NC homebuilder ordered to pay $250K or go to jail — how one couple’s dream home became a violation-riddled nightmare

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NC homebuilder ordered to pay $250K or go to jail — how one couple’s dream home became a violation-riddled nightmare

Jake and Anita Muehlbach have been stuck in homeowner hell since they first moved into their brand-new home in Chatham County, North Carolina in 2020.

Despite passing every county inspection during construction, the Muehlbachs started noticing problems with the home soon after moving in. Jake told reporters he tried to work with the builder to get these issues resolved but that only made matters worse.

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He also notified the county of his concerns, and it was then that government officials uncovered at least 15 safety issues and code violations in the Muehlbachs’ home.

When they couldn’t get their builder, Jeremy Lindley of Lindley Builders Inc., or his insurance to cover the issues with the home, the Muehlbachs took him to court. In March 2023, a judge ordered Lindley Builders to pay them $225,000 for breach of contract and warranty.

But as of January, Lindley had yet to pay what the Muehlbachs say is now close to $250,000 due to interest.

“We’re going on almost five years of dealing with this at this point. So we would just hope that this pressure from the court would maybe make him comply and pay this judgment so we can all just move on,” Muehlbach

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Huge costs and unpaid legal judgment

The code violations county official found spanned everything from failing to damp-proof the foundation; using ledger strips too wide for the nails that caused floor joist issues; and placing beams incorrectly, which created a hump throughout the house, to the undersized rafters causing the need for a new roof section and reframing.

While a judge found in the Muehlbachs’ favor in March 2023, they say the $225,000 they were awarded wouldn’t nearly cover the estimated $400,000 required to correct everything. With numerous unknown problems, many won’t try to repair the home and have instead recommended a full tear-down to rebuild.

“My engineer recommended destructive inspections, which means tearing out walls and floors to see what else is wrong … It’s suspected we’ll find more issues when that takes place,” Jake explained.

Lindley’s contractor’s license was suspended, and the Muehlbachs have since taken him to court to obtain his company’s financial records. When Lindley failed to present them, a contempt order was issued and he was directed to pay $14,700 in legal fees to the Muehlbachs or face jail time, which his lawyer told ABC11 he has done.

However, the $225,000 judgment is still unpaid.

The couple don’t know what’s next.

“We should have moved into this house and had equity,” Jake told ABC11. “Now, we’ve spent our life savings between building the house and paying for this lawsuit. Now we have a home that’s … not worth the land it’s sitting on, still paying Chatham County taxes.”

Read more: Jamie Dimon issues a warning about the US stock market — says prices are ‘kind of inflated.’

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How to protect yourself

The Muehlbachs’ story highlights the importance of being proactive and taking extra care to protect what is likely to be the biggest investment in your life. Of course, this can cost more upfront, but the additional assurance and peace of mind can be well worth it.

If you’re planning to hire a building or construction company, be sure to do your research and understand your local building codes, required permits and zoning regulations. Plan ahead with extra funds for unexpected costs.

It can also be prudent to:

Hire an engineer during construction. They can inspect your home throughout its construction or renovation process, so you’re more confident in the county or city inspection results.

Create a log of every existing issue. Verbal communication with your contractor about problems is important, but written documentation — with photos for proof — is what holds up in court, should it ever come to that.

Work with a construction lawyer. Get absolutely everything in writing. A lawyer specializing in construction can help ensure your contract is crystal clear and everything is properly documented. Review it in detail, including timeline, budget and exclusions.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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