING WAS REQUIRED). We pleaded to have the closing changed so we would not have to pay additional points due to closing delays. However, K& B refused to cooperate with us on this.

     2A) K&B attempted to change the terms of the "Close of Escrow" as outlined in our sales contract. Their excuses for this change? "We have new contracts now" (This is a quote by Diana Coykendall, Sales Rep. for K& B done via. conference call in our attorney's office ). This sudden change in the terms of the Close of Escrow was the cause for the problem with the walk through and closing date. If K&B had followed the terms of their own contract, our closing would have occured several days before our lock expired.

      2B) Our Real Estate Attorney had to call K&B's main office to explain that changes in newly printed contracts have no legal bearing on the terms of our already executed purchase contract. Our Attorney then informed K&B that they were in breach of contract, and demanded they follow the Close of Escrow terms as out lined in our sales contract.

    2C) After informing K&B of their breach of contract, our Attorney urged the Kaufman & Broad Legal Office to arrange a change in the Close of Escrow date.   In return for this courtesy, we had to sign an addendum to our contract. This addenda delayed us from taking possession of our home for several days after the Close of Escrow. The addenda also released K&B from having to pay out compensation caused by this delay.   This meant WE (not K&B) had to pay for a place to stay due to the delay. At least we did not have to pay for penalties on the mortgage. OUR TOTAL LEGAL FEES WERE $4055.00. If Kaufman & Broad did what their contract outlined, this cost would have been $0.00.