Prescott Designer Homes, Prescott, AZ - unhappy with home design and construction services provided

# 5 for September 27, 2003

Complaints.com received the following on September 26, 2003:

From:

RE: Prescott Designer Homes, Prescott, AZ - unhappy with home design and construction services provided

Lindal Cedar Homes and Prescott Designer Homes My wife and I have long awaited my retirement and dreamed of building our new home in Prescott. In early 2002 we selected land, put down the deposit and acquired a parcel in north Prescott. In June 2002, Prescott Designer Homes (PDH) and I entered into a Preliminary Design Agreement in which PDH was to prepare preliminary floor plans (all floors), preliminary exterior elevations (all elevations). The plans prepared were to be a modification of the Lindal Cedar Homes ("LCH") Casa Islena plan. PDH's charge for providing this service was $5,000.00, complete which I paid. As it turned out, PDH never produced preliminary plans that adequately reflected my requirements. Despite this fact, PDH pressured me into signing the LCH Purchase and Sale Agreement (the "LCH Agreement"), and making a 15% materials deposit of $62:666 55 toward the final purchase of the LCH package Although hesitant to comply, in the spirit of cooperation and good faith, I executed the LCH Agreement and paid the deposit. Next PDH handed out incomplete drawings to acquire construction bids for the home. The low bidder which PDH recommended was not even licensed to build new homes in Arizona. PDH then conferred with my lender for a suitable appraiser for the construction loan. The appraisal came in finally 30 days late and $535,000 less then the bid to construct the home. I then independently acquired a bid from the local lumber yard in Prescott for material cost, (lumber, window, doors, hardware, etc.). The bid was $120,000 with a 20% fudge factor added. LCH/PDH was charging $386,607 for the same package. Thereafter, PDH still did not prepare adequate plans, and after waiting a more than reasonable time for performance, I had no choice but to consider PDH and/or LCH to be in breach of the PDH Agreement and the LCH Agreement. At this point I elected to seek a refund of monies I paid. I have found that LCH received $42,000 and PDH retained $25,666.55 of my funds. Both LCH and PDH have stated that PDH spent my $25,666.55 on other business needs, and have no funds to return. Both LCH and PDH have made invoices of bogus, unrealistic, unauthorized charges. September 24, 2003 I received a Cancellation and Release Agreement from LCH’s attorney. This agreement would release LCH, PDH and myself from the purchase agreement and require my silence on any of the details of our dealings and that I would not reproduce the drawings. In exchange I would receive $29,064.91 of my funds returned. This means they would keep $38,601.64 of my material deposit for unusable and incorrect drawings which I would never use anyway. Finally, the charges that were incurred are extreme to say the least in my opinion. If anyone would like to see these itemized charges they may write me or go to the Internet and search Lindal Cedar Homes Complaints. You will find several others with very similar stories to tell. Charles F. Turney

Elizabeth, CO 80107