By Daily Mail (U.S.) | Created at 2024-10-30 18:32:49 | Updated at 2024-10-31 17:29:10
23 hours ago
A California family has filed a lawsuit claiming a real estate developer botched the construction of their dream home, forcing them to live in rental properties because they do not feel safe inside.
Jill and Matt Spaulding purchased their $1.6 million four-bedroom, three-bath dream home at 3250 Lama Ave in Long Beach in the spring of 2022.
But after closing on escrow - a decision they said they were pressured into - the couple discovered horrific defects in the property.
'This story is so much worse than a bad flip or a contractor cutting corners. It is a story of our family being exposed to many toxic health hazards that we may be dealing with for years to come,' Jill told The Orange County Register.
The 38-year-old mother-of-three said shortly after her family moved in, they noticed the bathroom lights flickered, termites were crawling along the walls and the ceiling oozed red liquid from the debris-clogged drain of a malfunctioning air conditioning system.
Jill and Matt Spaulding purchased their $1.6 million four-bedroom, three-bath dream home at 3250 Lama Ave in Long Beach in the spring of 2022
Asbestos, mold and fungus were detected throughout the house, and they discovered an improperly installed water heater had vented dangerous carbon monoxide directly into the floor of the couple's bedroom.
'Quite frankly, we still are not sure how we are still alive after our hot water heater situation,' Jill said.
The parents no longer felt comfortable letting their children - now ages 5, 3, and 7 months - live in the house, so they bounced around between hotels and Airbnbs until settling into a rental property in Los Alamitos in May 2023.
'The lack of stability and being constantly moved to unknown places affected my children's sleep and health and had psychological effects,' said Jill.
The Spaulding's decided to take legal action against the real estate developer who worked on the house, RS Real Estate Plus, the company's CEO Raafat Salem, Lisa Richmond, a broker with its affiliated company, RS Prime Properties, and their own relator Anne Hulegard of RE/MAX Estate Properties in Redondo Beach.
The lawsuit claims Salem and Richmond covered up the home's structural problems and unpermitted construction and that Hulegard was aware of it but did not tell them.
They noticed the bathroom lights flickered, termites were crawling along the walls and the ceiling oozed red liquid
Asbestos, mold and fungus were detected throughout the house, and they discovered an improperly installed water heater had vented dangerous carbon monoxide into the bedroom
'The amount of hardship that this flipper and his businesses have created for our family cannot be put into words. The effect this has had on us physically, financially and emotionally is indescribable,' said Jill.
The Southern California News Group reported there are no records of building permits issued to RS Real Estate Plus for renovations at the Spaulding's home.
The lawsuit lists defects such as a hot water heater that vents poison carbon monoxide into the second-floor joist bay, a defective HVAC system with abandoned ducts with asbestos which were left in the attic, raccoon feces left in the attic and mold.
The Spauldings also said that Hulegard pressured them to complete escrow despite the house failing inspections.
'At all times prior to close of escrow, [the Spaudlings] were unaware of the existence of the above-referenced defects. Had [the Spauldings] been warned by Defendants to investigate each of the items of work that Defendants knew had been performed by Seller without a permit, [the Spauldings] would have done so, and as a result, would not have closed on the purchase of the property,' the lawsuit said.
The couple is asking the court to rescind the purchase contract and order restitution of $1.6 million plus interest.
