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Yes, You Can Make It Subject To Verification Of The Litigation

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AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Saw this condo today. A 2 story building on top common garage. Van Nuys, not an expensive area.
In the courtyard there were a bunch of planters that had been boarded up.
The RE agent says due to heavy rain last winter they overflowed, made a mess.
He soft pedaled it I guess. But otherwise the place looked OK.

On the way out I stop to read a letter in the glass covered bulletin board in the lobby.
Letter from the HOA dated Feb 2014. Says something about litigation due to drainage issues and settlement problems. Said they were going to hire engineers to scope it out yadda. So, what has happened in the last 3 1/2 years? :cautious:

The HOA management tells me all these requests are handled through homewisedocs.com. I had to sign up to see that it could cost several hundred dollars to get your info, but it depends on which docs you need. I thought information wanted to be free? Oops I'm outdated. Anyway, I put it back on the client and their response is the thread title. "Yes, you can make it subject to verification of the litigation."

Ohhhhhhhhhhh Kay. But I think I need better CYA language / verbiage. Maybe an EA as well. I did not see signs of settlement or drainage issues, but it has not rained since spring. I'm pretty sure some of you will have some ideas for verbiage and maybe buzzwords. So, hit me.

Photo attached for clarity / viewing pleasure. Dig that particle board landscaping,LOL. There are actually comps in the project in the ballpark of the bullseye / contract sale price fwiw. :peace: 100_1653.JPG
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Better thee than me

my_brain_is_full.jpg
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Eeks..You could make it subject to inspection....but if not, then as you saidf comments to CYA. The building does not "look" like it is experiencing issues but it could be due to topography/ things we can not see.

Write that you did not observe any moisture, cracks, signs of settlement but that you are not a qualified inspector and you recommend inspection.
Comment that the litigation issues are posted in the courtyard signage and it is assumed a well informed buyer would know about it and factored it in their purchase decision.
The litigation and any possible repair issues , any affect on value is absorbed in the prices, and the prices of the recent sales range from A -to B with a marketing time of ( x ) , Write that you made efforts to obtain a record of the litigation but you were not able to, and HOA would only release it upon payment , at which point the report is made subject to verification of the ligation , and you recommend client and users have an attorney review the information once it is obtained.

Were the sales of the units sold cash sales? Pending litigation if minor may not affect ability to get financing, but it major or due to other issues lenders might reject the condo and only buyers are cash, so see if all the other sales are cash or if any were financed, and if conversations with RE agents who sold any of the units reveal any info..
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I hope you have sales subsequent to the date of flooding and litigation, as well as a history of listings to determine market resistance.

Definitely make it subject to legal issues as there may be a settlement requiring payment by the HOA, etc.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Those landscape areas, aka, rain retention basins against the side of the building, were probably directing water against and/or under the foundation. We see the same thing here in older homes where brick/stone landscape areas were basically part of the house. They keep water against the house foundation and cause the sill plates and floor joists to rot. Yours is likely slab on grade and the water is eroding under the foundation, hence the new wooden umbrellas.

I'd discuss and highlight the issue and make the report subject to inspections and an EA. The title company should find info regarding litigation, if any.
 
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gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Appears to be a Motel 6, Lee sure about the address? :)

Btw, litigation details are available from the CA Superior Court, probably LA County.
 

A K

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
You can probably search court cases online in LA. I appraised a couple condos before that were being sued and everything was available online.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Interesting, the Motel 6 chain started in Santa Barbara, so I have seen the first of them, that looked fairly similar to Lee's property.
I did not know that and would not have associated Motel 6 with an upscale area like SB.
 
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