Legal Question in Real Estate Law in California

Price Gouging

I am purchasing an unattached home in a gated community. Upgrades to the fixtures, flooring, counters, appliances, etc., must be purchased through the developer's design center. Prices of the upgrades are not only not fair, but border on highway robbery. It is much cheaper to purchase an upgraded item at straight retail than it is to purchase the upgraded item through the design center. In one instance, the increase in the price alone for an upgraded item exceeded the actual retail cost of the upgraded item by a significant amount. The design center will not allow major items (i.e. flooring) to be purchased and installed prior to the close of escrow. Additionally, the design center states that inspections cannot be completed if such items as sinks, faucets, and toilets are not installed. We know that builders do not pay retail and we and other purchasers would be more than happy to purchase through the design center at retail or even slightly higher. But to be held captive by a design center and charged prices that defy all reason appears to be criminal. Is it? What's the solution?


Asked on 1/30/01, 2:24 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Price Gouging

Unethical, but not illegal PROVIDED all of this was disclosed to you before you made a commitment to buy in this community.

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Answered on 3/16/01, 12:02 am


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