M
att and Jill Spaulding's dream home in Long Beach turned into a nightmare after they purchased it from RS Real Estate Plus for $1.6 million in 2022. The four-bedroom house had been touted as a "stunning remodel" with new everything, but the family soon discovered that the property was riddled with structural problems and toxic hazards.
The Spauldings' 5-year-old daughter and two sons, ages 7 and 3 months, were exposed to asbestos, mold, and fungus throughout the house. The air conditioning system malfunctioned, causing a mysterious yellow, orange, and red liquid to ooze from the drain. The family also found termites marching along walls and ceiling.
The Spauldings claimed that RS Real Estate Plus' CEO Raafat Salem and broker Lisa Richmond concealed the property's many defects. They alleged that their Realtor, Anne Hulegard of RE/MAX Estate Properties, was aware of the unpermitted construction work but failed to disclose it to them.
After three attempts, the home finally passed inspection, but the family soon discovered more problems, including a flooded yard, a handrail that fell off the stairs, and a bathroom shower that stopped draining. The Spauldings were forced to move out due to water damage from the faulty air conditioner, which required reconstruction of walls and ceilings.
An inspection by Construction & Consulting Services revealed two load-bearing walls had been removed without proper permits and inspections, posing a risk of structural collapse. A subsequent report by licensed general contractor Jereme James uncovered over four dozen additional structural deficiencies, including electrical and plumbing issues, missing insulation, and improper beams.
The Spauldings estimated it would cost around $545,000 to complete all the repairs and make the house livable, but they are struggling financially due to the ongoing expenses. Matt Spaulding's job was affected by his frequent absences dealing with the property issues, and the family is worried about their future.
The Spauldings have filed a lawsuit against RS Real Estate Plus, Salem, Richmond, and Hulegard, alleging negligent misrepresentations and fraud. They hope their experience will serve as a cautionary tale for others to beware of home flippers and ensure that all work is permitted and extensively inspected by specialists they trust.
