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Report: #439138

Complaint Review: Mark Pugmire President Highland Homes - Mesa, Arizona

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  • Reported By: Gilbert Arizona
  • Author Confirmed What's this?
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  • Mark Pugmire President Highland Homes 1901 E University Dr # 200, Mesa,, Arizona U.S.A.

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Highland homes entered into a contract for my client to purchase a home. The contract state, 3% commission shall be paid with in 5 days of successful close of escrow. The president of Highland homes claims that they are in such financial disarray that they are not able to pay their contractual obligation. This contract was executed in August of 2007. Two years latter and attorney's fees, Highland has not paid. The company claims that they are not financially able to honor their contract or breach of contract agreement to make payments.

However, although they Claim to be financially unable to honor the contract that they wrote, they are not on the list at the Department of Real Estate in Arizona. This list is especially designed to protect the public against home builders that are having financial problems. This list helps the public make a decision regarding doing business with Highland Homes. This is only fair that the public is aware before doing business.

BEWARE PUBLIC! Take this warning if you are a Realtor showing properties OR a person thinking of making a purchase, or even a contractor considering doing business. Highland Homes CLAIMS they can not pay their bills including advertised and contracted commission, the President told me in writing that they are in financial distress. Please head the warning so that you are not stuck in the same situation as I am. They may not be able to fulfill their duties if they are not a financially sound company. I am only reporting what the PRESIDENT of the company personally wrote to me. They are unable to make payments because they are having financial difficulties. I am talking about a measly commission; now imagine if you are looking at buying the largest purchase of your life or considering contracting with this company. You may end up being ripped off.

Realtor
Gilbert, Arizona
U.S.A.

This report was posted on Ripoff Report on 03/30/2009 12:26 PM and is a permanent record located here: https://www.ripoffreport.com/reports/mark-pugmire-president-highland-homes/mesa-arizona-85203-8306/mark-pugmire-president-highland-homes-realtors-and-buyers-beware-does-not-honor-contract-439138. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
2Author
3Consumer
0Employee/Owner

#5 UPDATE EX-employee responds

Mark Pugmire

AUTHOR: Queen Creek Realtor - (United States of America)

POSTED: Sunday, July 04, 2010

To imply that Vic Pear took advantage of the selling agent's being in the hospital to close early and suggest he did something wrong in this transaction is equally as irresponsible as the agent that suggested the agent that filed the Ripoff Complaint had done a "shaddy deal"! All he did was follow Highland Homes directive that the home was finished sooner than originally expected and requested the buyer to close according to the Highland Homes contract. The "Gilbert Agent" owes Vic Pear and his sales partner at the subdivision an apology for making that smear and suggesting they did anything wrong!

Vic Pear was a Highland Homes Sales Agent only. He was not Highland Homes broker and was not an owner of the company.

Neither Vic Pear or the other Highland Homes sales agent at that subdivision had anything to do with what commission were or were not paid by Highland Homes. Only Mark Pugmire communicated commission payouts to the title company and only Mark Pugmire and the Highland Homes owner, Grant Lane, are responsible for not paying that agent's commissions.

Vic Pear and his partner were also victimized and shorted commissions by Highland Homes on sales they made, too.


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#4 Author of original report

Thank you!

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

POSTED: Saturday, July 03, 2010

Thank you for defending me, even though you do not know me.  I am still fighting Highland and am at this moment, gathering other Realtor's and any vendors, contractors or anyone who has been screwed by Highland to file a class action law suit.  We have documentation from many Realtor's and are ready to go to court.

It is frustrating that Highland doesn't honor it's OWN CONTRACT!  Crazy, they are the ones that offered the co-broke!  IF they didn't want to pay, then offer a lower co-broke in the contract or sell by owner with out using Realtor's! 

The sad part is that this buyer could have bought a different home, and if we would have known in advance that Highland was this crooked, we would have.  Realtor's are just like everyone else and expect to be paid for their work.  IF anyone else worked for over a year and the "employer" did not give them a pay check it would be equally as awful. 

I hope that we can end this for the sake of other Realtor's, contractors and buyers. 

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#3 Author of original report

Not Shaddy - 100% true!

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

POSTED: Saturday, July 03, 2010

As an agent for 23 years with licensing in two states, I can understand how one would read this report and question it. .. believe me I couldn't believe it either! I would never and have never done any transaction "under the table". This was a NORMAL buyer, a buyer who visited many homes and builders, who signed in like any one else- A buyer whom I worked for 18 months! We signed the same buyer-broker agreement that every other builder would have a buyer and agent sign. Arizona Title Company sent the HUD 1 -- 24 hours AFTER the closing took place, while I was in the hospital. Vic Pear @ Highland knew that I was in the hospital, and took advantage of that to close "early" They contacted my client directly, said that I because I was in the hospital, I agreed to closing early and my client was excited to move in and didnt have a reason to NOT trust them, went over and signed. When I got the HUD- the NEXT DAY (from the TITLE COMPANY-Arizona Title Agency in Mesa), they said that they would have the rest of the commission in 90 days. The thing I did WRONG was not immediately going to arbitration. Had I gone to arbitration, I could have saved my self thousands in attorney fees and time. However, I trusted them because I had never been screwed by a builder in 23 years, so I thought, well, I can wait 90 days- BIG MISTAKE! Advice to all: Immediately go to arbitration or get an attorney, they DO NOT KEEP THEIR WORD. They choose 90 days so that it would be out of the time frame for arbitration! I have never avoid taxes or anything like this. I would be happy to provide the escrow number, clients name or any information you need to PROVE this happened. My only reason for adding this report is to protect other Realtors from making the same mistake. As a 23 year Realtor, one would not expect it. Also, I had closed other successful homes with Highland. So, even if you have in the past, it could happen at anytime with this company. They are very deceitful and dishonest! If any Realtor out there is interested in a class action law suit, Let me know, we have the wheels in motion already.

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#2 General Comment

Highland Homes often does NOT pay full real estate agent commissions

AUTHOR: Queen Creek Realtor - (United States of America)

POSTED: Friday, July 02, 2010

This agent is absolutely correct that Highland Homes refused to pay the full commission! 

The selling agent did not do anything under the table as another rebuttal suggested, a person that obviously is not not familiar with the actual circumstances involved or they would not have made such a stupid comment. For that reason that person ought to be ashamed of themselves for making such an accusation with no evidence and should make an apology. It is Highland that acted shamefully and shorted a hard working agent their fairly earned commission.

Highland Homes simply informs the Title Company (a company they use on all their home sales) what commissions are being paid to the listing & selling agent and that's what the title company pays out. It is possible the selling agent did not realize they were being shorted on a commission when the agent saw the Preliminary HUD-1 Settlement Statement. It's also possible Highland changed the commission instructions after the Prelim HUD-1 was issued.

Mark Pugmire did tell the selling agent Highland Homes could not pay the full co-broker's commission because Highland Homes did not have sufficient funds.

Since then Highland Homes has refused to pay full commissions to multiple real estate agents on multiple occasions citing the same lame excuse.

In at least one case Highland refused to pay any commission at all on a home in the Circe Cross Ranch subdivision on Danish Red that Highland bought as a Fix & Flip that an agent later sold for the company. An agent that also represented Highland Homes at it's Circle Cross Ranch New Home subdivision no less! They told the selling agent that Highland did not make enough of a profit to pay the agent!

Highland also does not provide it's buyers with a typical 2-10 extended Warranty like most builders do. They only offer the minimum Arizona Registrar of Contractors warranty as the builder. If Highland Homes goes out of business then there is no warranty!

Indeed, Highland Homes has established a regular pattern of shorting real estate agents on commissions on the excuse that Highland Homes did not have enough money to pay the full commissions.

I would not recommend any agent consider selling, nor any buyer consider buying a Highland Home.

Their current mind set it to build homes as cheaply as possible (not including extended warranties is one corner they cut corners to build cheap) so they can sell at a price lower than their competition.

Anyone who buys a Highland Home will get exactly that- a cheaply built home.


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#1 Consumer Comment

Shaddy story!

AUTHOR: shiftlead - (United States of America)

POSTED: Thursday, December 10, 2009

I have been in the business for about 15 years now and have seen the good times and the bad.  In recent months/years it has seemed to be more bad then good, but for the most part I've been very lucky with whom I have done business.  After reading about your commission cluster I can't help but weigh in on the subject.  Two things became blatanly obvious from your story.

First, I have sold properties of Highland Homes to clients in the past and had nothing but success in being paid my owed commissions. So in my opionion they are a trustworthy company (have never dealt with the president in any of my deals tho).

Second, whatever it was that they owed you a commission for MUST have been a shaddy deal. I could be wrong, but in the past 15 years I have ALWAYS been paid my commission through the title company at the close of escrow.  Why was title not involved in your transaction???  Were you being paid under the counter or something...trying to avoid taxes??? You do understand that tax evasion is a far greater crime then your accusation, right? Kinda shaddy sounding if you ask me!

   

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