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Centex Homes Hits a New Low, Literally

Friday Jan 29 2010

Picture 10  Centex is a subsidiary of Pulte Homes. Last Sunday a thirty foot retaining wall split. This caused the evacuation of 91 homes with 25 homes declared unsafe to occupy. Interestingly the residents have discovered they signed a compulsory arbitration agreement when they bought the homes. Now, what to do? Centex is monitoring the situation. Well that's reassuring, eh?

While I am no expert on this particular situation one would think this is an ideal case for the Ethics class. Who are the stakeholders?  A short list might include

Homeowners

Mortgage Company

City Building Inspection, Permit Dept

Centex Engineers and Attorneys

Hmm, would greed be an issue here?  OR is this just an error of er ah design?  Who is responsible?  What constitutes justice for the homeowners?  Does the City bear some responsibility?  What should Centex be obligated to do for the homeowners?  Oh, what about the 25 famiilies that cannot move back into their homes?  Do you have a spare couch at your house?

There are numerous articles about this and they continue each day. Let's discuss it on BB in the Ethics class. 

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2 responses to “Centex Homes Hits a New Low, Literally”

  1. Erin De La Rosa Avatar
    Erin De La Rosa

    See this website for unethical behavior regarding Centex. Exerpt from website:
    NO INTENT OR INCENTIVE TO PRODUCE A QUALITY PRODUCT
    “The home-building industry generally advocates and promotes contractual requirements that openly display their indifference to delivering a quality product. Evidence of this is that most home builders include this shameful statement in their contracts to build a home: “…Builder makes no warranty, express or implied as to quality, fitness for a particular purpose, merchantability, HABITABILITY or otherwise…” Centex has gone a step farther with its no shame policy. Their take- it-or-leave-it unilateral contract agreement requires that unless the buyer agrees to give up his or her right of implied warranties of good and workmanlike construction and habitability, they will not sell them the house. Now Centex is shamefully asking the Texas Supreme Court to give their endorsement of the practice of substandard home building with little or no warranty.”
    http://www.hobb.org/content/view/384/309/
    I wonder if the homeowner’s will have any recourse since they signed this type of agreement?

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  2. LeAnna M Nesbitt Avatar
    LeAnna M Nesbitt

    Centex had a compulsory arbitration agreement so that they would be protected from any legal circumstances that would develope. That way they would not have to go to court and be liable for damages. As a result this is exactly the builders point of view. Most home buyers are inexperienced… Centex builds all over the U.S. Its unethical for them to build homes and have home owners suffer a lost due to the geological formations of the builders sites. The problem is a failure on the part of the developer to make some geological inquiry that may have avoided unstable conditions. Once a contract has been signed then the responsibility for any structual damage due to natural or shifting of the ground, really becomes the liability of the homeowner. Therefore the homeowner has to be protected themselves through a insurance policy. The home owner should then file a claim. Example a flood, the insurance issues a check for natural disaster damages. **The city should have never allowed to have homes built on the aquifer in the first place….

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