Frank hired a new broker perimeter foundation. They who worked “highend” hired a statelicensed homes rather than contractor, who started work. apartments, and Frank did However, probably to save not have the new broker give time and money, neither the 1) Frank lost money.
the prior inspection reports to manager nor the licensed 2) Frank’s partners lost money
the buyers (which is legally contractor obtained a permit 3) Frank has left town
required). For some reason for the new foundation. 4) The present owners are
the final buyers were not Someone, a neighbor going to lose lots of $money
made aware of: 1) low water probably, complained to 5) The contractor’s license is
pressure (old, clogged Code Enforcement, who in jeopardy for not getting a
pipes), 2) inadequate electric issued a “Stop Work Notice”. permit
service, 3) crumbling Fig. 3 shows the boardedup 6) The owners will likely sue
masonry foundation (not foundation going into its third the manager, the contractor,
concrete), 4) termites, wood month. and their broker
eating beetles, 5) dry rot and
the time being.
Conclusions
7) The broker and the
fungus damage at kitchens Additionally, Code Enforcement property manager could face
and baths, 6) faulty exterior has “red tagged” the unit that disciplinary action by the
drainage system (basement had not been rehabbed. It Bureau of Real Estate
floods in the rain). But the cannot be rented. Management broker made a commission has removed the range and Attachment #1 is a List of
of over $50,000 on the $1.3+ refrigerator, indicating the Lessons. What can you add
million sale! unit has been abandoned for to it?
The present owners are still
using the same property
manager as the overseas
woman, the manager with
the low standards. Recently,
the owners decided to
replace the masonry
Fig. 3
foundation with a concrete
55
Lessons
The Current Situation