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Structural defects in a 44 mega million dollar home …..Where’s the lawyer? #84
Deerwood Realty and Friends
Deerwood Realty and Friends
Structural defects in a 44 mega million dollar home …..Where’s the lawyer? #84
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#moremoneymoreproblems #mansiondown #deerwoodrealty

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A massive Beverly Hills Mansion is apparently unlivable.

Thoughts

1.  The buyer went through the house in July before purchasing and noticed an issue with the windows or HVAC system according to the article.  This is something that happens all of the time.  In fact, when we do an inspection before buying, we are looking for these types of “major” issues.  The problem, in my opinion, is how the repair is made.  You can certainly hire a professional to fix a problem and that not actually solve the problem.  In a case of a normal home purchase, the contractor has maybe 20 days to get in, make the repair, and then the new buyer takes over ownership of the house.  That’s not a lot of time to find out if the repair worked.

2.  In this situation, the article says that that there were wet conditions when the eventual buyer noticed the leaks and when he actually bought the house, the weather was dry.  It is conceivable that repairs were made, but they just didn’t get tested because of the dry conditions.

3.  One of the worst things to happen to a house is water leaks.  It will destroy a house so quickly, and it’s not always obvious where the leaks are coming from.  We’re told that the walls were white marble, if water got behind there it would be terrible.

4.  How bad is this Mansion?  We know they were asking 46.5 million before the house sold, and we know that the lawsuit is asking for 36 million. I don’t have a law degree.  I don’t know about the contention that the house is a “catastrophic failure of building systems and components”  from a legal perspective.  But, it sounds terrible.

5.  Do you know what a spec home is?  It’s a house built by a builder without already securing a buyer.  Usually these types of homes are difficult to build with traditional financing, as lenders would prefer a sales contract before a home is built.

6.  Finally, this was a 40 million dollar mansion.  There are serious issues with it.  It’s a complex home, with 24,000 square feet.  I wanted to bring this article to you so that you see that even the ultra wealthy have issues from time to time with their home purchases.  Building systems can fail.  It’s not limited to million dollar homes.  So, get the home inspection before you buy your home.  Hopefully the inspector finds issues that can either be remedied or you can move on to a different home.  

Sources:

https://therealdeal.com/la/2021/07/27/mansion-buyer-beware-43m-spec-home-a-catastrophic-failure-suit-alleges/

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Podcast Transcript

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