Should I buy a condo property that is experiencing foundation settling/sinking?

Question

I currently have an accepted offer for a condo property that I now just learn has pending litigation against the home builder for excessive foundation settling.  One the plus side, the homeowners association is suing the home builder so I would not have to deal with that part of the issue.  One the down side, the sinking could get progressively worse as time goes on.  For the time being, the offer is about 30% below the assessed taxes valuation so I believe it is a decent deal.  Could there be issues down the road if the settling gets worse?  Inside the property you can see drywall tape at some corners de-laminating and bubbling.  There is also a panel of drywall that you can see is experiencing compressing on the bottom as it slightly bubbles out.  The cracks that I could find were a little over an 1/8th inch so not too excessive, but they could get worse again with time.  The builder is refusing to fix the issue at the moment and thus the litigation.  I am wondering if I should still go forward with the purchase or let this one go to another doomed sole.  Its a two bedroom, 2.5 bathroom w/ 2 garage spots 1.5 balcony at 1,400 sq ft. for $100K and 360$ association due.  Any thoughts would be helpful.

Thanks!

Mike · Accepted Answer

I wouldn't touch it. Long term hassles and a lawsuit can be lost.

cainvest1 · Answer

You have no way of knowing how many units are affected and whether the Association will win in litigation.  The risk of course is that your Association dues skyrocket to fix the problem across the entire complex.  With foundation problems, roof problems may soon follow.

Tread carefully and negotiate a very good deal for yourself and get a very strong inspection laying out all the problems.  You likely won't see much upside in price if this problem is widespread.

? · Answer

You look to have responded your very own question. If it style of feels too intense -- it in all possibilities are high, in accordance to what you defined. on the marketplace via proprietor isn't and Arm-length transaction a super type of the time. the broker does not have a Realtor who could talk some sense into him. in many situations while there's a apartment complicated it is approximately 30 years previous, some gadgets are in all probability thoroughly renovated, those are those that decide for optimal cost, the gadgets that are all unique, could sell for the cost nearer to the backside comp. forget approximately what appraisal says, it is not any longer an exact technological understanding. If the unit is all unique, be sure how plenty it is going to take you to thoroughly renovate it and upload to what you are going to pay. i could say spectacular now, i could purely walk away and does not even waste any money on inspection. enable that guy take a seat on it for a mutually as and see if he gets quite much less obdurate later. If he won't have the capacity to sell it, he will could checklist it with a Realtor, so in spite of if he gets the comparable 186K, he will could pay 5-6% to a Realtor, so as which would be one hundred seventy five after cost. I advise to you get your self a Realtor, and seek for a place, on the marketplace via proprietor isn't a greater effective deal, opposite to universal have self belief. have faith me if there have been 2 Realtors in touch, then your Realtor could refer to his Realtor and the cost could replicate the real situation of the place. yet for Now walk AWAY. this would nicely be a bad deal. now's no longer the broker's marketplace.

Bill · Answer

You need to pass on this one as it could turn into a nightmare.  What would happen if the sinking got worse and the property became so unsafe that it was condemned.  You would still owe the mortgage, insurance wouldn't pay for repairs and the builder who is being sued could file bankruptcy and you would lose all of your investment.

Should I buy a condo property that is experiencing foundation settling/sinking?

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