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KB Home





KB Home
KB HomeConsumer Complaints
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News
KB Home Executives Quit Over Stock Options Probe
Texas Court Invalidates KB Home's Forced Arbitration
KB Home Customers Find FTC Penalties Inadequate
KB Home to Pay $2 Million for Violating Home Warranty Agreement

Janet of Daytona Beach, FL June 23, 2009

We purchases our house in Feb 2006 from KB Home Directly (the same year it was built). After only three years of KB building the house, we had a huge leake coming from the back porch of the house.

Per inspection there were several cracks found in the stucco on the rear wall of the house facing the back porch. Also the water was coming from a window on the same side of the house. It was also noticed that the Grading (the landscaping) is in the same level with the finished floor which was a factor in the leake. When I contacted KB Home Customer Care, they sent a person named Drew to inspect. After the inspection, I was told by Drew that the house is three years old and needed maintenance. He said that the stucco cracks are not covered under warranty because they are not wider than 1/8".

He also said the house is a concrete block and all houses in the area are built the same way wher the end of the stucco is below the dirt level. I explained to Drew that this is a 395,000 three year old house and it should not have leakage problems that soon. It certainly appears to be a problem of cheap building material and a poor workmanship used in building the house.

Genoveva of Lochbuie, CO April 21, 2009


i purchased a house built by KB home in Lochbuie Co in may 2008. This individul Jon K was the broker who sold us the house. He was lying to us all the time,then when we came to move to this house,the back yard has all the easemants for 3 houses,plus our back yard looks like a river in the rain time. We cant use the back yard,we kept complaining to the builder since 2008 oct. but they keep teling us that we cant do anything to fix the yard,because even so is ours,for them is not ours,belongs to the whole community,but we paid for it.

The builder did not aloud us to do anything,which is weird,and the back yard started to look more like a river,water from rain coming from the houses around us directly to our or not ours back yard,now we have in the midle of back yard erosion and the water keps diging . We went to the builder,hired an inspector which recomanded to the builder to do all the adjustments,but the builder refuses. We are going crazy dont know what to do? Any idea??? Thank you

I have high blood presure and i am sick,nervous because i cant put them to understand that the back yard belongs to us,we paid for it,but KB is using us and the back yard for their needs.

Mandi of Houston, TX April 7, 2009


My husband and I decided we were going to buy a KB Home because of the great price they advertised and the beautiful model home we looked at. We went into the office, chose our lot, signed some papers and were told we needed to do our design appointment before anything could be started and if we cancelled before this time we would receive our earnest money back 2000! We went to the design center and realized everything was an upgrade, down to the brick! We hadnt even finished with standard upgrades and we were already up 35,000! Obviously we knew we were getting screwed and we couldnt afford the house anymore so we cancelled. Now they wont give my money back!

KB Homes said I dont have a valid reason to get my money back. What? Nothing was ever even started on the house and we were never even approved for the loan. 1000 of the earnest money was only because we were using an outside lender. I have been fighting with them or trying to fight with them for 2 months now and no one will return my phone calls. They suck you in with false advertisement, then steal your money when you realize you cant afford it. I wont give up, I will get my money back, even if it takes me picketing in front of their sales office.

Deborah Ann Haase of Mentone, CA March 24, 2009


I purchased the first home sold in Silver Springs II in Mentone, CA this past July (2008). I specifically requested the smallest home, was shown the plots display in the sales office, and was told the smallest home built would be 2263 SQFT. I recently found out they are splitting my community in two (Silver Springs III) and selling houses that are 1400 SQFT. According to San Bernardino County Permits and Planning, they have always had this ability, but never disclosed this change.

This will reduce the value of my home -- just purchased this past July -- by around 50,000.

Kericia E. Smith of Fort Worth, TX March 21, 2009


This letter will serve as notice that the home I purchased from KB Kracker Box Home on September 30, 2003, has numerous construction defects, some of which may be major that have not been corrected under the terms of the contract or the requirements of the FTC Consent Order.

I am a 100% Disabled Veteran that served my country 3 years in the United States Army and 12 years in the Army Reserve. I have been diagnosed with Post Traumatic Stress Disorder (PTSD). I used my VA Benefits along with the Texas Veterans Land Board (TVLB) to purchase a new KB Home on September 30, 2003. Also, I am on a fixed income.

Bruce Karatz, the past CEO/President of KB Home resigned in disgrace and shame for back dating stock security. Recently, Karatz agreed to a settlement with the Security Exchange Commission (SEC) that included a relatively small inconsequential fine of 6.7 million in compensation and interest to KB Home and a 480,000.00 penalty to the U.S. Treasury which is a slap in the face of all KB Home shareholders and KB Home owners left with broken down defective homes.

Also, to add insult to injury, prior to Karatz's resignation he was awarded 245 million golden parachute and since he was fined to repay 6.7 million, therefore, KB Home has more than enough funds available for me to enter into a Buy Back Agreement within the next 30 days.

Enough is enough, my mother and I have been deprived of the full enjoyment of my home, which has left us both emotionally and financially drained. We will no longer be subjected to further discomfort or paying for mistakes that were not of our making but that of KB Home. On May 29, 2008, I filed a Notice of Protest with the Tarrant Appraisal Review Board. My original market value of my home was 172,200.00; my market value has been reduced by 72,200.00 and my current market value is 100,000.00. Nevertheless, my pay off amount on my home is 158,877.32 and this leaves me hanging upside down in my mortgage payments.

Since our economy has eroded we as home owners and consumers are going to hold all CEO's and President's of the big Corporations accountable for their deceitful actions. It is my desire to testify before our United States Congress in Washington, DC in reference to the substandard building of all KB Homes and third party inspectors allowing home owners to move into homes that can not stand for 1 year without the seams coming apart.

Association of Veteran Women, Inc. (AOVW, Inc.) believes that women understand women and are better at assisting one another, therefore, we are dedicated to providing healing, hope and support for tomorrow to active duty women, veteran women and disabled veteran women. AOVW, Inc. will provide an opportunity for women who have not been given a chance to speak up, speak out and speak on various issues for women who has served and are serving in the United States armed forces in defense of our beautiful country.

AOVW, Inc. will organize speaking engagements and round table discussions with local, state and federal government which we will discuss VA Home Buying Benefits, Home Owners, Home Builders, binding arbitration, Texas Residential Construction Commission (TRCC) and any other home buying topics via Internet, newspaper, radio and television to make sure our issues are publicly known.

In reference to articles on the internet, former KB Home CEO Bruce Karatz indicted on fraud charges linked to stock option backdating Karatz, 63, faces up to 415 years in prison if convicted on all charges. These reckless actions are a combination of arrogance, ignorance and greed (AIG); and he has been caught like the cat that swallowed the canary and deer caught in head lights.

Tiffany of Alameda, CA March 20, 2009


We purchase the new home with KB on december 2008 the house is not ready to move in until july 2009. My husband just lost a job we notify KB. KB division manager contact us after I sent a lot email out to all KB department to as for help, he said my husband have 21 days to look for job or eles we lost the deposit, It on the contract I should know about it. I don't think KB treat us fair, Maybe I don't speak english well that why he does't care because I can't do anything, I can't do anything further. I need some help from attorneys to advise what can I do next.

Darlene of San Antonio, TX March 8, 2009


We purchased our home in San Antonio. We were told this was a upscale community. It all started when we decided to use K.B.refered Countrywide loan. The person there let our paper work sit on her desk for weeks (this delay cost us a higher morgage rate). Got that done the day after we closed our water pipe came apart between floors. Flooding out the down stairs. Called K.B. told them I wanted them to gut the areas that got wet. Not knowing there is a home lemon law. They could have bought back my home at that time. When I showed up to see how much work was done. I came into my house to find large blowers on the sheet rock.

I went to the construction trailer and insested they pull the sheet rock down. At that time I started taking pictures. This also delayed our being able to move in. We lived here for about 5 month when it was brought to our attention, that the green belt behind us is a flood plan. K.B. takes pride in that dry creek. They have a model of it and is selling it as a nature trail. K.B don't you know your suppose to stay away from dry creeks in case there is flooding up stream. A few months later K.B. started to build new model homes. They look nothing like our community. They changed our name (again not informing us) They waited a few week then put a sign out starting in the low 90's. This is a joke. We paid over 200,000.00 for our home.

We called a meeting and one of K.B. advisors was asked when did they know that they where going to change the community? His response was about 6 months ago. Isn't that illegal? Don't they have to disclose when they are going to change the make-up of the community. K.B. just keeps lying. Through the months and getting to know our neighbors many of us have construction defects. I took a corner of my foundation off with my hands. Nail pops, cracks going up the bricks and the foundation. We have lots of cracks through out the house.There is even a home that was built about 2 years ago. They found out (because mud and other stuff) came out of the sinks and tolets. They never installed a sewer pipe from the home to the road.

Pure neglect hiring labor that really has no experience. K.B. has a pattern of doing this. Building the larger nicer homes, then bringing in much smaller homes and riding on our equity. We already lost 40,000.00 because of K.B. bringing in the smaller cheaper homes. You would think our home value has gone down because of the economy. Not true our area has had a 2 1/2% growth.

K.B. has not taken any action to rebuild the community back to the way they had sold to us. We want K.B. to BUY BACK OUR HOMES. Texas needs to have laws and regulations the home builder needs to follow. As we are learning. Home builders can build with any stander they want. There are no laws on the books. So they just keep getting away with taking advantage off home buyers who just want a nice home. Not one that is falling down in as little as a year time.

Kericia E. Smith of Arlington, TX March 6, 2009


The home I purchased from KB Home on September 30, 2003, has numerous construction defects, some of which may be major that have not been corrected under the terms of the contract, the requirements of the FTC Consent Order. This letter is in no way intended to be a formal demand under the Residential Construction Liability Act (RCLA) but to give KB Home the opportunity to enter into a Buy Back Agreement with me within the next 30 days. Immediately after KB got my earnest money, a senior KB consultant told me that I needed to buy gutters as an upgrade to protect my investment if I wanted my foundation to last. That should have been a warning that buying a KB Home was not the right thing to do, and that the intent of KB was to deliberately design and build a substandard foundation for my new home.

From the time I moved in the following problems have been on going. Wind and sand come through windows. The brass metal bar that holds the carpet in place sticks into our feet and the carpet sheds. Doors close when opened, baseboards are cracked in bathroom hallway, bedroom and living room and the shelf is falling in the master bedroom closet. The marble floors have cracks in the mortar joints, countertops and kitchen cabinets are uneven, and the walls bow, are lopsided and have nail pops. The fireplace mantle is coming apart from the wall, and birds are nesting in the fireplace. The hardy plank is splitting apart at the seams, and the garage floor is cracked and chipped. The exterior trim around doors and windows are cracked and splitting, brick work is lopsided and there are cracks in the brick. The driveway is split and chipped, trash is mixed in the soil, cement has been dumped throughout the grass particularly along the left (east) side of my home near the foundation.

The land also slopes drastically away from the foundation creating a slope that is excessive over short distance without an adequate retaining wall. As a result, when watering the grass the water runs down the street and sidewalk creating extremely high water bills. The foundation is in need of at least 9 piers on the right (west) side of my home. My computer monitor loses power, the washer is not receiving proper water pressure and/or electric, light switches pop when lights are turned on and light bulbs corrode and explode. Whenever the AC or Heat unit comes on lights flutter. The AC and Heating unit has never worked correctly (extremely high electric bills) and is not working on the first floor at this time. The zone control panel was replaced 3 times and the AC and Heating unit is noticeably not adequate for our 2 story home.

Finally, since September 30, 2003, it was confirmed that the damper motors was installed crossed on the AC and Heat unit. My family has been deprived of the full enjoyment of my home, which has left us both emotionally and financially drained. We will no longer be subjected to further discomfort or paying for mistakes that were not of our making but that of KB Home. 

Maria of San Antonio, TX February 27, 2009


We move from California to San Antonio Texas, Bought new kb home in 2007. Community was supposed to be an Up Scale community. It is not, we paid over 200 thousand for our home, now they discontinued our home models, and are building 90 thousand dollar homes! Not to mention the house has several construction deffects. KB should not be able to do this kind of business, NoN ethical!

Whole community has same issues, we wqant KB to buy our homes back, They lied, mislead us! Please Help! Our property values are going down and our foundation is falling apart!. Our community name was changed w/o informing us! We have been on the newa and also we have gone to our Commissioners court !

Our home went down in value. We were lied to, Misslead into buying into an upscale community. We are exausted and very concerned. Several construccion defects including several cracks in our driveway and inside garage. We have been Robbed at enjoying our new home! This shoul of been a wonderful experience, but it has been horrible!

Tom of Mooresville, NC February 8, 2009


When we first looked at kb home everything seemed great, staff was nice, builder was nice. But then when our house was almost complete, our builder was fired, our sales girl was fired, both incredibly nice, since then its been hell, we have been through three different builders, 3 differnt sales girls, two different painters and we have only been living here 4 months.

the second builder tried to change our closing date two days before we were supposed to close because he had a dentist appointment! are you kidding me!!!! he was the rudest, incompetent person i ever encountered. since we have been living here, now keep in mind its only been four months, we have a ceiling leak, a river runs through our backyard because of a poor drainage system, a water leak in our front yard, which we have left about 15 messages and still has not been fixed neither has our ceiling leak, ive left messages with their home office still nothing, i guess ill be swimming in my house soon!

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