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South Fulton Homeowners Report Defects in New Subdivision

Homeowners in a new South Fulton, Georgia, subdivision report major construction defects, including failed inspections, faulty wiring, and code violations.

Isabella Rossi
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Isabella Rossi

Isabella Rossi is a senior business correspondent for Crezzio, focusing on real estate trends, housing markets, and personal finance. With over a decade of experience, she analyzes market data to provide actionable insights for consumers.

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South Fulton Homeowners Report Defects in New Subdivision

Homeowners in the new Rose Crest subdivision in South Fulton, Georgia, are reporting significant construction problems just six months after purchasing their properties. The issues range from non-functional electrical outlets and faulty plumbing to improperly installed HVAC systems, turning the dream of a new-build home into a source of constant stress for residents.

Key Takeaways

  • Residents of the Rose Crest subdivision in South Fulton are experiencing major construction flaws in their newly built homes.
  • Problems include failed inspections, faulty electrical wiring, plumbing issues, and HVAC systems that violate state code.
  • One homeowner discovered her house failed inspection on the same day she closed on the property.
  • The Georgia Secretary of State's office is investigating a plumber associated with the development for allegedly using a fake license.
  • The developer, Lado Banjo, has denied any construction flaws, stating the homes have certificates of occupancy.

Widespread Problems Emerge in Rose Crest

For many families, purchasing a new home represents a fresh start. However, for residents of the Rose Crest subdivision, that excitement quickly faded. Within months of moving in, numerous homeowners began discovering serious defects that raised safety and quality concerns.

Zanza Morris, one of the homeowners, found that her home had failed its inspection on April 15, 2022 — the very day she and her husband signed the closing documents. Since then, she has dealt with persistent electrical issues, including flickering lights in her kitchen, which she considers a safety hazard. According to a report from WSB-TV Channel 2 Atlanta, Morris has also filed a complaint with the state's real estate commissioner.

"They should be held accountable and fix these repairs," Morris stated in an interview, expressing her frustration with the situation.

Morris is not alone. Another resident, Amber Miller, reported that her townhome flooded shortly after she moved in. The cause was discovered to be a towel that had been deliberately stuffed into a drain pipe, indicating a significant oversight during the construction process.

Allegations of Unlicensed Work and Developer Response

The issues in Rose Crest extend beyond simple construction errors. There are now formal investigations into the practices used during the development of the subdivision. The Georgia Secretary of State’s office has launched an inquiry into a plumber who worked on the homes. It is alleged that this individual was operating with a fraudulent license number.

Zanza Morris also alleges that unlicensed subcontractors were used to build the homes, a claim that, if proven, could have serious implications for the developer. She has accused the developer of knowingly selling properties with significant defects.

Developer Denies Flaws

The contractor responsible for the homes, Lado Banjo, has publicly pushed back against the homeowners' claims. When questioned by WSB-TV Channel 2, Banjo denied any wrongdoing. "There’s no constructional flaws, we’ve given them a certificate of occupancy," he said. A certificate of occupancy is typically issued by a municipality to certify that a building complies with applicable building codes and is suitable for habitation.

Despite the developer's statement, homeowners point to clear evidence of code violations. One of the most glaring issues involves the HVAC systems. In multiple homes, the return air vents were installed directly above the kitchen stoves, a configuration that violates Georgia's state building codes. “I wouldn’t have known that unless an HVAC person pointed it out to me,” Morris explained.

New Construction Is Not Always Flawless

The problems at Rose Crest highlight a broader trend in the new-build housing market. While buyers often assume a new home will be free of issues, data suggests otherwise. High demand can lead builders and subcontractors to rush to meet deadlines, sometimes resulting in mistakes.

National Inspection Statistics

According to the National Association of Realtors, nearly 25% of new homes fail their first inspection. Of the issues identified, 38% are related to HVAC systems. Furthermore, the study notes that almost nine out of ten newly constructed homes require some form of maintenance before the owners even move in.

The author of the study observed, “With builders, subcontractors, and vendors operating at full capacity racing to meet deadlines, it shouldn’t be too surprising to learn that some details are missed during the home building process.” This reality places a greater burden on buyers to be vigilant.

How Homebuyers Can Protect Themselves

The experience of the Rose Crest homeowners serves as a cautionary tale for anyone considering purchasing a new-build property. While regulatory bodies and warranties exist, buyers can take proactive steps to safeguard their investment.

Experts recommend several key actions before finalizing the purchase of a new home:

  • Hire an Independent Inspector: Never rely solely on the builder's inspection. An independent, third-party inspector works for the buyer and can identify issues with wiring, plumbing, roofing, and HVAC systems that might otherwise be missed.
  • Verify Licenses and Permits: Buyers should confirm that all subcontractors working on their home are properly licensed and insured. A quick search on state licensing board websites can verify credentials. Checking with the Better Business Bureau for complaints is also a prudent step.
  • Review the Warranty Carefully: Most builders offer a home warranty, but the coverage can vary significantly. It is crucial to get the warranty in writing and understand exactly what is covered and for how long.
  • Establish an Emergency Fund: Even with a new home, unexpected repairs can arise. Setting aside a reserve fund can prevent a minor issue from becoming a major financial burden.

For the residents of Rose Crest, the immediate goal is to have the defects repaired before their warranties expire. Their situation underscores the importance of due diligence and highlights the potential gaps in oversight that can leave new homeowners facing costly and dangerous problems.