A homeowner in Monte Sereno, California filed a real estate fraud lawsuit against a luxury home
builder and Coldwell Banker Real Estate. They conspired to defraud the buyer in the purchase of a new $3.25 million
home, marketing it with the following claims:
- Room for pool and/or other building
- City says space in back sufficient for additional 800 sq. ft. structure
- Fibre optics for better communications
- Three zones of heating and air conditioning
- Total square footage, approx. 5300
All the above statements were documented in three separate sales brochures, the Multiple Listing Service and
“Homes and Land” magazine. They were also told to the homebuyer by both the builder, Lynn O'Brien, and the
listing agent, Lou Rae Kagel. They were all lies and known to be lies at the time of the home sale. Lynn O'Brien
has only built 6 homes, but 4 of them resulted in lawsuits.
The homeowner discovered the lies noted above when he applied for a pool permit with the city and was denied because
the total hardscape on the property was already over the allowable limits. The
city offered a solution, which required the replacement of the concrete driveway with paverstones in order to get a
permit for a pool to be installed. This solution ended up costing the homeowner $65,000 but he only asked for a
$42,000 settlement (one-fourth of the real estate commission!) for all the above misrepresentations, including the
pool misrepresentation. Coldwell Banker and the builder refused to negotiate, resulting in a lawsuit and a final
settlement of $450,000.
If you have any comments or questions, please feel free to contact the homeowner, Ralph Simpson, at
Ralphenator@gmail.com
