Welcome to San Diego Blog | May 1, 2013
San Diego Buildings in Litigation
Downtown Condo Litigation Guide
Updated May 1, 2013
As previously detailed in my November Condo Litigation Update, I have put together a comprehensive list of properties that have entered into litigation. For the most part, buildings that are noted on this list were built within the 10 year statute of limitations for construction defects.
The scope of the litigation will vary per building, and in most cases, once litigation has been filed, it can take on average about 18 months to settle.
I have been keeping in close communication with lenders on the Downtown Buildings and the progress of the litigation. There are a few properties on this list that are very close to being settled, so stay tuned for further updates.
Downtown San Diego Condominiums in Litigation- May, 2013
You will notice in the STATUS column, there is a category detailed as SB800.
SB800 refers to Senate Bill 800, which in California gives the Builder the “Right To Repair” defects discovered in a specified development. During this phase, we like to call the “discovery phase”, usually a third party is hired by a building’s homeowner association to investigation potential issues that burden the building. This is PRIOR to an actual lawsuit is issued; however, when obtaining financing in a condo complex, underwriters are required to have what is called a condo certificate, which is a questionnaire detailing the specifics about the complex itself. On the questionnaire, there is a question if the building is in litigation. If the building is in SB800, it could qualify for what is called “limited review”, in such case only specified lenders can obtain financing on the property.
NOTE: This information is constantly changing, so make sure to do your due diligence prior to engaging in a transaction.
For more information about Condos in litigation, or lenders who can lend on these identified projects, feel free to send me an email, or give me a call:
Downtown Real Estate Specialist