Matt and Jill Spaulding were hunting for a new home in the spring of 2022 when an internet ad for a spectacular $1.6 million, four-bedroom, three-bath property in a Long Beach neighborhood caught their eye.
“Stunning remodel!” gushed the listing published by Redfin, Truila and other real estate companies. “Pack your bags and move in. Almost everything is new. There is so much to love about this home.”
The Spauldings, who moved to Southern California from San Jose, toured the 2,530-square-foot home offered by Newport Beach house flipper RS Real Estate Plus and were, indeed, smitten.
The lush lawn, remodeled kitchen and bathroom, recessed lighting, fresh paint, new roof and other upscale amenities checked all the boxes for the young family. The Spauldings quickly offered $100,000 above the asking price and, within a month, closed the deal.
Dream turns to nightmare
However, the ink was barely dry on the escrow papers when it became clear that a nightmarish money pit lurked within the walls of their dream home.
Bathroom lights flickered, an army of subterranean termites marched along walls and the ceiling oozed a mysterious red liquid from the debris-clogged drain of a malfunctioning air conditioning system.
Jill Spaulding, 38, said that even more troubling was the asbestos, mold and fungus throughout the house and an improperly installed water heater that vented dangerous carbon monoxide directly into the floor of her and her husband’s bedroom.
“This story is so much worse than a bad flip or a contractor cutting corners,” she said. “It is a story of our family being exposed to many toxic health hazards that we may be dealing with for years to come. Quite frankly, we still are not sure how we are still alive after our hot water heater situation.”
For about two months, the Spauldings shuttled between hotels, Airbnbs and rental properties because they didn’t feel safe in the home. Since May 2023, they have been renting a house in Los Alamitos.
“The lack of stability and being constantly moved to unknown places affected my children’s sleep and health and had psychological effects,” said Jill Spaulding. The children are now ages 5, 3 and 7 months.
Lawsuit: Problems concealed
The Spauldings have filed a lawsuit alleging that the home’s many structural problems were concealed by Raafat Salem, chief executive officer of RS Real Estate Plus, and Lisa Richmond, a broker with its affiliated company, RS Prime Properties.
“The amount of hardship that this flipper and his businesses have created for our family cannot be put into words,” Jill Spaulding said. “The effect this has had on us physically, financially and emotionally is indescribable.”
The Spauldings are suing Salem and Richmond, along with their Realtor, Anne Hulegard of RE/MAX Estate Properties in Redondo Beach, for negligent misrepresentations and fraud. The suit requests that the court rescind the purchase contract between the Spauldings and RS Real Estate Plus and order restitution of $1.6 million plus interest.
They allege Hulegard was aware of RS Real Estate Plus’ massive unpermitted construction work and failed to notify them despite disclosure documents from Salem stating …read more
Source:: The Mercury News – Entertainment
