Mercedes Homes Changed Price of Home minutes before Sale Contract Jacksonville Florida

This is a dispute about misinformation and a last-second price change just minutes before the sales contract was signed. I have attached the time-line, and the ethics standard I believed broken from the National Association of Builders "Code of Ethics".

5/1/2004 Visited Oakleaf Plantation and reviewed Mercedes and Admiral Homes models

5/6/2004 - Susan and I decided that we would pursue two homes to be built in Johns Creek in St. Johns county. The Mercedes Homes Paradise Cove (French Country plan on the Mercedes Johns Creek glossy) on lot 252 or the 3644 Plan from Admiral Homes on lot 200.

5/7/2004 Contacted Jeff Elliot from Mercedes to let him know I would like to meet the weekend of 5/8/2004. Our first choice was the Mercedes home; thus we visited Oakleaf Plantation Paradise Cove model again to review the options that we might choose. At that model, the sales agent did not know if the French Country would be built in Johns Creek, so she contacted Robert Goettlicher at the Mercedes model at South Hampton to verify.

5/7/2004 - Sue Sutphin verified in a phone call to Robert that the French Country plan would be built in Johns Creek and thought the price was $296,900.

5/8/2004 Was contacted by Jeff that he was not available on 5/8/2004, but was available on 5/9/2004 at 9 a.m. Sid told Jeff that he was intending to do a contract that weekend. Jeff agreed on the time, and also to meet with Jeanine Wells, the Sutphin's agent, at the same time.

5/8/2004 We visited the South Hampton Mercedes Model and asked if anyone selling in either John's creek or South Hampton had the elevation plan for the French Country. Robert Goettlicher nor Amanda Wallen could not produce the French Country plan, but Amanda provided an options sheet for Johns Creek.

5/9/2004 Sutphin's and their agent met with Jeff as agreed at 9 a.m. We reviewed, and choose all options by 11 a.m, and total price was about $322,500; however Jeff said some of the options would need to be chosen at the Mercedes design center. Jeff began creating the paperwork for the contract, and said that Jeanine could go as she has a noon appointment, and Jeanine did not need to be their at that contract signing. He said it would take him 45 minutes to finish the contract, and that the Sutphin's could leave an return at noon to sign the contact. The Sutphin's returned at noon, and Jeff said there was a mistake, it was his fault, but the French Country Plan would be $11,000 more.

5/9/2004 The Sutphin's felt that the price was $322,500 and should stay at that amount. Jeff said that he was sorry, but he could sell that good lot to someone else. Sid Sutphin executed a lot binder of $500 on lot 252 through 5/12/04. Jeff also said if I needed to wait until Saturday (5-15-04) until the Sutphin's agent was available again, he would do so.

5/12/2004 Amanda Walley e-mail's me and says she does not have the elevation plans for the Paradise Cove, but the model was in Oakleaf. I wonder if she even knew she was e-mailing me. This is damaging evidence that the sales staff at Johns Creek was unprepared to sale that plan.

5/12/2004 Spoke to Donna Sadowski, VP of Sales Said that Jeff may have made a mistake, but we do not reciprocate for those mistakes. Also verified that the actual elevation that was on the Mercedes glossy for John's Creek was called the Traditional (Elevation G). However, the Sutphin's have an elevation sheet with elevation G, at it looks nothing like the home on the Mercedes glossy; thus still more confusion. Donna did say she would call Jeff, and confirm to him to hold the lot binder through Saturday. She said Maybe Mercedes Homes is not the builder for you if we are having these communication problems in the beginning. Asked for Cora Johnston's contact information, but was told by Donna that Cora was out.

5/13/2004 Left a message for Cora Johnston, but was told she was out.

5/14/2004 Left a message for Cora Johnston. Sent an e-mail in the afternoon.

5/14/2004 Spoke to Cora Johnston, President of Mercedes Homes Sales Division and part owner of the company. She said that all they could do is say sorry, and it would be Unethical of her to sell a home to me for less money than to someone else. Also said that is sounds that Mercedes may not be the builder I want to go with. However, I had a choice to make between the Paradise Cove at the quoted price, or another less expensive elevation.

5/15/2004 - Decided again to execute the contract at 5 p.m.. Jeanine called Jeff to confirm the time and Jeff said that 5 p.m. was fine; however, Susan, Jeff Elliot, and Jeanine would meet at the Oakleaf Plantation Model at 2:30 p.m. to verify what is standard and optional in the model.

5/15/2004 At 12:55 p.m., received a call from Jeanine who spoke to Donna, who said they did not want to build for the Sutphin's. This means then, that both Donna and Cora Johnston broke another promise to hold the lot through Saturday. If they did not intend to sell to the Sutphin's, why would they hold the lot, and why would Jeff Elliot make an appointment at 5 p.m. to execute the contract.

5/20/2004 Mercedes Homes Johns Creek web site still has no elevations posted for the Paradise Cove.


I feel there are 4 main reasons why Mercedes did not want to execute the sales contract.

1. Jeff Elliot did not want to share his sales commission with Jeanine Wells.

2. On 5/9/2004, Jeff knew that the top price for the Sutphin's about $322,500. He tried several times to suggest more options, even after we hit the $322,500 number and Sid Sutphin, said we will not add any more. I believe he wanted another buyer that would add more options and would not be represented by a Buyer Agent.

3. Jeanine Wells is an experience buyer's agent not only in the sales process, but also the construction process. Considering the speed at which homes are being constructed in St. Johns Country, quality could suffer, and Jeanine may have questioned the construction quality.

4. The Sutphin's showed they were not a passive customer. They would challenge Mercedes senior management regarding their sales policies, and Mercedes would rather lose a sale to the Sutphin's, than be challenged later if problems occurred in building process.

Exerts from;

Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS

Article 2
REALTORS shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law. (Amended 1/00)
 Standard of Practice 2-1
REALTORS shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. Article 2 does not impose upon the REALTOR the obligation of expertise in other professional or technical disciplines. (Amended 1/96)

Article 9
REALTORS, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing. (Amended 1/04)
 Standard of Practice 9-1
For the protection of all parties, REALTORS shall use reasonable care to ensure that documents pertaining to the purchase, sale, or lease of real estate are kept current through the use of written extensions or amendments. (Amended 1/93)


Article 11
The services which REALTORS provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.
REALTORS shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. (Amended 1/95)
 Standard of Practice 11-1
When REALTORS prepare opinions of real property value or price, other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall include the following:
1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and intended user(s)
5) any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect (Amended 1/01)

Sid
Jacksonville, Florida
U.S.A.