Initial Property Condition
Initial Property Condition
There are FOUR initial property condition scenarios that are most relevant.
July 2020 - The condition of the property when the Seller moved out and turned possession over to the Seller's Agent for fixup.
March 31, 2021 (Actual) - The actual condition of the property as known to the Seller and Seller's Agent at time of Contract Acceptance.
March 31,2021 (Disclosed) - The disclosed condition of the property at time of Contract Acceptance.
April 16, 2021 (Actual) - Condition at time of Deed Conveyance
The difference between 1 and 2 represents the fraudulent construction Organized and overseen by the Seller's Agent and ultimately paid for by the Seller, with possible bridge financing by someone..
The difference between 2 and 3 represents the Negligent and Fraudulent mis representation at time of Contract Acceptance that gives rise to Liabilities as of 4, since none of the defects were corrected or paid for between 2/3 and 4. (Contract Acceptance and Deed Conveyance).
When the Seller's Agent took management possession of the home, the following was present AND the Seller and/or Seller's Agent would have been fully aware of the conditions
Interior - Exceptional/Atypical Property Conditions that were known to neighbors and members of the community that were properly remedied by Seller's Agent and those he hired to support him in the Work for the Seller...
Debris - Approximately 5 "Got Junk" truckloads of debris in the home (per neighbor attestations and local resident statement)
Filthy/Dirty - The home was filthy./dirty (per Seller's Agent and obvious signs of deep cleaning problems that were not fully cleaned in preparation for sale. per neighbors and members of community)
Interior - Material Defects known to Seller and/or Seller Agent at time of Property Handoff which were NOT remedied nor disclosed properly
Mold / Pet Urine - Massive cat and dog urine conditions in the dining room, utility room, 1st floor bath and adjoining hallway (per neighbor attestations)
Mold / Fallen Ceilings - Ceilings fallen in the utility room and 1st floor bath from water leak a year or more prior that had not be mitigated. Mold present and visible. (per neighbor attestations, Seller Agent Statement and conditions found after deed conveyance)
Mold / Kitchen Drywall - Mold visible under kitchen sink and behind dishwasher (based on findings after deed conveyance)
Mold / 2nd floor Attic Rodent Invasion -- Missing Ceiling in 2nd floor closet ceiling / 2nd floor attic rodent infestation / 2nd floor ceiling drywall damage - 1000sf of insulation destroyed by 3 weeks of raccoon family invasion. Drywall ceilings damaged (per our investigations and verbal comments by Seller's Agent) . Ceiling had been removed to access 2nd floor attic for rodent invasion. (per Contractor Quotes obtained 3 weeks into escrow and verbal comments by Seller's Agent)
Mold / Water intrusion in Garage and damaged drywall - From siding and/or deck defects (from 2015 report delivered 3 weeks into escrow after disclosure window had closed)
Explosion Hazard - Gas Furnace - pilot light below 18" from ground - fire and explosion hazard (per 2015 inspection report delivered 3 weeks into escrow after disclosure window had closed)
Explosion Hazard - Gas Water Heater - pilot light below 18" from ground -fire and explosion water hazard (per 2015 inspection report delivered 3 weeks into escrow after disclosure window had closed)
Structural Defect / Crawl Space Support Columns - The two main support posts in the crawl were dry rotted from 12" of prior flooding in the crawl (from our termite inspector investigation, not theirs)
Structural Defect / 2nd floor bathroom floor dry rotten - The 2nd floor bathroom floor was structurally unsound. An area right next to tub that had to be stepped on to get in and out of tub. (known to seller from emails obtained late in escrow)
Plumbing Defects - No hot water in the home (the pipes were corroded 80% shut at the water heater) . The 1st floor shower drain did not allow water to pass. (from water tests during investigations and then from demolition after deed conveyance).
"New" hardwood floors damaged - Hardwood floors advertised as "new" could not be identified due to scratches and damage created during occupancy
Exterior - Material Defects known to Seller and/or Seller Agent at time of Property Handoff which were NOT remedied nor disclosed properly)
Structural Defects / Cantilevered Deck Beyond Useful Life -The deck on south facing wall was beyond useful life from sun damage, pests and dry rot. (from 2015 report delivered 3 weeks into escrow after disclosure window had closed. from our investigations and obvious repairs that were subtle and not noticed until inspections. From inspections after deed conveyance. From friends who toured property in 2015 )
Structural Decay / Fascia - The fascia on the entire home was dry rotten and/or pest damaged . it was then puttied and painted over. (from both termite inspector investigations)
Mold Catalyst / Siding Beyond Life - The siding on south facing wall was beyond useful life from sun damage. (from our investigations and obvious repairs that were subtle and not noticed until inspections)
Other Defects that "should have been known" to Seller and/or Seller's Agent at time of handoff (NONE of these were remedied nor disclosed properly)
Septic System main line between home and tank beyond useful life - The Septic Company indicated the line would not have worked for more than a month without need for cleaning. The ridge of the cleanout pipe showed numerous marks from high speed industrial cleaning equipment. the main line clogged our first week of occupancy from two of us using it.
Grade and water issues on north side of yard - major problems with water management in north yard ( the concreate on the front porch had dropped by 3 " indicative of serious below grade water issues. Upon rains, water floods that part of front porch and stands. )
Material Facts Falsely Presented
Well Utilities - Well utility cost was understated by $80/month
Home Utilities - Home utility costs were not answered properly and mis-represented the true, limited nature of the Solar Benefits.
Defects CREATED by the Paint Contractor during $15,000 in painting work (these are in addition to concealed defects related to the items above)
Exterior Paint- The entire exterior of the home was painted with interior paint
Paint on Roof and in Closets - Over spray on asphalt shingles and Cedar Closets
NONE of the items above identified as Known defects were properly disclosed nor remedied.
The Seller and Seller's Agent had full knowledge of the 2nd floor attic damage and 2nd floor drywall ceiling damage. They paid to conceal evidence and both failed to disclose it. -- Conspiracy to Commit Fraud - 10k+
The Seller paid significant money for work in the utility room and 1st floor bathroom. That was concealment by contractor with the Seller's Agent's oversight. The seller failed to disclose a prior problem that he had paid to repair, and the people doing the repair failed to do it properly resulting in 10k+ in damage.
The Seller paid money to have the south facing siding repaired. That work should neve have been done. The contractor took money to help conceal defects that needed to be disclosed and/or repaired. That was 15k+ in fraudulent malpresentation and concealment.
The Seller paid money to have the deck removed and 5 rotten joists concealed. That was 8k+ in fraudulent misrepresentation. The seller should have known there were rot problems from his 2015 report.
The defects with the Water Heater and Furnace were clearly known by the Seller, because the GC that he used was at the home one day when we were there. We discussed them. The GC indicated the Seller had been told about the issues and refused to pay to fix them. The GC had brought over a used Water Heater stand and been told not to install it. So he left it there. It made for a dead giveaway somebody knew something. We would presume this information was also known to the Sellers Agent as the overseer of work and the property.
There's more, but this is the gist. Please see https://contractor-complaints-2023.bryancanary.com/ and https://inspector-complaints-2023.bryancanary.com/ for many for these details. For the details not involving the Contractors and inspectors see https://home-purchase-2021.bryancanary.com/
Damages actually transpired at time of Contract Acceptance. We gained standing for Specific Performance Lawsuits to deliver a property in the disclosed condition at that time.
Notices were sent related to the Conditions found to be defective that were not disclosed prior to Contract Acceptance. Receipt was acknowledged but no dialogue transpired.
We paid that amount for the property we had agreed upon in our Binding Contract to fullfill our financial obligations.
The property delivered to us was with defects that were not disclosed as part of our Binding Contract. (aka we over paid for the property based on the condition it was delivered in).
We found the mold issues and many of the structural issues after Deed Conveyance.
We started this process of rectification by tracking investigating "why" these people all thought they could get away with this level of criminality.
The CAR Contract Fraud - the CAR Contract encourages illegal behavior. That was done to self serve the legal lobby with dispute resolution revenues. That also creates a situation in which simple conversations can be twisted into complex for no sound reason other than legal lobby profits. We've proven this now.
Legal Lobby Disconnect - We've shown that Attorneys who claim they engage in Real Estate Law express support for our claims but will not engage with us. Presumably due to 1) economic futility and 2) exposing their industry's role in the malfeasance. ill not touch this case,
Brokerage Consumer Protection non existent - The Brokers and Brokerages showed during and after the transation they had no proper consideration for Consumer Protection, as is required for their role in the Real Estate Sales. They are all acting as traditional corporations, using legal defense to offset illegal activities to garner exceptional sales.
State Administrative Agency Capture - We've shown that the CSLB and SPCB were not operating in a sincere manner when complaints were filed. We've shown the CA DRE is not handling the investigation with any level of transparency expected from a violated party.
Bond Company Oversight Failure - We've shown that Bond Companies, with an obligation to do inspections will ignore facts and dismiss complaints in the face of frauds that stand for themselves.
All systems designed to create and maintain a healthy marketplace are broken.
After months of pounding on the State Oversight Agencies, two finally engaged.