Centex Homes (Raleigh Durham) Material Misrepresentation During Home Purchase Raleigh North Carolina

We purchased our home in August of 2003 after being told by a Centex employed real estate agent that the area behind our home did not currently have plans for development. A few months later (January, 2003) construction began on a new 24 hour Super Wal-mart and a home improvement store (Lowe's or Home Depot). Our Real Estate agent has provided us with a notarized statement confirming that Centex told us that there were no plans for development.

We also have a letter from the initial purchaser of the home. He backed out of the deal when the home was approximately 80% complete because he discovered that the Wal-mart was to be built on the land behind the home.. He informed the agent of the plans and of his discontent for not being told.

The plans for construction were approved by the City of Hillsborough in November of 2001. The previous purchaser informed Centex that the plans were approved and the construction was going to begin. Despite this knowledge, Centex homes did not disclose this material fact to us. Disclosure of a material fact is mandated under NC state law. Failure to do so is a material misrepresentation. Intentionally lying about their knowledge of these plans borders criminal behavior. We have since had our home appraised and the appraiser has found there to be a $16,000 external obsolescence due to the presence of the shopping center.

We have contacted Centex and requested to meet with them to discuss the situation and attempt to come to some agreement. Centex refused and told us that they would have no contact with us directly and that all future correspondence would be handled by their legal department. We waited for 4 weeks and then filed complaints with the NC Real Estate Commission and the Board of Realtors. We are not able to move due to the negative equity in our home.

My wife is 8 months pregnant and has been extremely distressed about the pending problems. She has discussed the stress level with her doctor and is worried about the effect that it may be having on the health of our unborn child. I am mostly concerned with the problems created by the transients and vagrants that are attracted to such establishments and their proximity to our home. Centex has acted unethically and I want to take whatever steps necessary to protect the financial health and safety of my family.

Our dream home purchase has turned in to a nightmare. HELP!! We can't sue (arbitration clause) and I am at a loss.

Eric
Hillsborough, North Carolina
U.S.A.