‘We're stuck with this house': Utah family says their $860K new build cracked, flooded and forced them out

Yahoo

07-07-2025

When Neal and Jessica Schmidt relocated from Chicago to Lehi, Utah, they were looking for more space for their growing family. They already had two young children and had just found out they were expecting a third.
Drawn in by the stunning mountain views and the promise of a new life, they purchased a brand-new home for $860,000 from Toll Brothers, a developer that calls itself 'America's luxury home builder.'
But that dream home quickly turned into a nightmare, they told FOX 13. Within 30 days of moving in, the Schmidts say they noticed cracks in the drywall. By the second month, doors were no longer opening or closing properly as the house continued to settle.
Then, while they were away, a pipe above the stove burst, flooding the house and forcing the family into a rental. What they thought would be a three-month displacement turned into an 18-month ordeal.
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Despite the home being under warranty, the Schmidts say the timeline for repairs dragged on without any guaranteed deadlines. During the entire time Toll Brothers was working on the home, the family lived in a series of short-term rentals.
'We're building tunnels under oceans,' Jessica Schmidt told FOX 13. 'How hard is it to make sure this house doesn't slide down a river?'
Neal Schmidt began documenting the delays on social media, even tagging Toll Brothers. Other homeowners in the neighborhood also reported issues, but only one neighbor's home was bought back by the builder. When the Schmidts asked for the same, they say the company flatly refused.
In the end, the couple reached a private settlement with Toll Brothers and removed the social media posts. But the emotional and financial damage remained. 'We're stuck with this house that we know is never going to be worth what it could be,' Jessica said.
The Schmidts' story is far from unique in Utah. In a 2023 case that drew national attention, homes in a Draper, Utah neighborhood slid down a mountainside after being built on unstable ground.
FOX 13 has investigated and found a common thread: Utah's laws offer little protection for homebuyers facing construction defects.
'There's a fair chance that when you buy a home in Utah,' said John Morris, an attorney who has represented Utah homeowners, 'and there are problems with that home, you really will have no avenue for recovery. Zero.'
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Utah's rapid growth has fueled a boom in new home construction, but legal protections haven't kept pace. Unlike some states, which have licensing boards to investigate poor workmanship, Utah has no agency tasked with enforcing quality standards in new builds. The Division of Professional Licensing only penalizes builders for issues like working without permits, not for construction flaws that emerge after closing.
Most builders offer warranties, but those warranties often favor the builder. They may not guarantee repair timelines and can exclude major problems. They also tend to limit what a homeowner can do legally, sometimes requiring arbitration instead of lawsuits, which can restrict your options for getting meaningful compensation.
And while homeowners technically have six years to sue over safety-related defects, those cases are costly, time-consuming and rarely pay off. Utah doesn't allow most homeowners to recover attorney's fees in these lawsuits. So what can Utah buyers do?
Research the builder: Read reviews and look into past complaints or lawsuits.
Get a serious inspection: Don't rely on a basic $150 inspection or city approval. Hire someone who can assess your home's structural integrity and moisture protection.
Read the contract closely: Know what's covered in the warranty, how long it lasts, and whether it includes binding arbitration clauses that limit your legal rights.
File warranty claims early and in writing: Don't wait — most builders won't act unless you document the issue and make a formal claim.
Document everything: Photos, videos, repair requests, and email chains can all support your case if issues escalate.
Use public pressure: If you get nowhere with the builder, consider online reviews or reaching out to local reporters. One homeowner said that's what finally got the company's attention.
Understand your HOA rules: If your neighborhood has one, you may be financially responsible for repairs to shared infrastructure, even if it was the developer's fault.
Until Utah lawmakers pass stronger protections for buyers, the burden of making sure a home is safe and sound falls largely on the homeowner. And that means doing your homework long before the keys are in your hand.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.