A “drywall activist”???

I’m probably going to regret mocking this, but until then… below is an article from an Eastern Virginia paper about the issue they are having with “toxic chinese drywall.”

One individual is quoted as a “drywall activist” which seems a bit insane to me. I could understand “pissed off home seller” or “nervous home buyer” but how do you end up with enough time to become a drywall activist? I’m just sayin…

I’m not aware of the issue in San Francisco, but I suppose it is entirely possible and realistic to think some of our remodel or new construction from around 2006 – 2007 could be affected. I’m actually curious about some of the larger projects built around then like 1 Rincon and The Infinity to name but a few…

Toxic Chinese Drywall has Ripple Effect in Real Estate Market for Home Buyers and Sellers

August 17, 2010

By Joe Lawlor, Daily Press, Newport News, Va.

Aug. 17—At first glance, it might seem like a good deal: a spacious townhome in Denbigh, 2,200 square feet with three bedrooms and three bathrooms for $217,950.

But the home at 1006 Hollymeade Circle has a problem that’s not immediately clear to someone browsing homes on the Internet—toxic Chinese drywall.

The gases released from the drywall have caused health problems and corroded wiring and appliances in homes, according to the Consumer Product Safety Commission and homeowners across the country who have the material in their houses. Many people have left their homes, and some have gone into foreclosure as they struggled to pay for rent in addition to their mortgage.

Among the myriad of issues with Chinese drywall is what to do with properties that end up back on the real estate market. Some houses for sale may not disclose about Chinese drywall, especially if the home went into foreclosure and is now owned by a bank, real estate experts say. And home inspectors do not routinely test for the drywall gases.

The listing agent for 1006 Hollymeade Circle, Kevin Pall, said Monday the house shouldn’t sell for anywhere near the listing price, because of the presence of Chinese drywall. Pall said the lockbox was removed, no one is allowed inside the property and the drywall problem is now disclosed to potential buyers.

“You would have to be crazy to purchase it at the price that it’s at now,” Pall said.

The Hollymeade Circle listing didn’t originally disclose the Chinese drywall when it entered the market on May 27, Pall said, because at that time he didn’t know that the bank-owned home contained defective drywall. The home is a foreclosure, currently owned by Bank of America, Pall said. He said he’s waiting to hear what the bank wants to do with the property.

The previous homeowners, through an intermediary, did not respond to requests to be interviewed by the Daily Press.

Signs throughout the neighborhood used to warn people that Hollymeade had toxic drywall. Those signs have since been removed.

Pall said when he found out a few weeks ago that the home might have drywall, he sprang into action. A contractor inspected the property, determined that the home did indeed have defective drywall, and he immediately included the drywall disclosure on the listing.

“No one is allowed to go inside the unit,” Pall said. “I wouldn’t have wanted (drywall problems) to happen to anybody else.”

Activists said one of their worries is that the problem would be passed along to unsuspecting new homeowners.

“The more you ignore this Chinese drywall problem, the more widespread it’s going to be, and the more people are going to be affected,” said Colleen Stephens, a Virginia Beach drywall activist who is a member of the state’s defective drywall task force. Stephens and other activists say the response by the government has been slow and weak.

When the drywall is disclosed, selling prices dip dramatically, because the cost of removing the drywall and wiring is nearly the same as re-building, according to homeowners who have had estimates done on their properties.

“It (the presence of Chinese drywall) makes the property virtually un-marketable,” said Tom Sullivan, president of the Virginia Peninsula Association of Realtors. “This is a really tough nut to crack.”

Sullivan said he would be hard-pressed to even accept a listing if he knew a home had Chinese drywall.

What might help is a list that the Virginia attorney general’s office has that shows what addresses Chinese drywall was delivered to from 2006-2009 by Drywall Venture Supply, a former Norfolk-based business. Most of the deliveries were in 2006 and 2007, when the housing market was still strong.

The house at 1006 Hollymeade Circle is on the list, having 181 sheets of drywall delivered in April 2006. The list doesn’t indicate whether the builders used the Chinese drywall in the construction of the homes, but it could be an indication that testing is needed.

Pall said the list, if it were to be distributed, should be useful to real estate agents.

“More information is always better,” he said.

What to do with the list was a topic at the Aug. 8 meeting of the drywall task force in Newport News.

Sullivan said he’s concerned the list might include homes that did not have the drywall, but the topic is sure to be discussed again.

“We need to do something about this,” Sullivan said. “There’s too much confusion out there.”

Brian Gottstein, a spokesman for the state attorney general’s office, said the attorney general’s office won’t be distributing the list because it’s not considered a public document. He said it falls under an exemption related to information gathered by the attorney general’s office for possible investigatory purposes. He said others who have the list can freely distribute it.

The Daily Press obtained the 21-page list from a homeowner who obtained it from attorneys working on national drywall litigation. To review the list, go to dailypress.com/drywall.

Del. G. Glenn Oder, R-Newport News, said he’s not sure how it should be distributed, but he believes the list should be handed out.

“People who have Chinese drywall in their homes should be told it’s there,” Oder said, comparing it to health and safety recalls. “Responsible companies let their people know when their product is defective. By whatever means possible, people need to be notified.”

Read more: http://www.houselogic.com/news/articles/toxic-chinese-drywall-has-ripple-effect-in-real-estate-market-for-home-buyers-and-sellers/#ixzz0y7Da5ZRr


  1. Elcio Pacheco Jr says

    My Name is Elcio and I wanted to forward you my story and the new upcoming epidemic regarding the Chinese drywall issue in the state of Florida.

    Today Sun-Sentinel wrote and published my storyabout my situation regarding “Sellers, Realtors & Home Inspectors conspiring to sale properties with tainted Chinese drywall without disclosing it.


    I have filed lawsuits against the sellers, and will be filing against the Realtors, agents, and home inspectors soon. As you may or may not know, Chinese drywall Manufactured in China which causes noxious and corrosive emissions of sulfur, including damage to personal property and an extraordinary diminution of value to the home. Due to the noxious and corrosive emissions of sulfur, which poses a serious health hazard to persons living in residences with Chinese or defective drywall, the residence is not habitable. My family and young son are constantly being exposed to reactive sulfur gases resulting from this Chinese drywall problem and suffering from many symptoms which include; headaches, coughing, running noses, nausea and shortness of breath.

    I have been a victim of Fraud by the sellers of the property I purchased in 03/2011 in Doral, FL. The home was built 90% with Chinese Drywall Knauf from China and it was never disclosed to me, and we never received the Chinese Drywall Addendum / disclosures. I even paid $15,000 above Market value for the property. As of 2009, the National Association of Realtors in Florida established a “Chinese Drywall Addendum” to be implemented on home sale of properties built after 2004 due to the problem. This form was never provided or included on our contract. Also, after looking through our buyer/seller contract I noticed on the sellers disclosure where it specifically states the home has no Chinese drywall or corrosion etc.

    Here are the facts:

    1. Sellers (Previous owners) are State of Florida Licensed Realtor and acted as the selling agent and received a commission on this transaction.
    2. Sellers (Previous owners) lived in the home from 03/2008 – 03/2011.
    3. The property was listed with [removed by editor] for 8 months before it was removed and re-listed by the Sellers (Previous owners) realty company employer [removed by editor] .
    4. Neighbor states that (Previous owners / sellers) approached them inquiring if their home smelled like rotten eggs or a foul smell (a year ago) before I purchased the property. Both homes were built by same builder and are identical properties, built in the same time in 2007.
    5. Sellers (Previous owners) had air fresheners / candles in every room of the house when we went to look at the property.

    I strongly believe everyone involved in this transaction conspired with one another to not disclose the toxic Chinese drywall to get deal done. The home inspector was referred to me by my realtor. After taking a look at all the documents here is what I found:

    1- My Realtor [removed by editor] – 22 years of real estate experience in the Doral/Miami area, is also a Certified Distress Property Expert. I was told by a Keyes Sales Manager that As a licensed real estate brokerage regulated under Ch. 475 of the Florida Statutes, all of Keyes sales licensees are required to complete and maintain ongoing education as prescribed and regulated by the State of Florida. All of this coursework must be completed through a Florida license real estate school. One of the required training topics of this education, as required by the state approved syllabus, is defective/Chinese drywall. Keyes monitors ALL of their sales associates for compliance of these state regulated education requirements. Additionally, any disclosure changes or updates are communicated in a timely manner to all of Keyes associates at office meetings and via internal communications throughout the year-as necessary.

    2- Home inspector – He was referred to me by our Realtor from [removed by editor] . His Company [removed by editor] was established in 2005, clearly at the time when the Chinese drywall situation was going on (2004 – 2007). Moreover, he advertises on his website and adds that they are InterNACHI certified and inspects for Chinese drywall. InterNACHI front-ends many of its membership requirements and requires that its members take many other courses soon after joining. In other words, all of their members must fulfill membership requirements before they can apply for membership. On his inspection report of my property, he took pictures of the AC & water heater, electrical wiring where it clearly shows the signs of Chinese drywall (air conditioning coils and other copper-bearing materials) copper should be color of copper and not black corroded.

    Now, we are unable to live in the home because we are getting sick. I have a 3 year old son. We can’t sell it because its toxic and we have to move and rent out another home and can’t afford to pay mortgage on this toxic home and rent at the same time. We are in a no win situation. We will probably face foreclosure and our credit will be destroyed. I wanted to reach out to your organization so see if you would like publish OUR story. If so, feel free to contact me. I want to warn others in Florida of this growing problem that will affect many people if we don’t put a story out there about whats going on. My Attorney claims and fears this will be the next trial and tribulations regarding the Chinese Drywall issues in Florida.

    Thank you,
    Elcio Pacheco Jr.

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