The Real Deal Miami

Florida settles complaint against home builder Pulte for allegedly substandard construction

The office of Florida Attorney General Pam Bondi said it conducted a two-year investigation revealing that Pulte built Florida homes that violated building codes
January 05, 2019 03:30PM

(Credit: iStock)

Florida Attorney General Pam Bondi reached a settlement with PulteGroup after alleging that Pulte built Florida homes that violated building-code standards and hid the violations from home buyers.

Bondi’s office announced that the settlement with PulteGroup and its subsidiary Pulte Home Company arose from a two-year investigation.

Bondi’s office filed a complaint against Pulte alleging that the company violated the Florida Unfair and Deceptive Trade Practices Act.

According to the complaint, Pulte violated state law by “unfairly denying certain Florida homeowners’ repair claims without performing an adequate inspection of the home.”

The complaint also charges Pulte with “unfairly withholding a customer’s deposit in certain circumstances.”

The investigation has encouraged Pulte to spend about $64 million to repair Florida homes the company built, and Pulte has spent more than $10 million on upgraded building materials, improved construction techniques and additional training for employees and contractors, according to Bondi’s office.

Under the settlement, Pulte is required to repair additional Florida homes that are as old as 10 years. The company also must pay $4.7 million for restitution claims, including out-of-pocket expenses that homeowners incurred to repair construction defects.

Bondi’s office told Housing Wire that it soon will announce how homeowners can claim part of the settlement amount. [HousingWire] – Mike Seemuth