Emily Sortor  |  April 27, 2018

Category: Consumer News

Young happy couple shopping for new homeA class action lawsuit filed against Lennar Homes, a company that builds and sells residential units, claims that the company’s model homes mislead consumers.

Plaintiff Mohamed Elhendi claims that he was misled by Lennar Homes, who advertised model homes that were significantly different from the units actually for sale.

Elhendi alleges that Lennar Homes uses model homes to advertise different units actually for sale, claiming that the model homes are representative of the for-sale units. Allegedly, Elhendi decided to purchase multiple residential units based on the belief that they would be almost identical to the model home units.

The Lennar Homes class action lawsuit claims that the model homes advertise a certain layout of the bathroom and shower entrance. After the plaintiff purchased the residential units, he allegedly discovered that the homes he bought contained a radically different bathroom layout and shower entrance.

According to the Lennar Homes class action lawsuit, the bathroom in the model home was ADA compliant but the bathroom and shower in the purchased units were not ADA compliant, and Elhendi would have to spend thousands of dollars to make the spaces compliant.

Elhendi alleges that this practice of advertising a home with one set of layouts and features and selling a home with different features is a scheme that Lennar Homes uses to mislead many potential homeowners.

The Lennar model homes class action lawsuit claims that the goal of the scheme is to incentivize consumers to purchase residential units for a higher price than they are worth, or to purchase residential units that they otherwise would not purchase.

Specifically, Elhendi states that had he known that the residential units he bought had the characteristics that they actually had, as opposed to the ones advertised by the model homes, he would not have purchased the unit. Thus, he claims that Lennar Homes profited from intentionally falsely advertising its residential units.

Allegedly, Lennar Homes specifically advertises that the model homes are “substantially similar” to the residential units for sale. The Lennar class action lawsuit states that photos of the model homes are used to show the characteristics of the residential homes, and are provided to prospective buyers specifically for this purpose.

Elhendi believes that thousands of consumers were misled in similar ways, and proposes a Class of all consumers who were tricked by the advertising of the model homes into buying units that were not “substantially similar” to the model homes.

He seeks damages for himself and on behalf of other similarly affected California residents, citing financial injury done by Lennar Homes’ practice. He states that he lost “money [and] property, time, and attention” as a result of Lennar Homes’ practice.

Elhendi argues that unless the court forces Lennar Homes to cease their practice of falsely adverting their residential units, the company will continue to do so, and will thus continue to injure consumers. He states that Lennar Homes’ practice violates the California False Advertising Act, and constitutes unfair, unlawful, and fraudulent business practices.

The plaintiff is represented by Todd M. Friedman of the Law Offices of Todd M. Friedman PC.

The Lennar Homes Model Homes Class Action Lawsuit is Mohamed Elhendi v. Lennar Homes of California Inc., Case No. 30-2018-00988051-CU-NP-CXC, in the Superior Court of the State of California, County of Los Angeles.

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50 thoughts onLennar Homes Class Action Says Model Homes Deceive Consumers

  1. Paola Alliegro says:

    We were buying a house from Lennar in Brookshire, TX and they told us that we weren’t approved 4 days before the closing, and they not consider a penalty for closing late because we have the opportunity to get approved with another option that also the loan officer confirmed us. I went to talk to Lenore Kimmel, Director of Sales, and she told me that unfortunately the company does not take the human part, and they are a business, and it was a record of sales and prices getting up and they can not sell the house for the price I was working under contract with them for more than 5 months.

    They let me wait until 4 days before closing (with everything in boxes, with 4 kids, with $2K earnest given to them) to tell me that they will sell the house at THE NEW PRICE!! not even giving me the option to buy it at the new price. it is totally unfair and not correct way to do business.

    It have to be control over this company ASAP. If someone knows where or to whom I can write and ask for help I will really appreciated.

  2. Clara says:

    I live in Orlando FL, we have a townhouse from Lennar. Everything started on July 10th at 12 noon, all of a sudden we had no power only partial, just on the stairs, no power on refrigerators, no AC no power upstairs, no water heater, no stove, only in the bathroom. I also have a video I can send as well. My husband is an electrical Engineer and he was able to figure out the issue was due to loss of one of the phases. We waited all the weekend since we called OUC and they said right away that this falls on Lennar and HOA and it’s nothing to do with them. So we had to wait until Monday to contact Lennar and the HOA, and HOA said it’s nothing to do with them. And Lennar said we were out of warranty, I was so mad because my property is only 2 years and 3 months and I did not buy a property to give me trouble after two years. We then called again OUC and we probably did this like 8 times, they kept insisting it wasn’t them. The manager at the HOA sent an electrician to come over because she couldn’t stand to see us going through this. But he left after 10 min of searching and couldn’t find the box.

    The house infeed power is usually two lines of 120 volts each. The issue was that one of them had no power 0 volts therefore part of the house had power and other areas did not. Also none of the electrical appliances which require 220 volts could work for example AC unit, water heater, stove, etc.
    The power company came to check and they said it was not their lines since they are only responsible up to the transformer and the the builder ran the main lines from the transformer to splitters (multi taps) and distributed to each townhouse.
    In fact the electrician found the box in the back of the townhouse between our house and our neighbors house. The damaged was the multi tap connecting both our neighbors and our house.
    The electrician and the power company technician both explained that the multi tap installed by the builder was Inadequate since it is not water resistant and the box was under ground and it gets water. They both said the builder was supposed to used the correct multi tap water resistant or a above grown electrical box.
    Also the main line connected to the multi tap was loose and our neighbors lines as well which was a major safety issue affecting both townhouses. I called the orange county builder inspector and an inspector came over to inspect the damage. He said that from what he saw they’ve use the wrong equipment, A person from OUC said that they can get sue due to this because it is extremely dangerous and that NO one will sumerge their hand in there because they would be dead if they due since it’s not waterproof. The Electrician was in shocked when he saw everything. Lennar came over an said they will be changing every part, but to be honest we don’t feel secure in this house anymore. It’s a shame this company is getting away with all this crap. I also submitted to the Best business bureau.

    1. Clara says:

      We were without power for 8 days. This should be considered ilegal. We had 3 kids at home.

  3. Marilyn Swertfager says:

    Has class action been settled. In NC And have a Lennar home. Purchased 1 year ago and they will not fix anything under warranty. A lot of big issues and all Lennar and their HOA company are worried about is I will not put my garbage cans in my garage. So they are going to start fining me 25 a day.

    1. Brett says:

      Where in NC? We bought in Brunswick county

  4. Maria says:

    I have purchased a townhouse in Orlando FL from Lennar on May 2019 and I am also totally disappointed with the construction they do. What I find out is that they hire contractors who bring subcontractors and no one knows what they do. Their crew members are working with people who can’t even speak English nor can do a proper math to take measures. That is way the sloppiness and messiness of their work. The carpet upstairs was all over with paint and glue, the sink disposal had a awful noise and when the plumber came we find out that the workers grind a hard plastic and trowed paint inside. All doors are not aligned, the front door had a big gap that frogs invaded my house. Now, my major nightmare started when they start to build another row of six townhouses next to my house. Because of the noise and dust I decided to go back to Virginia and stay with daughter until this construction is over. On one of the videos I saw their crew members taking water from my house and they left the water running for several days that my bill came triple as it was before. Also, I got them plugging an extension cord in my front door so they can use my electricity. After I complained to Lennar I had the construction manager Timothy MacFarlane to call me the same day and after I explained what’s been happening he told me that he was going to be more than happy to cover my damage. He send me an email asking me to send my three last utility bills and the videos so he can see the men who did the trespassing to my property which I did the same day. But this doesn’t have integrity because he got silent and he did not reply to my last message.
    If anyone is considering to buy a house please do yourself a favor DO NOT BUY FROM LENNAR!! you won’t have a good experience and they cover up to each other.

    1. Anne Melilli says:

      Boy you’re not kidding. They waited till 2 days before closing to tell us that we were in a flood zone. The only (unsigned) survey map We were given show we were NOT in a flood zone. Their newly “signed” survey map dated 1-1/2 months before our closing shows that we are. Had to get flood ins added at an extra $600/ year.
      Then 1 day before closing and after they received our wire transfer they sent us a document to sign that said there was an easement on our property and if they had to tear up our driveway to get to the electrical we’d have to pay for the repairs. This is sheer madness. They are the scum of the earth and pull all kinds of devious crap on unsuspecting buyers. Will it ever end?!

  5. Carmelitana says:

    Does anybody have information on the North Las Vegas homes? They are advertising them as townhomes but they are condos in reality. This is deceitful practice.

  6. Sondra says:

    Good for you for taking a stand against this corrupt company!
    I’ve have a similar experience here in FL- any news of class acts being filed in Orlando area?
    They’ve been treacherous and deliver low quality products l. Now, they are giving me a hard time with my warranty repairs – some of which were never fixed from the original inspection

    1. Jim says:

      Sondra, please call me at 754 367 4174 about Lennar. My name is Jim

    2. Alaine Williams says:

      Alaine Williams it doesn’t matter where you purchase your Lennar home, we all have the same issues.

      1. Ferydoun Darshad says:

        My name is ferydoun darshad I need a lawyer lennar home and their mortgage company made me wait for months till the day of closing then they told me my credit was not approved and kept my $5000.00 deposit my number is 361 541-2349

  7. Dempsey Petty says:

    I recently purchased a Lennar home in RENO, NV – late September, 2019. They built three beautiful model homes, but I chose a non-model floor plan (having viewed active-construction site of actual lot).

    There were many sketchy points with Eagle Mortgage, regarding appraisal, rushing me to close early – which I resisted – and wiring escrow funds.

    At pre-inspection walk through, the house had a trailer-quality look to it, with DOZENS of poor craftsmanship notations. Lennar rep assured me of 100% satisfaction guarantee.

    At closing inspection, a few items had been addressed, but most were not, at which time the same Lennar rep told me essentially to table all complaints until the 30-day post move in “follow-up.” And even then, he set repairs ANOTHER month out (late November).

    The chief complaint now is that the Family Room three-window panels are askew (badly aligned) by five full inches. When Contractor dropped by to view, he began hypothesizing that it was done purposefully because of framing warping – as he explained the framing was completed DECEMBER 2018, and sat all winter, warping, so that a building inspector likely told them they HAD to mis-align windows…

    Lennar reps began discouraging correction due to the enormity, “that’s going to be a huge under-taking” if you want it fixed, essentially threatening to disrupt and displace me at my own expense. They claim the entire back wall will have to come down – but when pushed, said it will be a two-day job. …. IF I want the same promised-quality home as neighboring residents.

    Of course, I do.

  8. Devon Stewart says:

    How do I join in on this.

  9. Megan says:

    Poorly made homes. Very Loud garage doors when opening/closing them. Lennar Has sprayed fertilizer without posting anything. until recently after complaints. *Only one time* ( June 2019 ) .. which isn’t safe for dogs!

    Lennar sprays “once a week” for cockroaches. But somehow there are still SO SO many cockroaches at night while walking my dogs. ( I have pictures ) I’m assuming they come from the Astoria by the many complaints of the residents there. Dating back to 2013 I believe. ( refer to Astoria reviews ) So of course they will spread outside!! (Lennar doesn’t spray around Astoria. They do there own)

    Residents pay off the security to park there cars on the street. Probably because they parking rules are not practical. For this many people crammed into a small area. They tow certain people and others never get towed. Horrible all around

  10. Evelina Pandji says:

    Hi, I just purchased a unit by Lennar at Central Park West, Irvine, California. I am a foreign buyer who purchased it for a holiday home and for when we go there for business trade shows every year. They kept postponing the closing suddenly several times. They even cancelled a closing 10 days before I left for LA to close escrow even though I had previously cancelled my ticket the month before also when I asked if they were going to postpone again and no one replied to my question even till I already purchased a ticket for October 2018. They already asked me for proof of funds and in my country, where interest rate was 6.5% then and 7.5% now, I still decided to gather the money to send it to my account in good faith for the Oct. closing. So I lost a few months’ interest which I could have earned. When they postponed till end of November, I requested to postpone because I had several international trips planned but they refused saying Lennar had their fiscal year rnd closing. In the end I acquisced , cancelled my new ticket from a different airline again and changed all my schedules and meetings and trips. So just before I left for Europe on a business trip in mid November- I was going to transfer all the money which was requested to be already in escrow by mid November, something happened which made me postpone the wire, it turned out I was told they were postponing again for 2 days, till 31st of November. I thought it strange so I decided to postpone transfer till I get back on the 20th. On the 19th, I felt the urge to email my sales and asked some questions regarding utilities… she gushed out that she’d been emailing me an didn’t know I changed phone number, that escrow will be postponed again for about 2 weeks ( imagine she turned down my request to postpone till after mid December or mid Jan, 2019, now she one sidedly cancelled saying the city did not issue the certificate of occupancy. She said if I sign escrow by 31st of November, my balance for the tiles I upgraded to (about $7000) will be paid for by Lennar. Of course I took it since I’d lost quite a bit of money, lost of lot of time off work changing schedules so many times. But if course it was under the inpression that the certificate was going to be issued around 2 weeks after even though she won’t give concrete dates. Lennar also sold homes with Rockefeller as model homes and misrepresented that the quality and equipments will be the same as the rockfeller show units. Later on when I saw the poor quality if tge tiles, of course I had to upgrade. But worst is the shower tiles. We didn’t think they would look so cheap and my husband was shocked. Also the washer/drier were totally different, not the front load I expected. To cut it short, she kept saying seems it looks like I’d definitely be able to have tge unit ready by the time my family got there on the 21st of December. I thought she wasappeasing me that it’ll definitely be ready. On the 16th evening my time, she emailed and told me I should have plan B and book hotel, if agreeable with me, she’ll try to ask her manager for $250 / nught hotel expenses. Lho… I got 4 uncancellable tickets for a very high season… I was undecided what to do… we lost chances of making other plans, already told our staff we were taking time off work. Our driver already asked for leave the day after we were supposed to leave. So I said the hotel rooms were not enough… etc etc… I am hoping someone with the same problem would come out and sue them in a class action as in the Elhendi case. When I asked how come we were told quality will be as in the Rockefeller unit, she just said that’s not true, the sales representative who told me to look at the model homes right next to their sales office was not their staff. I was confused. She was working there and she was the one who got me in touch with the marketing agent. I had really suffered financial loss, list opportunities, lost working time running around changing schedules and meetings. I had to spend our ‘expensive’ vacation as homeless who moved from one hotel to another to kill 12 days of boredom. Even went to vegas on Christmas when everything even the shops and mist restaurants were closed, because, we didn’t want to get depressed when everyone in the Lennar community were on leave. Ended up, we got our keys 3 days before we left LA, couldn’t furnish the home and won’t gave a place to stay in March for our trade show if we don’t pay someone to arrange shipments if furnishings. And… tgey washed their hands by offering a month’s imbursments plus a little bit more if I sign a full release. We did not even get a chance to call for repairs of broken stuff in the unit because when we took the keys, the unit was not cleaned up yet . By the way, the marketing said go ahead and sue, the contract was totally in favor of Lennar.

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