Construction Archives

Deck Safety: An Important Part of Home Inspections

April 9, 2020 by Mark Brickhouse

Decks and Balconies
One important part of home inspections is deck safety. Every year, people are injured or killed because of deck and balcony collapses. One incident I read of in California, where six people lost their lives for being on a balcony, inspired me to write briefly on the topic. When I first began building, I thought that decks were over-built. Why so many supports, hangers, bolts and lag screws? Why are we pretending it needs to hold a tank? My boss at that time explained the reason very well. He told me that I should assume any deck would be filled with people. This is when I became much more appreciative of why we were building such stout decks. We were not going to fool around with people’s lives!
These days, while performing home inspections in the Waco area, I am especially diligent with deck inspections. Here are some questions I consider while inspecting decks:

What are the spans between the support beams? There are span limitations with any species of wood in regard to size. If the deck has not been engineered by a professional engineer, a span table can be helpful.
How is the ledger attached? Ledgers should be well-secured to the house frame in most cases. This usually involves a minimum of two 3/8 inch by 5 inch lag screws every 32 inches. Carriage bolts are even better, but these can only be installed in new construction. Too many fasteners, within reason, is better than not enough fasteners.
Are approved connectors in use? These are joist hangers, post to beam connections, elevated post anchors and other connectors that are designed to insure that the framing members will not pull apart over time due to weathering, expansion and contraction. Of course, they also add strength and integrity to the structure overall. Fasteners should be galvanized or stainless steel to resist corrosion. Typically, 1 1/2 inch 10D nails are required with connectors.
Is diagonal bracing present on supports for raised decks? The rule of thumb for this is for decks that are 12 feet or higher above ground, but even at 8 feet, I would recommend diagonal bracing. At the very worst, it is a bit too much, and that is never a bad thing when it comes to decks.

The numbered points above only apply to some types of decks. Another style uses cantilever, where the joist supports extend into the floor framing of the house or structure. The rule of thumb for this is for every foot that extends from the building, two feet extend into the floor area. These types of decks or balconies are difficult to inspect with any certainty on a completed house. They are also difficult to maintain properly and can lose integrity over time. A better, more reliable design would include steel beams.

A house at Lake Whitney I inspected last year had a deck that served as a strong example of a dangerous deck. It provided a gorgeous view, but I was nervous being on it with just two other people. I hope the pictures speak for themselves, but there are some comments to help.

Loose handrail and newel post, not able to resist 200 pounds of lateral pressure as generally required. No balusters or spindles at the staircase handrail to help prevent a fall of considerable distance. Balusters or spindles that were present were spaced more than the required minimum of 4 inches. These conditions presented a safety hazard.

Diagonal bracing provided support to the deck at its highest elevation, which was 16 feet and dropping because of the slope of the ground. A fall from that end or a deck collapse could result in severe injury or death. The bracing was connected to an upright post about 12 feet back, which also had bracing, forming a “web.” While this may have been sufficient to hold the deck and even a few people, this section should be able to hold as many people as could fit in that area, or 20-25 people. Would you want to join a large group of people on this deck?

Support posts were not secured to concrete piers on elevated post anchors as typically required. Support posts and beams were landscape timbers, which are not necessarily rated for strength, and are not intended to provide framing support of any kind. There were no post to beam connections as typically required.

Note the landscape timbers used for beam support and the post that is cracked from top to bottom. There were no joist hangers, which are typically required and provide added safety. Although this section was only five feet above ground, how comfortable would that feel if you were unprepared for a sudden fall?

Here is a sagging handrail with a 16 foot drop below, underscoring a need for mid-span newel posts. Horizontal wires were questionable, but technically okay. Unfortunately, when I pushed on the railing there, it was loose and wobbly. The view was breathtaking, but the fall would really take your breath away.

The post at left in the above picture looked like this below where it had been secured to the rim joist. With a 16 foot potential fall, wouldn’t you want that post to have lag bolts or carriage bolts? Wouldn’t you feel a bit safer if the rim joist was doubled there, which is a best practice? This deck was a danger to life and limb, and I gave my professional opinion thoroughly in the inspection report for this house.

This deck not only had to support itself, but also provided support to an upper floor of the house. Stone dressed columns were not directly supported under the deck, which is not visible in this picture. Also note the warped deck planking near the hot tub.

Decks should be well-designed and built with what may be called redundant features. In a nutshell, there should be no doubt that a deck will hold as many people as can fit on it with no strain. However, even a well-built deck needs ongoing maintenance. Flat surfaces are especially vulnerable to the effects of water and sun damage. Because of this, it is important to keep your deck well-sealed or painted. This will protect the surfaces and extend the life of the materials.

If you have read this far and would like an inspection of your deck, feel free to contact me. I can provide you with information on the condition of it and make recommendations for repairs or maintenance as a third party inspector.

Phase Inspections Make Sense

April 3, 2020 by Mark Brickhouse

Protect Your New Home Purchase With A Phase Inspection

Phase inspections are "snapshots" of work in progress when a new home is being built, and may well be the best inspection that money can buy. The reason is that information from the inspection can be used to help guide the process of building to minimize errors and correct problems before the house is completed. While several municipalities have a building department, many areas do not. Are you having a house built in a rural or unincorporated area? If you are, you are at the mercy of your general contractor and the subs he provides. Maybe you have a general contractor you really trust who has great references. That much is good, but he is still trying to maximize his profit while you will want to maximize your value. As a third party with no vested interest in the property, a professional inspector can fulfill a vital role, that of assuring that there are minimal defects, intentional or otherwise, during the building process.

You may even have a house in an incorporated area, but did you know that even the best city building departments are often overworked and may not be able to take the time to identify many of the flaws that could be present? I have found a number of issues even in homes that are built in incorporated areas such as defective workmanship or cost-cutting that directly affects the buyer. As a certified home inspector with decades of residential building experience, I would not be working for the city or county, but for you, the client!

Phase One: The Foundation

Designed for locality and soil conditions
Footings and slabs are on undisturbed or fully compacted soil
Moisture barrier present and continuous or properly lapped
Reinforcement placed and secured correctly
Adequate expansion joints and control joints
Supply lines, drain and waste vents are correct and properly protected
Wall plate anchors correctly placed

The items above are some of the important items I will look for as the foundation is being prepared, especially just prior to the pour. Mistakes that are made on the foundation are hard to detect and expensive to repair once the concrete dries!

Phase Two: Pre-drywall

Window and door openings have adequate headers and supports
Load bearing elements correctly stacked
Pressure treated lumber where in contact with cement
Rafters/trusses correctly placed, braced, and secured
Exterior sheathing correctly nailed
House wrap correctly installed
Window opening flashing and seals are done right; many are not
Windows and doors properly spaced in openings
Drywall backing present and adequate
Plumbing and electrical conductors have shields as needed/protected from drywall fasteners
Fire-stop assemblies as required
Ductwork not compressed and properly supported
Ductwork sealed with mastic where joined
Adequate return air
Bathroom/other fans ventilated correctly
Adequate and safe combustion air
Adequate and safe combustion exhaust
Attic and roof adequately vented
Service panel properly installed and grounded
GFCI/AFCI breakers installed
Weather-tight covers on exterior outlets
Conductors properly secured and protected
Insulation adequate for Energy Star recommendations in all areas of house
Holes from penetrations sealed in framing members
Penetrations sealed to the weather
Exterior doors and windows sealed

The items above are some, but not all, of the things I will look for during the framing and exterior finish stage. "Minor" defects during this stage can lead to big headaches later on. As you can see, there are numerous items of concern during this middle phase. Although pre-drywall is actually one of three phases, two or three visits during this time are highly recommended since this is when errors can be made that are difficult to correct if building continues before they can be corrected. For example if windows are not flashed or weather-proofed correctly, this should be addressed before siding or veneer is installed.

Phase Three: Final Inspection

This is identical to a TREC Home Inspection. Refer to the TREC standards of practice if you want to read more. You will receive a TREC Inspection Report as a part of this service, along with a complimentary home warranty report within 90 days of the builder's home warranty expiration.

Helpful Tips for First-Time Home Buyers

February 27, 2020 by Mark Brickhouse

Courtesy of InterNACHI

If you want to build a new home, there are things you need to know before you begin. Learn about construction standards and about buying land, so you know your rights.

MPS Supplementing Model Building Codes

The Minimum Property Standards (MPS) establish certain minimum standards for buildings constructed under HUD housing programs. This includes new single-family homes, multi-family housing and healthcare-type facilities.

HUD Minimum Property Standards and How They Supplement the Model Building Codes

Until the mid-1980s, HUD maintained separate Minimum Property Standards for different types of structures. Since that time, HUD has accepted the model building codes, including over 250 referenced standards and local building codes, in lieu of separate and prescriptive HUD standards. However, there is one major area of difference between the MPS and other model building codes — durability requirements. Homes and projects financed by FHA-insured mortgages are the collateral for these loans, and their lack of durability can increase the FHA’s financial risk in the event of default. More specifically, the model codes do not contain any minimum requirements for the durability of items such as doors, windows, gutters and downspouts, painting and wall coverings, kitchen cabinets and carpeting. The MPS includes minimum standards for these, and other items, to ensure that the value of an FHA-insured home is not reduced by the deterioration of these components.

HUD Field Office Acceptance for Areas Without Building Codes

HUD requires that each property insured with an FHA mortgage meet one of the nationally recognized building codes or a state or local building code based on a nationally recognized building code. In areas where such state or local codes are used, HUD determines if the state or local code is comparable to the model building code. There are also areas of the United States that do not have building codes. If no state or local building code has been adopted, the appropriate HUD Field Office will specify a building code that is comparable to one of the nationally recognized model building codes.

Interstate Land Sales

The Interstate Land Sales program protects consumers from fraud and abuse in the sale or lease of land. In 1968, Congress enacted the Interstate Land Sales Full Disclosure Act, which is patterned after the Securities Law of 1933, and requires land developers to register subdivisions of 100 or more non-exempt lots with HUD, and to provide each purchaser with a disclosure document called a property report. The property report contains relevant information about the subdivision and must be delivered to each purchaser before the signing of the contract or agreement.

Buying Lots from Developers

Be well informed when shopping for land. Lots may be marketed as sites for future retirement homes, for second home locations, or for recreational or campsite use. However, be wary of any investment aspect that may be stressed by sales personnel. If you plan to purchase a lot which is offered by promotional land sales, take plenty of time before coming to a decision. Before signing a purchase agreement, a contract, or a check:

know your rights as a buyer;
know something about the developer;
know the facts about the development and the lot you plan to buy; and
know what you are doing when you encounter high-pressure sales campaigns.

Generally, if the company from which you plan to buy is offering 100 or more unimproved lots for sale or lease through the mail or by means of interstate commerce, it may be required to register with the U.S. Department of Housing and Urban Development (HUD). This means that the company must file with HUD and provide prospective buyers with a property report containing detailed information about the property. Failure to do this may be a violation of federal law, punishable by up to five years in prison, a $10,000 fine, or both. The information filed by the developer and retained by HUD must contain such items as these:

a copy of the corporate charter and financial statement;
information about the land, including title policy or attorney’s title opinion, and copies of the deed and mortgages;
information on local ordinances, health regulations, etc.;
information about facilities available in the area, such as schools, hospitals and transportation systems;
information about availability of utilities and water, and plans for sewage disposal;
development plans for the property, including information on roads, streets and recreational facilities; and
supporting documents, such as maps, plans and letters from suppliers of water and sewer facilities.

The company filing this information must swear and affirm that it is correct and complete, and an appropriate fee must accompany submission. The information is retained by HUD and is available for public inspection. The property report, which is also prepared by the developer, goes to the buyer. The law requires the seller to give the report to a prospective lot purchaser prior to the time a purchase agreement is signed. Ask for it. The seller is also required to have the buyer sign a receipt acknowledging receipt of the property report. Do not sign the receipt unless you have actually received the property report. Check the developer’s property report before buying. This is the kind of information you will find in a property report:

distances to nearby communities over paved and unpaved roads;
existence of mortgages or liens on the property;
whether contract payments are placed in escrow;
availability and location of recreational facilities;
availability of sewer and water service or septic tanks and wells;
present and proposed utility services and charges;
the number of homes currently occupied;
soil and foundation conditions which could cause problems in construction or in using septic tanks; and
the type of title the buyer may receive and when it should be received.

Read the Property Report Before Signing Anything

This report is prepared and issued by the developer of this subdivision. It is not prepared or issued by the federal government. Federal law requires that you receive this report prior to signing a contract or agreement to buy or lease a lot in this subdivision. However, no federal agency has judged the merits or value of the property. If you received the report prior to signing a contract or agreement, you may cancel your contract or agreement by giving notice to the seller any time before midnight of the seventh day following the signing of the contract or agreement. If you did not receive this report before you signed a contract or agreement, you may cancel the contract or agreement any time within two years from the date of signing.

Your Contract Rights

If the lot you are buying is subject to the jurisdiction of the Interstate Land Sales Full Disclosure Act, the contract or purchase agreement must inform you of certain rights given to buyers by that Act. The contract should state that the buyer has a “cooling-off” period of seven days (or longer, if provided by state law) following the day that the contract is signed to cancel the contract, for any reason, by notice to the seller, and get his or her money back. Furthermore, unless the contract states that the seller will give the buyer a warranty deed, within 180 days after the contract is signed, the buyer has a right to cancel the contract for up to two years from the day that the contract is signed, unless the contract contains the following provisions:

a clear description of the lot so that the buyer may record the contract with the proper county authority;
the right of the buyer to a notice of any default (by the buyer), and at least 20 days after receipt of that notice to cure or remedy
the default;
a limitation on the amount of money the seller may keep as liquidated damages, of 15% of the principal paid by the buyer (exclusive of interest) or the seller’s actual damages, whichever is greater.

Contract Rights Concerning Property Reports

It has always been the law that if the developer has an obligation to register with the Interstate Land Sales Division, the developer or sales agent must give the buyer a copy of the current property report before the buyer signs a contract. Otherwise, the buyer has up to two years to cancel the contract and get their money back. That fact must also be clearly set forth in all contracts. You may have the right to void the contract if the subdivision has not been registered with HUD, or you were not given a property report.

Furthermore, if the developer has represented that it will provide or complete roads, water, sewer, gas, electricity or recreational facilities in its property report, in its advertising, or in its sales promotions, the developer must obligate itself to do so in the contract, clearly and conditionally (except for acts of nature or impossibility of performance). In addition to the right to a full disclosure of information about the lot, the prospective buyer may have the right to void the contract and receive a refund of their money if the developer has failed to register the subdivision with HUD or has failed to supply the purchaser with a property report.

While a purchaser may have the right to void the contract with the developer under these conditions, the purchaser may still be liable for contract payments to a third party if that contract has been assigned to a financing institution or some similar entity. The registration is retained by HUD and is available for public inspection. If the property report contains misstatements of fact, if there are omissions, if fraudulent sales practices are used, or if other provisions of the law have been violated, the purchaser may also sue to recover damages and actual costs and expenses in court against the developer. However, depending on when your sale occurred, you may be barred from taking further action due to the Act’s statute of limitations. Your attorney can advise you further on this matter.

“Cooling-Off” Period

Even if you received the property report prior to the time of your signing of the contract or agreement, you have the right to revoke the contract or agreement by notice to the seller until midnight of the seventh day following the signing of the contract. You should contact the developer, preferably in writing, if you wish to revoke your contract and receive a refund of any money paid to date. Even if the property report is delivered to you before you sign a sales agreement, the law gives you a “cooling-off ” period. This right cannot be waived.

A Word About the Interstate Land Sales Division

The HUD unit which administers the law, examines the developer’s registration statement, and registers the land sales operator is the Interstate Land Sales Division. Except for disclosure purposes, this office is not concerned with zoning or land-use planning, and has no control over the quality of the subdivision. It does not dictate what land can be sold, to whom, or at what price. It cannot act as a purchaser’s attorney. But it will help purchasers secure the rights given to them by the Interstate Land Sales Full Disclosure Act. HUD is authorized by law to conduct investigations and public hearings, to subpoena witnesses and secure evidence, and to seek court injunctions to prevent violations of the law. If necessary, HUD may seek criminal indictments. HUD is authorized by law to conduct investigations and, if necessary, seek criminal indictments.

Exemptions from the Law

The prospective buyer should be aware that not all promotional land sales operations are covered by the law. If the land sales program is exempt, no registration is required by HUD, and there will be no property report. Here are some of the specific situations for which the statute allows exemptions without review by HUD, including the sale of:

tracts of fewer than 100 lots which are not otherwise exempt;
lots in a subdivision where every lot is 20 acres or more in size;
lots upon which a residential, commercial or industrial building has been erected, or where a sales contract obligates the seller to build one within two years;
certain lots which are sold only to residents of the state or metropolitan area in which the subdivision is located;
certain low-volume sales operations (no more than 12 lots a year);
certain lots that meet certain local codes and standards and are zoned for single-family residences or are limited to single-family residences by enforceable codes and restrictions; and
certain lots, contained in multiple sites of fewer than 100 lots each, offered pursuant to a common promotional plan.

Other exemptions are available which are not listed above. If you have reason to believe that your sale is not exempt and may still be covered by the law, contact the Interstate Land Sales Division.

Know the Developer

Knowing your rights under the law is the first step in making a sensible land purchase. To exercise those rights, you also must know something about the honesty and reliability of the developer who offers the subdivision that interests you. Don’t fail to ask questions. Whether you are contacted by a sales agent on the phone or by mail, at a promotional luncheon or dinner, in a sales booth at a shopping center, or in the course of your own inspection of the subdivision, make it your business to find out all you can about the company and the property. In addition, get any verbal promises or representations in writing.

Don’t fail to ask questions. If you are seriously interested in buying a lot, ask if the company is registered with HUD or is entitled to an exemption. Request a copy of the property report and take the time to study it carefully and thoroughly. If you still have unanswered questions, delay any commitment until you have investigated. Discuss current prices in the area with local independent brokers. Talk to other people who have purchased lots.

A local Chamber of Commerce, Better Business Bureau, or consumer protection group may have information about the seller’s reputation. Inquire through county or municipal authorities about local ordinances or regulations affecting properties similar to that which you plan to buy. Don’t be high-pressured by sales agents.

Know the Facts About the Lot

Once you have decided on an appealing subdivision, inspect the property. Don’t buy “sight unseen.” Better yet, hire an InterNACHI inspector to perform a thorough property inspection. Also, check the developer’s plans for the project and know what you are getting with your lot purchase. It’s a good idea to make a list of the facts you will need to know. Some of the questions you should be asking, and answering, are these:

How large will the development become?
What zoning controls are specified?
What amenities are promised?
What provision has the developer made to assure construction and maintenance?
What are the provisions for sewer and water service?
Are all of the promised facilities and utilities in the contract?
Will there be access roads or streets to your property, and how will they be surfaced? Who maintains them? How much will they cost?
Will you have clear title to the property? What liens, reservations or encumbrances exist?
Will you receive a deed upon purchase or a recordable sales contract?
What happens to your payments? Are they placed in a special escrow account to pay for the property, or are they spent at once by the developer?
If the developer defaults on the mortgage or goes bankrupt, could you lose your lot and investment to date to satisfy a claim against the development?
What happens when the developer moves out? Is there a homeowners’ association to take over community management?
Are there restrictions against using the lot for a campsite until you are ready to build?
Are there any annual maintenance fees or special assessments required of property owners?

This is a partial list of points to consider before you commit your money or your signature.

Know What You are Doing

Interstate land sales promotions often are conducted in a high-pressure atmosphere that sweeps unsophisticated buyers along. Before they are aware that they have made a commitment, these buyers may have signed a sales contract and started to make payments on a lot. They may be delighted with the selection made, but, if not, it may be too late for a change of mind.

Nine Dishonest Sales Practices

Here are some of the practices avoided by reliable sales operations. Watch out for them and exercise sales resistance if you suspect they are occurring:

1. concealing or misrepresenting facts about current and resale value. Sales agents may present general facts about the area’s population growth, industrial or residential development, and real estate price levels as if they apply to your specific lot. You may be encouraged to believe that your piece of land represents an investment which will increase in value as regional development occurs. A sales agent may tell you that the developer will re-sell the lot, if you request. This promise may not be kept. Future resale is difficult or impossible in many promotional developments because much of your purchase price — sometimes as much as 40% — has gone for an intensive advertising campaign and commissions for sales agents. You are already paying a top price and it is unlikely that anyone else would pay you more than you are paying the developer. You may even have to sell for less than the price you originally paid for the lot. Sales promotions often are conducted in a high-pressure atmosphere. Furthermore, when you attempt to sell your lot, you are in competition with the developer, who probably holds extensive, unsold acreage in the same subdivision. In most areas, real estate brokers find it impractical to undertake the sale of lots in subdivisions and will not accept such listings. It is unlikely that the lot you purchase through interstate land sales represents an investment, in the view of professional land investors. Remember, the elements of value of a piece of land are its usefulness, the supply, the demand, and the buyer’s ability to re-sell it. The Urban Land Institute estimates that land must double in value every five years to justify holding it as an investment. In some areas, the cost of holding the land, such as taxes and other assessments, can run as high as 11% a year.

2. failure to honor refund promises or agreements. Some sales promotions conducted by mail, email or long-distance telephone include the offer of a refund if the property has been misrepresented, or if the customer inspects the land within a certain period of time and decides not to buy. When the customers request the refund, s/he may encounter arguments about the terms of the agreement. The company may even accuse its own agent of having made a money-back guarantee without the consent or knowledge of the developer. Sometimes, the promised refund is made, but only after a long delay.

3. misrepresentation of facts about the subdivision. This is where the property report offers an added measure of protection. A sales agent may offer false or incomplete information relating to either a distant subdivision or one which you visit. Misrepresentations often relate to matters such as the legal title, claims against it, latent dangers (such as swamps or cliffs), unusual physical features (such as poor drainage), restrictions on use, or lack of necessary facilities and utilities. Read the property report carefully with an eye to omissions, generalizations, or unproved statements that may tend to mislead you. If you are concerned about overlooking something important, discuss the report and the contract with a lawyer who understands real estate matters. The developer also may use advertisements that imply that certain facilities and amenities are currently available when they are not. Read the property report to determine whether these facilities and amenities are actually completed, or proposed to be completed in the future. If the company advertises sales on credit terms, the Truth in Lending Act requires the sales contract to fully set forth all terms of financing. This information must include total cost, simple annual interest, and total finance charges.

4. failure to develop the subdivision as planned. Many buyers rely upon the developer’s contractual agreement or a verbal promise to develop the subdivision in a certain way. The promised attractions that influenced your purchase (golf course, marina, swimming pool, etc.) may never materialize after you become an owner. If they are provided, it may be only after a long delay. If you are planning on immediate vacation use of the property, or are working toward a specific retirement date, you may find that the special features promised of the development are not available when you need them.

5. failure to deliver deeds and/or title insurance policies. Documents relating to the sales transaction may not be delivered as promised. Some sales in the promotional land development industry are made by contract for a deed to be delivered when the purchaser makes the last payment under the terms of the contract. A dishonest developer may fail to deliver the deed, or deliver it only after a long delay. A sales agent may offer false or incomplete information.

6. abusive treatment and high-pressure sales tactics. Some sales agents drive prospective customers around a subdivision in automobiles equipped with citizen band radios which provide a running commentary on lot sales in progress. The customer may be misled by this and other sales techniques to believe that desirable lots are selling rapidly and that a hurried choice must be made. Hurrying the buyers into a purchase they may later regret is only one ploy of high-pressure sales agents. More offensive is abusive language used to embarrass customers who delay an immediate decision to buy. In some instances, hesitant buyers have been isolated in remote or unfamiliar places where transportation is controlled by the sales agent or the agent’s organization.

7. failure to make good on sales inducements. Free vacations, gifts, savings bonds, trading stamps, and other promised inducements are used to lure people to sales presentations or to development sites. These promised treats may never materialize. Sometimes, special conditions are attached to the lure, or a customer is advised that gifts go only to lot purchasers. A “free vacation” may be the means of delivering the prospective buyer to a battery of high-pressure sales agents in a distant place. The promised attractions may never materialize.

8. “bait and switch” tactics. Lots are frequently advertised at extremely low prices. When prospective buyers appear, they are told that the low-priced lots are all sold and then are pressured to buy one that is much more expensive. If the cheaper lot is available, it may be located on the side of a cliff or in another inaccessible location. If accessible, it may be much too small for a building or have other undesirable features. The buyers may be lured to the property with a certificate entitling them to a “free” lot. Often, the certificate bears a face value of $500 to $1,000. If the buyers attempt to cash it in, the amount is simply included in the regular price (often inflated) of the lot they choose. Often, this so-called “bait and switch” technique has a delayed fuse. Buyers who purchase an unseen lot for later retirement may be unpleasantly surprised when they visit the development. The lot they have paid for may be remote from other homes, shopping and medical facilities. It may be insufficiently developed for use. When the buyers complain, sales personnel attempt to switch them to a more expensive lot, applying the money paid for the original lot to an inflated price for the new one, and tacking on additional financing charges. If the unhappy purchasers lack sufficient funds to accept this alternative, they are left with an unusable, unmarketable first choice.

9. failure to grant rights under the Interstate Land Sales Full Disclosure Act. Purchasers may not be given copies of the property report before they sign a sales contract. Some sales agents withhold this detailed statement until customers choose a specific lot. Sometimes, the buyers receive the report in a mass of promotional materials and legal documents. Unaware that the report is in their possession, they fail to read and understand it before signing a sales contract.