Feb2010 Houston Builder

H O U S T O N

BuilderFEBRUARY 2010

The Official Magazine of the Greater Houston Builders Association • www.ghba.org

What's InsideRemodelors Council Brings Home the CADRE Award for 7th Year in a Row

Custom Builder Contracts Get "Remodeled"

Immigration—An Ongoing Challenge

Astros Join HomeAid to Mark Hunger and Homelessness Awareness Week

Lean&Green

2010 GHBa President Kevin Holland advises Members to Stay:

http://thebetterhomeshow.com

Greater Houston Builders association – BuildinG a Better Future | Houston Builder | FeBruarY 2010 3

FEATURES

February 2010|Volume 23|Number 2The Official Magazine of the Greater Houston Builders Association

Departments6 President’s Message8 Government Affairs22 People & Projects28 Education Calendar29 HOME-PAC Roster 30 New Members & Renewals31 New Member Profiles34 Montgomery County Division 36 Bay Area Builders Association38 Remodelors Council40 Housing Activity Survey40 Sales & Marketing Council 42 Associate Council43 Final Thought46 Calendar of Events

Upcoming Events7 Forecast Luncheon19 New Home & Remodeling Show 23 Spring Fling Golf Tournament

Photo Album12 Astros/HomeAid "Take a Minute" 26 BBQ & Wild Game Cook-off37 BABA Casino Night/Installation

6 President’s MessageIf you're not at the table, you could be on the menu. Make your voice heard in the industry, and take advantage of your collective strength within the organization.

8 Government affairs UpdateThe results are in! See the new City of Houston leadership lineup, and consider what you can do on the political front to help keep the Houston homebuilding industry strong.

10 Houston remodelers Did it again!The GHBA Remodelors Council was honored with two CADRE awards in the categories of Public Relations and Community Service. This is the seventh year in a row that the council has achieved this prestigious accolade.

12 Homeaid Houston newsThe Houston Astros teamed up with HomeAid Houston to host a special "Take a Minute" event at Minute Maid Park. The event commemorated annual Hunger and Homelessness Awareness Week.

14 realtor® CornerPositive changes to the Custom Builders Council contracts render them more consumer and Realtor friendly.

16 Benefit Homes Update Highland Homes sells its Benefit Home in the community of CInco Ranch. The Woodlands Development Co., also a Benefit Homes developer partner, makes a generous donation to Texas Children's Hospital.

18 Strong Leadership = a Strong associationAs we look forward to the year ahead, GHBA would like to introduce you to some of its key members—the incoming board of directors.

43 Immigration—an Ongoing ChallengeAs the emphasis on enforcement shifts from the individuals to the employers, here are some tips for staying in compliance, and what to do if you are contacted by Immigrations and Customs Enforcement (ICE).

Advertising/Editorial Information:Contact Brittany Feldmann at (832) 215-7232 or [email protected]. Houston Builder encourages members to submit articles for publication. Articles should relate to members and to the homebuilding industry. For questions or to submit a letter to the editor, email [email protected].

H O U S T O N

Builder

ON THE COVERPhoto by DAWN BIRDSONG, Company company

Happy New Year from Cervelle Homes! As we look forward to 2010, Incoming GHBA President Kevin Holland (right) and partner Jeff Payson (left) encourage association members to stay active, stay "at the table," and keep their businesses lean and green.

CONTENTS

Greater Houston Builders Association MissionWe are the voice of Houston's residential construction industry, serving our members and the community by education and advocating professionalism and quality housing.

9511 West Sam Houston Pkwy north, Houston, TX 77064(281) 970-8970 phone; (281) 970-8971 faxwww.ghba.org

FeBruarY 2010 | Houston Builder | Greater Houston Builders association – BuildinG a Better Future4

COUnCIL PreSIDenTS & COMMITTee CHaIrSAmbassador Committee – Denny PattersonAssociate Council – Jamie WalterBenefit Homes Committee – Don KleinCodes & Standards Committee – Dave YelovichCommunity Developers Council – Ed TaravellaCustom Builders Council – Kevin FrankelEducation Committee – Karen AcordGovernment Affairs Committee – Lisa ClarkGreen Building Committee – Bruce OkruhlikHOME-PAC – Jim HolcombHomeAid President – Chris Denison Membership Committee – Keith RodgersMulti-Family Council – Steve HefnerPast President’s Council – Lisa ClarkRemodelers Council – Wayne BallRetention Committee – Karen Travelstead Sales & Marketing Council – Colleen EllisonTrade Show Committee – Beverly JordanVolume Builders Committee – Steve Von HofeWorkforce Housing Committee – Zack Burghli

GHBa DIvISIOn PreSIDenTSBay Area Builders Association, Rusty DeBordeMontgomery County Division, Scott Stevens

GHBa STaff MAIN PHONE: (281) 970-8970

Executive Vice President and CEO Toy Wood, JD, CAE - ext. 150 [email protected] President/Government Affairs Director Adam Aschmann - ext. 140 [email protected] Affairs Coordinator Meredith Spencer - ext. 142 [email protected] Coordinator LeAnn Corley - ext. 170 [email protected] Brittany Feldmann - (832) 215-7232 [email protected] Director Lisa Pepitone - ext. 110 [email protected] Coordinator Vilma Bonilla - ext. 111 [email protected] Events Director D’Nita Kuhn - ext. 130 [email protected] Shows Director Lyn Foster - ext. 131 [email protected] & Council Director Carrie Saxon - ext. 171 [email protected] and Career Services Director Peggy Means - ext. 161 [email protected] Lisa Gentry, CPA - ext. 120 [email protected] Accountant Lincoya Ferguson - ext. 121 [email protected] Assistant Liz Rimer - ext. 141 [email protected] Manager Donna Buenik - ext. 100 [email protected] Houston Executive Director and CEO Bette Moser, CAPS, CGP, CGA - ext. 145 [email protected] Relations Director Terry Swenson - (281) 382-9977 [email protected] Director of Marketing & Special Events Lea Pipitone - [email protected]

PreSIDenTIaL aPPOInTeeS

KevIn HOLLanDPRESIDENT

LISa CLarKPAST PRESIDENT

JOHn MaDSen, CPaTREASURER

TOY WOOD, JD, CaeExECUTIVE VP & CEO

Kathy Howard, Masco Environments for LivingLee Kirgan, CGA, Slone Lumber CompanyScott Mixon, Bayway HomesDenny Patterson, Airtron HoustonScott von Gonten, CGA, CGP, Conserve IQ

GHBa BOarD Of DIreCTOrS

GHBa’S TaB DIreCTOrSAdam Bakir, PE, GMBBrian Binash, MIRMLisa ClarkKC Cox, CGA, CAPS, CGPMike Dishberger, GMBRussel GarrisonTeague HarrisSuzi Haynie, CGA, CSP, CGB Kevin HollandJeff Hunt, GMB, CGR, CAPS, CGP Barry KahnAndy LoydEddie Martin, JD, CPA, GMBBurk MorelandBill Shaw, CGR, GMB, CAPSKathleen StadlerAaron Wallrath

TaB aLTernaTe DIreCTOrSKathy HowardKeith RodgersScott von Gonten, CGA

TaB LIfe DIreCTOrSRandy Bayer, GMBRandy BirdwellRonny CarrollJonathon Casada, GMBJim Frankel, GMBMike KarmCharlie LeyendeckerEmilio Silvestri

GHBa’S naHB DIreCTOrSRandy Bayer, GMBBrian Binash, MIRMBob Birner, CGR, CAPSJonathon Casada, GMBLisa ClarkKC Cox, CGA, CAPSMike Dishberger, GMBSuzi Haynie, CSP, CGA, CGBKevin HollandJeff Hunt, GMB, CGR, CAPS, CGP Barry KahnKathleen StadlerScott von Gonten, CGA, CGP

TaB'S naHB DIreCTOrSEddie Martin, JD, CPA, GMBDavid Walton

naHB LIfe DIreCTOrSRandy BirdwellStephen Hann, CGR, GMB Mike Manners Tom Richey, MIRM, CMP Emilio SilvestriLarry Stege

MIKe DISHBerGer, GMBVICE PRESIDENT

Jennifer Arriaga, Array Custom Homes Inc. Beth Avalos, Floors Inc.Wayne Ball, CAPS, CGR, Lone Star Building & Construction Svcs Inc.Lisa Clark, Ryko Development, Inc. Warren Clark – BMC SelectKC Cox, CGA, CGP, CAPS, Weyerhaeuser CompanyDavid Daniels, 3D BuildersRusty DeBorde, Texas Signature BuildersMike Dishberger, GMB, Sandcastle Homes, Inc. Colleen EllisonRoger Farrow, GMB, City Homes of HoustonKevin Frankel, Frankel Building GroupSteve Hefner, Camden Development Will Holder, Trendmaker HomesKevin Holland, Cervelle Homes Inc.Gary Huff, CGA, Gary Huff Photography Jeff Hunt, GMB, CGR, CAPS, CGP, Brothers StrongJohn Madsen, Parmet, Chapman & Madsen, PCRon Martin, Grand View Builders Harry Masterson, Terramark Communities Mike Moody, Newmark Homes Houston Keith Rodgers, CSP, CGA – HomeTeam Pest DefenseTerry Shuffler, Trendmaker HomesEmilio Silvestri, Silvestri Investments Inc.Kathleen Stadler, Eric L. Davis Engineering Inc. Scott Stevens, Stoecker Corporation Ed Taravella, TARACORP Sean Vitelli, GMB, MBA, CAPS, CGA, Bonded Builders Home Warranty Jamie Walter, Shamrock Equity Advisors Mark Welch, David Weekley Homes Jeff HUnT, GMB, CGr,

CaPS, CGPSECRETARY

OFFICERS AND LEADERSHIP


18TH

AN

NU

AL

June 12-13, 2010Reliant Center

* Generate immediate sales* Develop qualified sales prospects* Generate mailing list leads* Enhance your image* Create product awareness* Introduce new products or services

Download the floor plan & contract (with pricing) here:

www.GHBAshows.com

Members receive

15% offDiscount applied to full booth rate; non-members 10% off.

800-572-0011


Builders, think back to when you first joined the association. What were your reasons for making the investment? Was it the insurance discount? The educational

opportunities? The legislative updates and lobbying efforts? But wait, you’re forgetting one of our greatest assets – the associate members!

In these lean times, with fewer employees on staff and more headaches to deal with, it’s easy to get wrapped up in the day-to-day. But keep in mind that the GHBA associates are here to help you; don’t be afraid to lean on them. Why not ask one of your vendors to help you research cost-saving measures, product enhancements or new services on the market? Could you spend five minutes with a new member at a networking event, if it meant saving your company time and money?

For example, a few years back I was concerned about the fluctuation in copper prices and how it affected my cost per house. So I set up a meeting with my plumber, Cliff Mountain at Bac Trac Plumbing. We discussed several different options, and he introduced me to the PEx Plumbing System with Manabloc. The PEx system lowered my costs, and I didn't have to worry about the same price fluctuations of copper. But not only that, the system is simple to install, less likely to leak, and features individually labeled shut-off valves that make it much easier to service if there are problems in the future. It also includes a full 10-year warranty. You won’t find that with copper plumbing! I saved money and my customers were happier as well. My point is, Cliff had the knowledge to help me make an informed decision on cost and product, while keeping the quality I desired. He did all the homework for me, and my business benefited as a result.

When you “support those that support our association” you get more for your money. Associate members are more qualified and informed about our industry because that is their main focus. So talk to your associates, and take advantage of their knowledge and expertise. Use GHBA members for

all of your projects. If one of your vendors is not a member, ask them to join. Every member counts, and each addition to our roster makes us just a little stronger.

I recently was invited to a brainstorming session by some of our associate members. The panel included:

Mike Dishberger, GHBA vice president •Jeff Hunt, GHBA secretary •Toy Wood, GHBA CEO •Lisa Clark, GHBA past president •Greg Tomlinson, Builders Post-Tension •Warren Clark, BMC Select •Kathy Johnson, Bath & Kitchen Showroom •Maggie Medellin, Ferguson Enterprises •Keith Rodgers, Home Team Pest Defense •Ricki Abney Sr, Houston Post Tension •Tony Rocha, Huber Engineered Woods •Kathy Howard, Masco Environments for Living •J.R. (Salty) Thomson, Pella Windows & Doors •Mike Bernal, Sherwin-Williams Paint Co. •

The purpose of this meeting was to discuss what we can do in this tough market to encourage dialogue between builders and associates. Remember, our associates are struggling too. And without them, there would be no association. We need them on our side.

So builders, take a minute to talk to an associate at a networking event, thank our sponsors, respond to their phone calls, or sign up for a speed-selling event. Our associates can help you save money and stay on the cutting-edge of homebuilding technology.

Why choose a member? It seems simple to me. You should select the most qualified people to help you with your business. You can keep your operation lean, but still acquire all the knowledge our associates have just by giving them the opportunity to discuss their products with you. Surround yourself with good GHBA members and you will be successful. Don’t be the weakest link.

Associates—Your Greatest Ally

By GHBA President KEVIN HOLLAND, Cervelle Homes

Save time and money; let associates do your homework.

PRESIDENT'S MESSAGE


GHBA Houston Builder 2- 2010

PullDark Bronze

KnobSatin Nickel

KnobAntique Nickel

Visit our award

YOUR SOURCE FOR BUILDERS HARDWARE

Andover KnobAntique Brass

Camelot HandlesetAntique Pewter

Towel BarChrome

Euro Paper HolderSatin Nickel

DOOR HARDWARE CABINET HARDWARE BATH ACCESSORIES

Towel RingOil-Rubbed Bronze

http://jthomasdoor.com

http://www.bmcselect.com


By GHBA Director of Government Affairs ADAM AScHMANN

On behalf of the GHBA Political Action Committee, HOME-PAC, I would like to congratulate Houston’s new mayor and council members on their hard fought victories. The association looks forward to working with each of them over the next two years!

The following is a list of your City of Houston leadership.City of Houston Election results •Mayor: Annise Parker •Controller: Ronald Green •District A: Brenda Stardig •District B: Jarvis Johnson •District C: Anne Clutterbuck •District D: Wanda Adams •District E: Mike Sullivan •District F: Al Hoang •District G: Oliver Pennington •District H: Edward "Ed" Gonzalez •District I: James Rodriguez •At-Large Pos. 1: Stephen Costello •

The Industry Eye on State & Local Issues

GHBA is hard at work monitoring issues at both the city of Houston and at the state level. Find out what's happening, and how you can be involved.

You Have a Voice with the GAc!If you have questions about this article or would like to get involved on the Government Affairs Committee, call (281) 970-8970, ext. 140 or email [email protected]. The next meeting will be held Wednesday, February 17 at 3 p.m. at GHBA offices.

GOVERNMENT AFFAIRS


KR

AFTSMAN

www.kppe.com1-800-451-4869

800.451.4869281.353.9599

www.kppe.com

HoustonDallasAustin

SanSan AntonioCorpus Christi

Proudly serving Texas & Louisiana

Water Play Equipment, Playground Equipment,Skate Parks, Site Amenities, Fabric Shade Covers, Park Pavilions, SportingEquipment, Safety Fall Surfaces, DesignAssistance Services, Equipment Installation

KRAFTSMAN

At-Large Pos. 2: Sue Lovell •At-Large Pos. 3: Melissa Noriega •At-Large Pos. 4: C.O. "Brad" Bradford •At-Large Pos. 5: Jolanda "Jo" Jones •

GHBA Government Affairs is looking forward to an incredible 2010. With the change in city leadership, we will work hard to continue building strong relationships. And amazingly enough, it’s already time to start getting ready for the 2011 legislative session! At the same time we must make sure that codes are on the right track throughout the region and that Green Built Gulf Coast is up and running smoothly.

The Government Affairs Committee will meet January 20 at 3 p.m. at the GHBA offices. GHBA’s past president, Lisa Clark, will be the new chair and without a doubt will lead the way as we move through the trials and tribulations the year may bring. Join us, and be a part of addressing the industry’s needs in the most effective, efficient means possible.

HOMe-PaC aSKS:Could You Run for Office?

HOME-PAC was created to support pro-housing candidates for elected office, and your trustees do a very good job. GHBA extends a great big ‘thank you’ to everyone who contributes to HOME-PAC, and we look forward to exceeding our contribution goal of $125,000 in 2010.

However, we still need to find OUR candidates. Take this year’s City of Houston election as an example. Although we support candidates, they are not homebuilders. Outside of Steve Costello, no one running had ties to the homebuilding industry, so our industry will likely not be a priority to any of them when it comes time to vote and make critical decisions.

Consider running for office. Your industry needs you, and you can have a huge part in keeping the building industry favorable in Houston. If you are interested please contact the Government Affairs Department. Our members are our greatest asset. We can make the biggest difference by electing pro-housing candidates to office. And who better to take that role than YOU – our homebuilders.

http://www.kppe.com

http://www.strucsure.com


The Greater Houston Builders Asso-ciation Remodelors Council (RMC)

was honored with two awards at the 2009 Council Award for Demonstrating Remod-eling Excellence. The awards—known in the industry as the CADREs—were an-nounced during the NAHB Remodelers Annual Gala at the 2009 Remodeling Show in Indianapolis on October 29.

The awards were presented by Jarred Roy from the Pella Corporation, title sponsor, and NAHB Remodelers Chair Greg Mie-dema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Arizona.

Winners in eight categories were honored for outstanding contributions and per-formance at the local council level. The Houston RMC was recognized in two of the eight categories – Community Service and Public Relations and Promotion.

The CADRE Awards, judged by members of NAHB Remodelers’ board of trustees, are presented each year to local remodelers councils and individuals whose work at the local council level exemplifies the best practices of the remodeling industry. The CADRE is the NAHB Remodelers' highest national award that a local remodelors

council can achieve. The Houston RMC has been a pillar of the annual awards, winning at least one CADRE every year since 2003.

“Local NAHB remodelers councils across the nation nurture excellence in profes-sional remodelers with programs, educa-tion and leadership development,” said Greg Miedema, CGR, CGB, CAPS, president of Dakota Builders, and 2009 chairman of the NAHB Remodelers. “The CADRE awards celebrate their achievements and raise the bar for local excellence.”

Houston Remodelers Bring Home the CADRE Award for 7th Year in a RowGHBA Remodelors Council honored for community service achievement and public relations excellence at 2009 CADREs

GHBA remodelers accepted two CADRE awards at the NAHB Remodelers Annual Gala. Houston remodelers were honored in the categories of Community Service and Public Relations. Pictured (left to right): Rob Hellyer, CGR, GMB, CAPS, Premier Remodeling & Construction; 2009 RMC President Allen Griffin, CGR, GMB, CAPS, CGP, Gryphon Builders; Amy Robinson, Fort Bend Publishing; and 2010 RMC President Wayne Ball, CGR, CAPS, Lone Star Building & Construction Services Inc.

Barbara Bell Lewis (right) came out to support the Houston remodelers on their big night. She is pictured with her daughter, Amy Robinson of Fort Bend Publishing. The company produces the annual Houston Remodeling Guide for the RMC.


Community Service ProjectRemodelers of the Greater Houston Builders Association remodeled the House of Tiny Treasures, an early childhood development center serving homeless children and families. The large-scale remodel included leveling the house and replacing foundation, installing insulation, replacing flooring, painting the interior, building a ramp, building new stairs with handrails, and more. The facility now allows needy families to obtain services for their children while parents attend to education and employment train-ing to get back on their feet.

Presenter Jarred Roy applauded the council for “donating time, materials and expertise to improve the lives of people in need. Your work provides valued respite for families experiencing tough times.”

Public Relations and PromotionThe GHBA Remodelors Council won its second CADRE for publishing an annual consumer magazine and promoting its members. First created in 1997, the Houston Remodeling Guide magazine has grown to 66 pages targeted to homeowners considering remodeling. The magazine includes articles and photos from council members, including information for consumers about the remodeling process and member directories.

Roy commended the Houston RMC for “educating consumers with a beautiful magazine about remodeling that provides ideas and resources to undertake a successful home remodel.”

For more information, visit www.nahb.org/remodel.

ABOUT NAHB REMODELERS: NAHB Remodelers is America’s home for professional remodelers, representing more than 20,000 remodeling industry members of the National Association of Home Builders (NAHB). Founded in 1982, the organization provides information, education and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. Its membership incorporates 145 local councils in 43 states.

LOCAL 2701 Regent Blvd. #100 | DFW Airport, TX 75261 | 972.456.0935 | S of I-635 & Royal Ln. exit, near N Entrance of DFW AirportA R I Z O N A C A L I F O R N I A C O L O R A D O N E V A D A N E W M E X I C O T E X A S U T A H

Experience a vast selection of porcelain, glass, ceramics and natural stone that will truly elevate any design. At Arizona Tile, there’s a world of surfaces waiting to be explored. Through our exclusive relationships with select quarries and suppliers, you will discover stunning surfaces you won’t find anywhere else on Earth.

B R I N G I N G Y O U T H E M O S T

E XT R AOR DI N A RY S U R FAC E S O N E A RT H .

w w w . a r i z o n a t i l e . c o m

© 2010 Arizona Tile, LLC. All rights reserved. Logos, marks and taglines appearing herein are trademarks or registered trademarks of Arizona Tile, LLC.

Vibrant natural hot springs in Yellowstone National Park, Wyoming.

Blue Louise granite from Arizona Tile.

http://www.arizonatile.com


Minute Maid Park became the playing field for 20 families working through homelessness, as HomeAid Houston and the Astros kicked off Hunger and Homelessness Awareness Week (HHAW) with a joint event themed "Take a Minute." Astros Jeff Bagwell, Lance Berkman, Hunter Pence and new Astros Manager Brad Mills joined the fun by giving autographs and photo opportunities. Families were treated to a Thanksgiving feast, tours of Minute Maid Park, base running, autographs and gift bags.

“Partnering with the Astros to raise awareness about Houston’s homeless is a wonderful experience,” said Bette Moser, HomeAid Houston executive director. “The organization’s professionalism and true understanding of what homelessness means have added a new dynamic to HomeAid’s efforts.”

“Hunger and homelessness impact thousands every day in Houston,” said Marian Harper, vice president of the Astros in Action Foundation. “Our goal with the Take a Minute Day was to draw attention to their struggles and to ask Houstonians to Take a Minute to rethink what homelessness really looks like and what we can all do to help.”

The Take a Minute event was a

fun way to help mark the annual HHAW, co-sponsored each year by the National Coalition for the Homeless and National Student Campaign Against Hunger and Homelessness.

“The average homeless family is a single mother with two children under age six,” said Anthony Love, CEO of the Coalition for the Homeless in Houston. “This isn’t a matter of choice for them but circumstance. It just takes a minute to make a call to a homeless agency, or make a donation to help.”

HomeAid Houston, a GHBA charity, has been building transitional housing for the homeless since 2003. Through its efforts and the donations by hundreds of association members, 360 beds have been added to Houston’s homeless community providing care for 4,200 adults and children.

For more information on HomeAid visit www.homeaidhouston.org. For more information on HHAW visit www.nationalhomeless.org.

Take a minute. Go to www.homeaidhouston.org

ASTROS JOIN HOmeAId TO mARK HUNGeR ANd HOmeLeSSNeSS AWAReNeSS WeeK

Photo 1 (at top): HAH board member Beth Avalos, Floors Inc, with her guest family.

Photo 2: Junction Jack bonds with a young HomeAid Houston guest.

Photo 3: Cara Berkman; Marian Harper, Houston Astros; and HAH board member Anthony Love,

Coalition for the Homeless of Houston and Harris County.

Photo 4: Kathleen Stadler, Eric L Davis Engineering, gets a Lance Berkman autograph.

Photo 5: Lea Pipitone, HAH, encourages her little runner.


Take a minute. Go to www.homeaidhouston.org

CALeNdAR Of eveNTS

Take a minute2009 was a whirlwind year for HomeAid Houston. An enhanced partnership with the Houston Astros and the new Take a Minute marketing campaign provide a tremendous opportunity for the charity to broaden its name across the nation. Examples of the use

of the new “Take A Minute” tag line are Take a Minute to imagine your child sleeping on the street; Take a Minute to help someone less fortunate; Take a Minute to visit www.homeaidhouston.org. It is HomeAid’s hope that this powerful statement will speak to many different audiences.

Spreading the excitementThe above photos capture the excitement and interest in HomeAid’s Take a Minute event. Television stations were on-hand to interview Astros players Lance Berkman, Hunter Pence, Jeff Bagwell and new manager Brad Mills. The players also filmed public service announcements for HomeAid.

COmINGSOON

Dedication of Gracewood at Wanda Lane with Remodeler Captain

Brothers Strong

feBRUARY1

HomeAid Care Project for Covenant House,

with Remodeler Captain Charanza Contracting Inc.

COmINGSOONKey Presentation for Project Playhouse by

the Hickman Family to Gracewood at Elmview

APRIL8

4th Annual HomeAid Charity Golf Tournament, sponsored by Land Tejas

Development Co.

Our goal with the Take a Minute Day was to draw attention to the struggles of these families, and to ask Houstonians to Take a Minute to rethink what homelessness really looks like and what we can all do to help. Marion Harper, Astros in Action Foundation


GHBA's Custom Builder Spec Contract "Remodeled"Positive Changes Make Contracts More Consumer and Realtor Friendly

REALTOR CORNER

In the interest of transactional trans-parency and with an awareness of

consumer skepticism in our current eco-nomic climate, the GHBA Custom Builders Council successfully took on the daunting

116 N. Rogers St.Waxahachie, TX 75165

TOLL FREE: 888.287.7414

www.hbisonline.com

People have trusted Ronny Robinson as a builders insurance pro for more than 15 years. He begins with trust and

builds from there.

HOME BUILDERS INSURANCE SERVICES

Insurance Custom Built For

You.

Home Builders Insurance Services are industry leaders in providing builder’s insurance programs. At HBIS we work

hard to protect what you have worked so hard to build.

challenge of rewriting the Residential Sale Contract for Newly Constructed and Completed Residence on the Builder’s Lot (commonly known as the Custom Spec Contract) and related addenda. The coun-

cil’s objective was to clarify language often misconstrued and to simplify the “contract to close” terms of buying a newly built custom home.

Although there are many changes in out-line and terminology, this article will focus on the seven changes to the contract that will significantly affect—and probably, ease—the transaction between the builder and the consumer. In turn, this will make the Realtor’s role more educational than adversarial.

Resolution of DisputesThe new GHBA contract clearly states the order of preferred steps for conflict resolu-tion to be:

a. Hold informal discussionsb. Mediationc. Mutually agreed arbitration d. Submit the issue to the American

Arbitration Association for binding arbitra-tion if no agreement can be reached once the above steps have been taken.

This, Paragraph 11b, as well as the Ad-dendum for Dispute Resolution aligns the builder’s preference for mediation with that of most consumers.

Home Evaluation/AcceptanceThis October 20, 2009 revision provides for an evaluation period (Paragraph 3) in which the buyer is encouraged to conduct third party inspections, secure an appraisal, review the survey, check the builder’s title and seek financing within a specified time. Should the buyer choose to have an unrestricted right to terminate as well as the evaluation period during the stipulated time period, she may pay for that right as stated on the Termination Option Exhibit E. The option fee is not credited to the sale, and termination during this option period would result in the return of the earnest money only. This inspection time and op-tion period are similar to those in the Texas Real Estate Commission (TREC) contract and should be familiar language for Real-tors assisting in a new home transaction.

http://www.hbisonline.com


REALTOR CORNER

Builders will find in due time that the option period serves many positive pur-poses in that money is committed for the option, inspections and perhaps an ap-praisal up front with a very short period before the earnest money “goes hard.” Most issues are re-solved and not left to marinate in the full length of the contract.

The TREC contract added an option pe-riod in 1997, much to the chagrin of the Realtor community. This option is now an integral means to smoother transactions with more defini-tive timelines. It is recommended that the option fee reflect a per diem or portion of the daily costs, and that the time period should be no longer than the number of days it takes to get the home inspected. Ten to 14 days should suffice.

Title CompanyPurchase Price and Deposits (Paragraph 2c) states that the purchaser “selects” the title company since she is paying the premium for the Owner’s Title policy (Para-graph 7). This is a clarification of the Real Estate Settlement Procedures Act (RESPA) requirement regarding title company selec-tion. However, your listing representative should mention to the prospect or their agent that often builders have previously opened title when purchasing the lot, and by remaining with this title company, the buyer could benefit from a slightly less ex-pensive and streamlined title procedure.

ClosingFor the first time in a GHBA custom con-tract, there is a closing date (Paragraph 7) with acceptable delays referenced in Ex-hibit B. Reasonable, established timelines enable all parties to plan better and to be more accountable to task completion in a timely manner.

Article contributed by Pattie Huey, GRI, GREEN, director of the Builder Marketing Division for Prudential Gary Greene Realtors. Huey also serves as a director for the Houston Association of Realtors and is active on the GHBA Custom Builders Council, Sales and Marketing Council and the Education Committee. She can be reached at [email protected].

Risk of LossIn older versions of the Custom Builders Council contract, only the builder had the right to terminate in case of catastrophic damage to the property prior to closing. The new language clearly gives the builder and the purchaser the same rights regard-ing their termination options under these conditions.

Limited WarrantyNew language states that the Limited Warranty will be purchased by the builder (not just a “document provided”) and then delivered to the purchaser at closing. This stronger language should address the specifics of what a buyer will receive at the closing table regarding the limited warranty, a sample of which should have been provided and reviewed prior to this closing date.

Brokerage CommissionThis paragraph should be a welcome change to all buyers’ agents and builders alike. Paragraph 13 now allows for the buy-er’s agent’s name, the broker’s name and license number as well as earned commis-

sion amount to be inserted in the body of the contract. This clarifies buyer’s rep-resentation at the time of contract, alleviating any com-plication regarding the old addendum that was sometimes misused, neglected or added after the selling price was es-tablished.

These new con-tract terms will be greatly appreciated by those Realtors whose businesses rely heavily on the custom new home sales market and

may have been hesitant to use the older versions which were less consumer-friend-ly. Local builders, Realtors and the GHBA legal counsel consolidated their efforts in the creation and implementation of these changes with their sole focus being a smoother, more transparent transac-tion with the consumer’s interests well represented.

If the TREC New Home Contract (completed construction) is used in the purchase of a new custom home, there are also new GHBA addenda now available with matching language to the terms stated above. These are the Addendum to Earnest Money Contract and the Addendum for Construction Related Activities and can be provided by your builder or a GHBA Real-tor member.

Builder/Realtor EducationThere will be classes held soon on the new GHBA contracts for Realtors and builders coming to developments in many parts of the Greater Houston area. Look for infor-mation to follow.

Feb2010 Houston Builder

Documents

Transcript of Feb2010 Houston Builder