In Lake Oswego, the homeowners association at Sunset Crossing is filing a $5 million lawsuit against the complex’s developers because of water and structural damage.

In short: Sunset Crossing is a 10-unit development in Lake Oswego built in 2005 by Centurion Homes Inc.,  and Aspen Townhomes Inc. Residents there have reported many instances of water intrusion seeping through floors, windows, and walls. Over 25 different defects were found relating to construction and are said to have caused the high moisture content leading to the problems found by residents.

Sunset Crossing is not the first homeowners association to file a lawsuit against the developer and is certainly not going to be the last either. A similar lawsuit was filed in July 2006 by the homeowners association of  Northwest Portland’s Hilltop Condominiums at Uptown against their developer, Uptown Heights Condominiums LLC, because of faulty construction.

Their lawsuit took just over two years and while the Home Owners Association was awarded $2.3 million, it’s still only a fraction of what was sought.

The Big Picture: Lawsuits like this happen more often than you might think and it’s important to know what they mean to the individual homeowners and future homeowners. For those needing (or even wanting) to sell, it’s important to move quickly. While the lawsuit at Uptown lasted just over 2 years, other similar high-profile lawsuits have lasted closer to a decade.

Buyers may pass on a property that even has rumors of a lawsuit. Once the lawsuit begins, most lenders will not provide financing until litigation is completed, and even once it’s finished it’s difficult to say with certainty what resale prices will be like for the properties involved afterward. That’s an especially important point for distressed sellers (short sales included). Since there’s no way to determine how long the lawsuit may last it’s crucial to decide early to sell and to price competitively.

Lawsuits are never fun so if you think you or someone you know may need to sell quick or has a question feel free to send me an email (keep in mind I’m not a lawyer, but can offer advice in regards to handling a real estate transation)

Cheers,

Aaron

About the Author | Aaron Majors

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Born and raised in Alaska, Aaron came to Portland after serving in the U.S. Marine Corps. Aaron enjoys the outdoors, volunteering, teaching, learning, and being active in the community. Always loving architecture and buildings, it seemed natural that Aaron's passion became Real Estate. He is a member of the Portland Metropolitan Association of Realtors, National Association of Realtors and is always continuing his Real Estate education. He sells Real Estate in the Portland metro area and specializes in selling Homes and has an extensive background in foreclosures, Home Auctions, Short Sales, Bank Owned homes, and investments.