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Ambassador
4,259,992
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Yes, several times. Lenders take into consideration the litigation subjject and who the litigation is with. 

Jan 27, 2019 07:46 AM
Rainmaker
885,061
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

Depends, yes and no, cash buyers may not care but financed deals might have problems.

Jan 27, 2019 07:28 AM
Rainmaker
895,685
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

No, but I have been made aware of others who got stymied by same. This is an interesting topic and I would think that Californians would have a lot to contribute. I personally know those who have sued their condo board. Condos have never been my jam even when I did a lot of residential, mostly because there are only a few out here and virtually none are approved for all financing.

Jan 27, 2019 07:16 AM
Rainmaker
1,926,309
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I did once.  

We found out what it was, gave the explanation to the lender and the lender felt that it was not a problem and closed.

Jan 27, 2019 07:14 AM
Rainmaker
4,123,282
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I have not. Pending litigation quickly gets a condo off someone's list of acceptable proprerties.

Jan 27, 2019 07:06 AM
Ambassador
3,058,497
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Yes.  Several we cash buyers. A few were financed with a large down payment. 

Jan 27, 2019 07:50 AM
Rainmaker
468,799
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

Yes. A couple of times. Like others mentioned, once you as the buyer's agent have a very good idea of what the litgation is about and understand the various possible ramifications and the buyer understands these as well. Then both you and the buyer are still happy and comfortable with the scene. If the buyer is cash - there's not too much of a problem to close. If there's a lender - the challenge begins. Some lenders can get OK with some situations, most will not. If you and your buyer want the deal to close despite the litigation search any recent solds that closed with financing (our MLS does indicate on the Sold listing the type of finacing or if the deal was cash.... thus one can find a financed sold). Call that buyer's agent and ask them which lender did the deal.

Jan 27, 2019 07:46 AM
Rainmaker
710,004
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Yes, about 9 months ago. The HOA was in litigation with the former builder's insurance company as the defendant. Represented the seller, all disclosures were provided, buyer signed off on it.

Jan 27, 2019 07:30 AM
Rainmaker
4,103,729
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Not yet but it obviously happens. And a couple solutions as others have mentioned. 

Jan 27, 2019 08:01 AM
Rainmaker
611,266
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

My clients typically do not want to buy into a nest of worms...and I do not want the liability of sending the buyer down an unknown path. 

The problem I see is how often the listing agent and seller do not disclose, or simply mention it in passing.  Sellers like to respond with "I do not know" or "I am not sure"...BS, they do know.

I do check into these things...and end up knowing more than the listing agent. One time the agent deliberately lied about the condo litigation and then defended himself by telling me that it is my problem and not his...and he was the chair of professional standards!

Buying into an association with pending litgation can be costly, go on for years and be a turnoff for future buyers.

If you are representing the buyer, it is in your best interest (and the buyers) to keep them on safer path...there is always something else to buy.

Eve

Jan 27, 2019 07:53 AM
Rainmaker
1,901,498
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Nope

Jan 27, 2019 11:25 AM
Rainmaker
1,233,112
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Many, many times.

Jan 27, 2019 09:47 AM
Rainmaker
557,068
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Yes and no.  We had a listing with pending litigation on a roof and truss issue. We fully disclosed the status of the litigation to any potential buyer. At the same time, another brokerage had a listing in the same building in which the information was not disclosed.  This property sold and ours didn't - until the outcome of the litigation was completed. Our disclosed information involved copies of emails, documents from attornies and much more.  I have wondered the outcome of the buyer of that other townhome which sold in which the pending litigation was not disclosed.

Jan 27, 2019 09:44 AM
Rainer
482,447
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

I have. Slip & fall lawsuits are common around here and can drag on for years. They pose different resolutions (or not) depending on the Community's insurance, lender requirements, buyer's desire to live there, etc.
Bruce.

 

Jan 27, 2019 08:41 AM
Rainmaker
5,571,934
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

no.... but if I had a deal and faced with that situation, the buyer's atty would be aware and give guidance to the buyer.... 

Jan 27, 2019 08:30 AM
Rainmaker
2,642,412
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Yes and I used it to my advantage and theirs too

Jan 27, 2019 08:03 AM
Rainmaker
5,592,622
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

No, and wish you all the best.  A

Jan 27, 2019 11:56 AM
Rainmaker
889,337
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

A number of times. The solution was a big pile of cash.

When the community does not own the amenities, and litigation is between association and manager....it becomes hard to know what you may actually be buying.

Jan 27, 2019 11:32 AM
Rainmaker
911,686
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Yes.

There are lenders who are more ready to look behind the mere existence of litigation to find out if it really does compromise their collateral.

Jan 27, 2019 10:42 AM
Rainmaker
684,915
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Yes, with a cash buyer

Jan 27, 2019 10:28 AM
Rainmaker
1,231,599
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

No. Thanks for the question and the informative answers here.

Jan 27, 2019 10:03 AM
Rainmaker
1,387,928
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I am hard pressed to remember having any condo listings.  I work mainly SFRs.

Jan 27, 2019 09:13 AM
Rainmaker
1,723,705
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

Yes, very hard to find financing. I believe it was with 30% down or more. There was only one subdivision in my area that had this problem.

Jan 27, 2019 08:58 AM
Rainmaker
4,047,526
Richard Weeks
Dallas, TX
REALTOR®, Broker

I have not.

Jan 27, 2019 08:34 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have not.

Jan 27, 2019 08:18 AM
Ambassador
4,582,785
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Yes, one time. In other cases the litigation presented an issue for the buyers, and the lenders.

Jan 27, 2019 08:13 AM
Rainmaker
1,154,075
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

yes

Jan 27, 2019 08:02 AM
Rainmaker
508,283
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

No or maybe I should say not yet.  Let us know how it goes.

Jan 28, 2019 06:09 PM
Rainmaker
666,843
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

No, I haven’t. And I have to agree with Eve. There is always something else to buy.

Jan 27, 2019 06:05 PM
Rainmaker
4,433,703
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Jan 27, 2019 02:16 PM
Rainmaker
4,945,362
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Yes, but it was cash.

Jan 31, 2019 07:49 AM
Rainmaker
3,985,875
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have not

Jan 30, 2019 01:52 PM
Rainer
318,050
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Been there done loans more than 50 times

Jan 28, 2019 03:18 PM
Rainmaker
1,114,132
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Yes, several times in a local condo complex we had. Some mortgage providers would not give mortgages, and knowing who would allowed us to pick up some listings and get the condo sold. 

Jan 28, 2019 01:24 PM
Rainmaker
1,640,286
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

No. It doesn't get that much simpler than that.

Jan 28, 2019 08:13 AM
Rainmaker
6,614,358
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I do not know.

Jan 28, 2019 07:48 AM
Rainmaker
4,799,501
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I have once and we escrowed potential damages with the attorney.

Jan 28, 2019 06:38 AM
Rainmaker
3,331,943
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Most often it is against a condo owner who is behind. I have not had one against the condo though

Jan 28, 2019 04:53 AM
Rainmaker
1,519,551
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Yep, must be certain lenders( i know two who might work it out with 30% down) or  a cash purchase. 

Jan 28, 2019 02:07 AM
Rainer
352,876
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

Yes a few.  Fortunately cash buyers as well as some large down.  It gets complicated however and not the next transactions to deal with.  Depends on the litigation. 

Jan 27, 2019 09:25 PM
Rainmaker
535,339
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

No I have not.  

Jan 27, 2019 08:10 PM
Ambassador
5,414,363
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

No, never closed a condo, or even seen one.

Jan 27, 2019 05:49 PM
Rainmaker
4,215,215
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

No, never did a closing with litigation pending

Jan 27, 2019 03:37 PM
Rainmaker
822,252
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Yes and the seller got paid when the association won.

Jan 27, 2019 02:43 PM