Jeff Hansen & Arvin Paredes

408-657-9837

Downtown San Jose Condo & Townhouse Living

Pending Litigation

30 E. Julian Street: The Plaza

Now In Litigation

Currently In Litigation

The Plaza located at 30 E. Julian Street is in pending litigation. This began roughly at the end of April or beginning of May of this year and came as a bit of a surprise. For home buyers as well as home owners, it’s important to know what it means when a condo complex is in pending litigation. Those who live in condo complexes will typically have more knowledge about this subject than someone such as a first-time home buyer.  However, this is not to say that all condo owners know what “pending litigation” actually means and how it affects them. After reading this post, my goal is that all of you will have an increase in awareness on the subject.

Homeowners Looking To Sell And Buyers Looking To Buy

The first thing you must find out as a homeowner is if your complex is “condominium-owned” or if it’s owned as a “planned unit development.” One thing to remember as a homeowner of a unit that’s within a complex in litigation is that prospective buyers could be potentially concerned after they accumulate this knowledge. When a complex is in pending litigation, it means that the Homeowner’s Association has gone after the builder for certain reasons, one being structural defects. For a complex that is  “planned unit development” ownership, pending litigation will affect values marginally, however, not a whole lot. You typically won’t find a lot of planned unit developments in litigation around here.

Complexes where the homes are classified as condo-owned are completely different than complexes that are classified as a PUD (planned unit development). When pending litigation (usually having to do with structural defects) is occurring, financing for a buyer becomes extremely difficult to obtain. Most lenders won’t lend on condo-owned homes because of the risk they would be taking, which means that cash buyers will be the typical buyer. You’ll hear about the occasional buyer that is able to get a loan on condo-owned unit going through litigation and you might also hear that it took much longer than anticipated to close escrow on the home. Feel free to contact me if you’d like to know more about these lenders and what their process is like for these types of situations.

I mention litigation in my video clip on the 7 Deadly Sins Of Buying A Condo.

For any questions about the experiences I’ve had with Condos in Litigation or even how I found out about The Plaza recently going into pending litigation, please don’t hesitate to shoot me an email or give me a call. I’ve helped many buyers and sellers successfully with properties in litigation and would love to help you or anyone you know in this situation.

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