There’s a certain thrill in closing on a new build — no history, no surprises, just a clean slate. At least, that’s the dream.
But in South Fulton, Georgia, homeowners in the Rose Crest subdivision say that dream fell apart before they even unpacked. Six months in, they’re finding outlets that don’t work, plumbing that won’t run and HVAC systems that sputter out.
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For Zanza Morris, the cracks showed fast. She discovered her home had actually failed inspection the same day she signed the closing papers.
“They should be held accountable and fix these repairs,” Morris told WSB-TV Channel 2 Atlanta [1], adding that she later learned unlicensed subcontractors were brought in on the job.
Behind the walls
Public records show that Morris’s home didn’t pass inspection on April 15, 2022 — the same day she and her husband signed the closing papers. Since moving in, she’s faced ongoing safety hazards, including serious electrical problems in her kitchen where the lights constantly flicker.
And hers isn’t the only case. The Georgia Secretary of State’s office is investigating a plumber tied to the subdivision who was allegedly working under a fake license number.
Morris has also filed her own complaint with the state’s real estate commissioner, accusing the developer of knowingly selling homes with serious defects.
Other residents are voicing concerns too. Amber Miller, another homeowner, says her townhome flooded after she discovered a towel stuffed into a drain.
All of these homes were built by contractor Lado Banjo, who pushed back when questioned by WSB-TV Channel 2.
“There’s no constructional flaws, we’ve given them a certificate of occupancy,” Banjo said.
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When move-in ready isn’t really ready
For many Rose Crest residents, the biggest red flag hasn’t been the paint or the flooring — it’s their HVAC systems. Homeowners say every return vent was installed directly over the stove, a placement that violates state code.
“I wouldn’t have known that unless an HVAC person pointed it out to me,” Morris said.
Data from the National Association of Realtors shows that nearly one in four new homes fail their first inspection [2]. Of the problems flagged, 38% involve HVAC systems. Even more troubling: almost nine in 10 newly built homes need maintenance before anyone has even lived in them — from electrical wiring and security systems to roofing, flooring and heating and air conditioning.
“With builders, subcontractors, and vendors operating at full capacity racing to meet deadlines, it shouldn’t be too surprising to learn that some details are missed during the home building process,” the author of the study notes.
How to protect yourself
This may have been Banjo’s first development, but that hasn’t softened the frustration at Rose Crest. Homeowners say all they want is for the defects to be fixed before their warranties run out.
Morris’s disappointment stretches beyond the builder — she feels the City of South Fulton dropped the ball too, questioning how a home that failed inspection could ever be sold.
The reality is that even with brand-new construction, oversight can slip through the cracks. And when it does, buyers are often left holding the bill. But there are steps you can take before signing your closing papers to protect your wallet and your peace of mind:
- Don’t skip the inspection. Even if your builder promises the home is “move-in ready,” bring in an independent inspector. They’ll flag issues with HVAC, roofing, wiring or drainage before they become your responsibility [3].
- Double-check permits and licenses. Subcontractors should be certified with your state, and a quick online search can confirm if their license number is valid. You can also check with the Better Business Bureau to see if any complaints have been filed [5].
- Get the warranty in writing. Most builders offer one, but you’ll want to know exactly what’s covered and for how long [5].
- Plan for the unexpected. Even new homes can need early maintenance. Setting aside a small reserve fund can keep an unexpected repair from throwing off your budget. Because nothing takes the shine off a new set of keys faster than a bill you never saw coming.
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[1]. WSB-TV. “South Fulton homeowners say many construction errors in new home by developer”
[2]. National Association of Realtors. “Most Common Inspection Problems Uncovered in New Homes”
[3]. Felix. “New Construction Inspection: Why New Homes Need an Inspection”
[4]. Landes Blosch. “How To Verify Contractors Before Hiring: 5 Simple Steps”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.