• Report: #66571

Complaint Review: Prescott Designer Homes - Lindal Cedar Homes

  • Submitted: Fri, September 05, 2003
  • Updated: Thu, September 25, 2003

  • Reported By:Elizabeth Colorado
Prescott Designer Homes - Lindal Cedar Homes
1277 N Rhinestone Drive, Prescott, AZ And Lindal Cedar Homes 4300 South 104th Place Seattle, WA 98178 Prescott, AZ And Seattle, WA, Arizona U.S.A.

Prescott Designer Homes and Lindal Cedar Homes attempting to fraudulently retain $67,666.55 with little to no services provided. ripoff Prescott Arizona, Seattle Washington

*Author of original report: Break down of Bogus Charges

*Consumer Comment: Why Charles is Here! ..Seattle attorney was required to pry Petes money from the dirty hands of Lindal in exchange for Petes silence

*Consumer Comment: Thank You for the Warning

*Consumer Comment: Thank You for the Warning

*Consumer Comment: Thank You for the Warning

*Consumer Comment: Thank You for the Warning

*Consumer Comment: Thank You for the Warning

*Consumer Suggestion: Don't give in! ..This company cannot go on destroying lifetime dreams

*Consumer Suggestion: Business as usual for Lindal Cedar Homes & dealers

*Consumer Suggestion: Couple of suggestions

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This is a formal complaint of consumer fraud and consumer theft against the following businesses: Prescott Designer Homes and (Prescott Designer Homes a direct representative for)Lindal Cedar Homes

On June 16, 2002 I wrote a $5000.00 check to Prescott Designer Homes for the design of our dream home in Prescott, Az. I had taken the Casa Islena plans and modified them to match our dreams. For the next several months we worked back and forth to set the plans.

November 26, 2002 I received a letter from Prescott Designer Homes pressuring for a signed purchase and sales agreement and $62,666.55, even though we did not have a good set of drawings or materials list. I received another letter dated December 5, 2002 stating all corrections had been made to the plans, (of which I did not and do not have a good copy). The permitting process and the competitive bids, if we start, right now, with the signed purchase and sales agreement and $62666.55, would take to the middle of March, with the home package arriving on my lot, mid April. Any changes necessary could be made after the purchase and sales agreement is signed and funds were received. That to receive any discounts I had to sign the purchase and sales agreement NOW.

With the above pressure and a desire to get started I was coerced into signing the sales agreement, writing out a check for $62,666.55 and PDH started the bidding process.
PDH (Prescott Designer Homes) recommended two general contractors. Not including the land, one bid came in at $1,043,187.00 and the second bid at $1,313,899.00 a rather shocking spread of $270,712.00.

PDH recommended I consider the lower bid. I then independently, discovered that the low bidder (Artistic Remolding) was licensed only to remodel not build a new home as a contractor in Arizona, thus he would be uninsured in addition. This recommendation could have had disastrous results.

IndyMac Bank, my proposed lender, then conferred with PDH on a suitable appraiser. The man PDH recommended appraised the land and building at $901,000.00, this against a house that was to cost me $1,300,000 to build, not including the land with an appraisal for $300,000.00. The deal looked dead.

Gary Mavis of PDH then assured me and IndyMac Bank that he would recommend another appraiser at my expense who was certified for deals over one million and thus Phil Edwards was retained to do the job. Mr. Edwards and PDH assured us that the appraisal would be in hand no later than March 29, 2003. Over a month past that date and after several phone calls from the bank to PDH all confidence was lost by both the bank and the undersigned.

As a result of all of the forgoing I have lost my financing and now have no choice but to put off my building plans until my Colorado home is sold.
I have received bad advice from PDH / Lindal Cedar Homes (LCH) at a great cost to me, both emotionally and financially. I have NEVER received an acceptable set of plans, I have received an appraisal from PDH's recommended appraisers that has jeopardized my financing arrangements and I have spent considerable time with unlicensed contractors recommended by PDH, direct agent for Lindal Cedar Homes.

At this point in time, due to disruption of financing, I was in jeopardy of forfeiting a $40,000.00 land deposit. I very strongly feel that I have been put in this tenuous position as a direct result of Prescott Designer Homes / Lindal Cedar Homes.

As of today, I have not signed off on a set of plans as they are not correct. No material has been ordered; no material has been shipped or delivered. PDH's suggested solution was to return just $31,000.00 and to keep $36,666.55 (of my MATERIAL deposit) for a plan that is still not correct, is incomplete and unusable. This offer is an insult.

Now I'm told they finally got the appraisal May 6th, 2003 at $1,035,000.00 for the land and home. This is still way off the mark, too low and too late to save this deal.
I am willing to settle this dispute upon return to me of all funds except the $5,000.00 design fee provided funds are returned immediately so that I can minimize damages, complete the land deal and not lose the land deposit.

May 20, 2003 I received a letter from Lindal Cedar Homes, (Lou Carlascio, VP Sales) stating Lindal was charging $12,925.09, no invoice presented, for the plans and engineering of the proposed home. (This charge was to modify an existing set of plans, The Casa Islena, which is still not completed; I paid separately for the engineered foundation plans, Northern Structural Consulting $1,420.00) Lindal then offered a refund of $29,064.91 of my $42,000.00 deposit?

My deposit (I can produce the canceled checks) was $5,000.00 check #3215 dated 6-13-2002 for design and material, and check #1002 for $62,666.55 dated 12-10-2002 15% deposit for material, this is a total of $67,666.55.
Mr. Carlascio states the cancellation was entirely at my instigation and sees no reason Lindal should share in any expense. I believe it was Lindal's direct representative / agent, Prescott Designer Homes, who signed the contract, selected the appraisers, had the direct contact with Lindal Cedar Homes and selected and supported an unlicensed contractor to bid the building of the new home.

On July 7th, 2003 I met with Mr. Gary Mavis and Mr. Jimmy Smith of PDH to see if we could solve our differences. We made a conference call to LCH, Paul Lindal CEO and Rob Meigan VP. Neither LCH or PDH were interested in solving our differences, in fact PDH increased the ante and requested even more funds. Lindal Cedar homes demanded $12,935.09 of the $42,000.00 deposit they received for incomplete incorrect unusable house plans that they claim were final. Prescott Designer Home demanded $17,271.89 of their $25,666.55 deposit for design and other trumped up unauthorized charges, (as in negotiating my construction loan rate with IndyMac Bank?).

In other words I am being held hostage for $30,206.75, for incomplete unusable house plans, out of the 15% material deposit of $67,666.55, which I was coerced to deposit to build our dream home. To date neither Prescott Designer Homes nor Lindal Cedar Homes have made an attempt to return even a portion of my funds ($67,666.55).
PDH and LCH made no attempt to negotiate or attempt to solve this issue during our meeting, I was given a take it or else decision.

PDH and or LCH have REFUSED to return even my uncontested funds of $37,459.80. This appears to follow other complaints that I have read, with interest, on the internet. PDH and LCH are attempting to fraudulently retain all my $67,666.55 with little to no services provided.

Charles
Elizabeth, Colorado
U.S.A.

Click here to read other Rip Off Reports on Lindal Cedar Homes
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This report was posted on Ripoff Report on 09/05/2003 09:44 AM and is a permanent record located here: http://www.ripoffreport.com/r/Prescott-Designer-Homes-Lindal-Cedar-Homes/Prescott-AZ-And-Seattle-WA-Arizona-86304/Prescott-Designer-Homes-and-Lindal-Cedar-Homes-attempting-to-fraudulently-retain-676665-66571. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Author of original report

Break down of Bogus Charges

AUTHOR: Charles - (U.S.A.)

On or about June 13, 2002, Prescott Designer Homes (PDH) and I entered into a Preliminary Design Agreement (the "PDH Agreement"). Pursuant to the PDH Agreement, PDH was to prepare preliminary floor plans (all floors), preliminary exterior elevations (all elevations) and preliminary basement plans. 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 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.

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. Both agreements were terminated through no fault of mine. Rather than pursue damages or litigation, I elected to seek a refund of monies I paid. I understood that the $5.000 00 paid pursuant to the PDH Agreement was non-refundable. However, the $62,666.55 paid pursuant to the LCH Agreement are monies to which I am entitled. I now understand that PDH kept $20,666.55 of those funds.

When I attempted to obtain a refund from PDH of this amount, I was offered the meager sum of $8,394.89, and provided with a list of charges that PDH deducted from the $20,666.55. Those charges are not valid. The breakdown below addresses each of the charges and explains why they are not allowed.

1. The following entries were made prior to my entering into an agreement with PDH and cannot be charged to me:

a. 02/27/2002 Charlie Tumey called... 1

b, 03/06/2002 Gave Charlie package price... 1.5

c. 06/03/2002 Charlie called - will be here ... 0.5

d. 06/12/2002 Office visit with Charlie & Michele 1.5

e. 06/13/2002 Charlie signed Preliminary Design ... 2

These charges related to discussions prior to PDH and I entering into the PDH Agreement. As such, I cannot be charged for this time which amounts to 6.5 hours. At $35 an hour, the charges for this time equal $227.50. This must be deducted from the amount claimed due.

2 The following entries all relate to the preparation of preliminary plans and are therefore, included within the $5.000.00 paid under the PDH Agreement:

a. 07/09/2002 Trip to view land 2.5
b 07/09/2002 House Design 4
c 07/11/2002 Original Plem Plan

6.5

d. 07/13/2002 House Design 2

e. 07/16/2002 Preliminary Plan-Amendment A 825

f. 07/16/2002 House Design 2.5

g. 07/17/2002 Preliminary Plan-Amendment B 4

h. 07/17/2002 House Design 3

i. 07/18/2002 Preliminary Plan - Amendment C 6

j. 07/20/2002 House Design 4

k. 07/30/2002 Trip to lay out house with Charlie 3

I 07/30/2002 Preliminary Plan - Amendment D 11.5

m 07/31/2002 House Design 5

n. 08/31 /2002 Preliminary Plan - Amendment E 17.5

o. 08/02/2003 House Design 5

p. 08/03/2002 Preliminary Plan - Amendment F 6.75

q 08/07/2002 House Design 2.5

r 08/11/2002 Preliminary Plan - Amendment G 215

s. 08/16/2002 House Design 6

t. 09/23/2002 Preliminary Plan-Amendment H 26,75

u. 10/34/2002 House Design 3

v. 10/07/2002 Preliminary Plan __ Amendment 1 11.25

w. 10/14/2002 House Design 1,5

x. 10/19/2002 Preliminary Plan - Amendment J 14.5

y. 11/28/2002 Preliminary Plan - Amendment K 14.75
T
he time spent on theses entries amounts to 193.25. At $35 an hour, the amount charged for the preliminary design process is $6,763.75. Since the PDH Agreement provide for a flat fee of $5,000, the excess amount above $5,000, that being $1,763.75 must be subtracted from the charges PDH claims are due.

3. All of the remaining items were performed by PDH either (i) on its own, (ii) as part of the preliminary design process, (iii) as tasks unnecessary to the preliminary plan process, (iv) performed prior to the execution of the LCH Agreement, (v) performed in connection with securing the LCH Agreement, or (vi) unauthorized.

4. As for the items listed on the third page of the Activity List, it is inconceivable that PDH even suggests it is entitled to be compensated for those items. I cannot be charged for the time that PDH spent coordinating with LCH or vendors at all, but certainly not as additional charges above and beyond the itemized list. Further, the charges for research are not substantiated, as are the repricing efforts to fraudulently keep my funds.

5. For PDH to add the additional charge for "Overhead & Lost Opportunity" is to charge me for an opportunity that PDH lost through its own negligence and inability to perform under its agreements with me.

6. It shocks the conscious that PDH would charge me for signing the LCH Agreement, for discussing errors in the plans that LCH provided, (01/15/2003 Prelim plans received from LCH lots of errors ), for submitting bids when one contractor was not even qualified / certified to perform the work, for visiting the property at times when the presence of PDH was not necessary, and for many of the items listed on the Activity File.

7. LCH has outrageously charged $8,458.75 (via incorrect square footage [6767 x $1.25] the correct square footage is 5167) for final plans which have never been completed, never correct and never signed off. LCH has charged $300.00 for a sunroom set up fee (?) and 5 mailings at $70 each (real cost approximately $25 each).

8. Finally, the charges that were incurred are extreme. Each telephone call lasted, to PDH's representation, no less than one-half hour and up to over one hour. PDH got involved in the appraisal process and charged me for excessive time when PDH's acts never produced an appraisal sufficient for the project PDH and LCH failed to timely perform under their agreements, and I had the right to terminate the PDH Agreement and the LCH Agreement.
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#2 Consumer Comment

Why Charles is Here! ..Seattle attorney was required to pry Petes money from the dirty hands of Lindal in exchange for Petes silence

AUTHOR: Edwin - (U.S.A.)

A consumer involved in a custom home project often has made significant financial commitments that may include purchases on land, permits, wells, land improvements, and loans. Including placing an existing house for sale assuming (recklessly perhaps) that their new home is only a matter of time, hard work and keeping all your contractors in line.

In most cases homebuilders or contractors interested in quality and good references for future business place pride and professionalism above petty profit. Most will work closely with the customer to finish the job and avoid problems. Top awards for contractors that help correct problems even though that may reduce the profit slightly, knowing the customer will always come back.

The sad reality of Charles situation is that through the obvious incompetence, inability or total disinterest of Prescott Designer Homes to complete even the simplest task of providing complete, accurate and detailed plans has placed Charles in serious financial jeopardy! It is up to the consumer to ensure the risks are minimized in any financial transaction and to protect himself from financial harm. You know, Get it in writing. Hire a Lawyer first. You should have known(Thats what this site is for!)

Charles wanted a custom home, just like Robin, Pete and myself (The latter 3 NOT Prescott customers). For one reason or another we were attracted by the glamour of a Lindal home. (Silly us). The Lindal corporation was not just a hole in the wall business in the gut of the city, where the wise consumer would have probably checked references and made sure everything was legal. Lindal had (and I do mean HAD) a reputation as a classy company with what appeared to be a highly desired product and marketing that truly suggested that they were interested in quality and customer support. The comfort of a well-known name often misleads us into thinking nothing bad could happen here!

An excerpt from the Lindal website:
-Our dealers combine hands-on expertise and attention to detail, with the experience, financial strength and quality assurance that Lindal will stand behind you from start to finish. Its a combination of professional excellence and personal attention you wont find anywhere else.

Excerpts from Prescott website:
-Prescott Designer Homes provides high quality permanent homes and vacation homes, products and services that exceed your dreams and expectations.

-Prescott Designer Homes is here to serve you from Concept to Completion to help turn your dreams into reality.

After reading this post it would appear that both Lindal and Prescott Designer Homes are willingly engaged in fraudulent, deceptive and misleading marketing and business practices. It would also appear that Lindal and Prescott are working closely together to accomplish this fraud and have previously conspired to engage in this fraud as evidenced by the Lindal logo on Prescotts website. It would also appear that Lindal and Prescott are actively working together to willingly deceive and entrap the customer into suffering additional financial harm for the financial gain of both Lindal and Prescott Designer Homes.

The activities of both Lindal and Prescott will require Charles to engage the services of an attorney as well as costs for civil court or arbitration in an attempt to recover his missing funds. I can only hope that Charles will also elect to file a criminal complaint with the State of Colorado and or Arizona as it his right to do so. The actions of Lindal and Prescott are morally reprehensible, malicious and solely designed to inflict emotional and financial damage in an attempt to intimidate the customer into an agreement that releases Lindal and Prescott from responsibility.

As in many cases, Lindal will attempt to get the customer to sign a confidentiality agreement in return for misappropriated or mishandled customer funds. Lindal relies on arbitration where complaints and judgements are confidential information and NOT on public record. This allows Lindal to sweep their greedy, disgusting and unprofessional behavior under the rug to ensure future consumers are unable to properly inform themselves of the risks involved in the proverbial Lindal dream.

THAT is why Charles is here!
The previous business practices of Lindal Cedar Homes have ensured that his ability to protect and inform himself was intentionally limited from the start. That in itself implies a conspiracy and intent to engage in unlawful business practices and should NOT be tolerated by the State of Washington! Or any State for that matter, but for some reason it is!

As in Petes case, after all confidence in Lindal and the dealer was lost, Lindal had the outrageous nerve to offer a reduced price package as a settlement! Instead the additional cost of a Seattle attorney was required to pry Petes money from the dirty hands of Lindal in exchange for Petes silence. Lindal was right, Petes home was a dream home and I think hes still dreaming about it just like Charles!
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#3 Consumer Comment

Thank You for the Warning

AUTHOR: Jay - (U.S.A.)

My Wife and I purchased a Lindal catalog about 4 months ago and have been dreaming of building our new home on our property in Evergreen, Colorado. We were planning to see the Lindal Dealer this Friday and give them $5000 to design our new home.
I thought I would check and see if anyone had a complaint or comments about Lindal.
Thank God I did!!!!
I have read the above story and the others and
I WILL NOT be doing business with Lindal.
Good Luck to Charles

Thank you for the heads up...
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#4 Consumer Comment

Thank You for the Warning

AUTHOR: Jay - (U.S.A.)

My Wife and I purchased a Lindal catalog about 4 months ago and have been dreaming of building our new home on our property in Evergreen, Colorado. We were planning to see the Lindal Dealer this Friday and give them $5000 to design our new home.
I thought I would check and see if anyone had a complaint or comments about Lindal.
Thank God I did!!!!
I have read the above story and the others and
I WILL NOT be doing business with Lindal.
Good Luck to Charles

Thank you for the heads up...
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#5 Consumer Comment

Thank You for the Warning

AUTHOR: Jay - (U.S.A.)

My Wife and I purchased a Lindal catalog about 4 months ago and have been dreaming of building our new home on our property in Evergreen, Colorado. We were planning to see the Lindal Dealer this Friday and give them $5000 to design our new home.
I thought I would check and see if anyone had a complaint or comments about Lindal.
Thank God I did!!!!
I have read the above story and the others and
I WILL NOT be doing business with Lindal.
Good Luck to Charles

Thank you for the heads up...
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#6 Consumer Comment

Thank You for the Warning

AUTHOR: Jay - (U.S.A.)

My Wife and I purchased a Lindal catalog about 4 months ago and have been dreaming of building our new home on our property in Evergreen, Colorado. We were planning to see the Lindal Dealer this Friday and give them $5000 to design our new home.
I thought I would check and see if anyone had a complaint or comments about Lindal.
Thank God I did!!!!
I have read the above story and the others and
I WILL NOT be doing business with Lindal.
Good Luck to Charles

Thank you for the heads up...
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#7 Consumer Comment

Thank You for the Warning

AUTHOR: Jay - (U.S.A.)

My Wife and I purchased a Lindal catalog about 4 months ago and have been dreaming of building our new home on our property in Evergreen, Colorado. We were planning to see the Lindal Dealer this Friday and give them $5000 to design our new home.
I thought I would check and see if anyone had a complaint or comments about Lindal.
Thank God I did!
I have read the above story and the others and
I WILL NOT be doing business with Lindal.
Good Luck to Charles

Than you for the heads up
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#8 Consumer Suggestion

Don't give in! ..This company cannot go on destroying lifetime dreams

AUTHOR: Robin - (U.S.A.)

Charles:

Such pain I remember when I was at the point you have reached when you realize that neither your dealer rep nor Lindal are on your side once they have a large enough chunk of your dinero. There is a tough fight ahead but DO NOT GIVE IN! This company cannot go on destroying lifetime dreams.

I could not have gotten through my Lindal nightmare without some good support, and regular stress management. I actually got physcally ill due to the stress of fighting my mess. If you need help or need me to conjur up the painful details of two years of lies and extreme mental torture by Lindal and Quest Cedar homes (my good for nothing rep). The dealers do not seem qualified (and misrepresent themselves as a replacement for an architect) to do anything except lie, act and pressure you to give money prematurally. Then when something goes wrong they high-tail it with your money and start to threaten you like YOU have done something wrong.

You are in for a wild ride but at least if you know...you can prepare and YOU CAN WIN if you know their game. All efforts need to be made to expose:
very bad business ethics,
interstate and international fraud,
shipment of faulty materials,
short orders and
non-existant customer support
of any company that targets good people to take advantage of.
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#9 Consumer Suggestion

Business as usual for Lindal Cedar Homes & dealers

AUTHOR: Edwin - (U.S.A.)

I have given the owner of this site permission to pass along my e-mail address to this unhappy customer so I may assist them in any way in dealing with Lindal and the typically dishonest dealer.

One thing we learned is there is NO deposit on materials in spite of what the contract or dealer says. All your money is payment for services rendered including the money paid to the dealer that is NOT shown on your pricer. (Wonder why)

You are about to learn just how dishonest Lindal and the dealer can be! It will be a very painfull experience.

An excerpt from Lindal's site:

"We realize that customer service issues may arise during this process. Lindal is committed to resolving these problems and complaints promptly and in a fair manner."

And lets not forget,
http://www.lindal.com/lindaldifference/index.cfm

Well Mr. Robert W Lindal?

What ever you do, dont take accept a ridiculous offer from Lindal or the dealer. Do not sign a confidentiality agreement to keep quiet, be patient and take them to court! I may be able to help with the bogus arbitration agreement. Lindal and the dealer uses it to stonewall you to financial death.

One thing else. Lindal and the dealer conspire to defraud you of your money and both Lindal and the dealer work together to keep you from recovering it. Keep in mind this is Interstate Fraud between your dealer in your state and Lindal in WA. There have been others and there WILL be more. It won't be long before someone will take a closer look!

Please post complaints with HADD.com, Consumeraffairs.com. The FTC your legislators, and those in WA. State.
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#10 Consumer Suggestion

Couple of suggestions

AUTHOR: Cindy - (U.S.A.)

Many state attorney general offices go after builders who take your money but don't deliver services, more so than if they build a home defectively. You can and should file a written complaint with every state agency you have that accepts consumer complaints...the number of complaints they receive determines whether they investigate or help you or not. Getting any agency to do anything is very hard and there IS corruption of course, so this is kind of a necessary formality and you should not expect much, but you should do it.

You should also file a written complaint with the Federal Trade Commission. The FTC has gone after one large national builder, (KB Home), but this kind of thing only happens if people file complaints of course.

The BBB is worthless in my opinion but also a necessary formality, as some agencies won't take your complaint if you have not first jumped thru that hoop.

Your District Attorney, also, should be contacted.

Consumer organizations like this one and WWW.HADD.COM do a lot to help people research companies or complain effectively. But the sad fact is, the laws against this sort of crime are not enforced consistently because builders lobby to erode consumer protection...it's part of the good old boy system that exists even in large cities and helps irresponsible companies go on doing business. Even large companies may have multiple corporatoins set up to hide or protect assets in the event someone does actually find a competent, motivated lawyer, sue, win, and figure out how to collect. Good luck!!!
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