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Slander of Title Interference from HOA stopped sale of Condo

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Tapp

Junior Member
What is the name of your state? california
Basically, we are the top floor condo, there is one condo below us, both units are 2 bedrooms, 2 bath. We were renting the unit out when this happened. There was water allgedly leaking from our unit and we were notified January 31st 2003 by the Home Owners Association . September 9 2003 the Home Owner Association notified us there was ceiling damage to the unit below us. January 2004 we were notified the tenants denied them access to our unit. April 2004 they notified us there was another leak in the unit below. We evicted our tenants through court in July of 2004. August 2004 we hired a Realtor provided him keys to sell and subsequently he allowed the Managment Company into the unit so there construcion company could inspect our unit and the one below. The construcion companies report indicated 1 sq ft of visual mold in the unit below, this equates to a Level 1 remediation per NYC Guide lines . The over zealous Manager had the construction company prepare a bid wanting approximately $16,700.00 to fix both units, Remediation and build back, sighting New York City Mold restoration methods, as California at that time had no mold laws. The work they proposed was for a level 4 restoration which is the worse you can have 30 sqft and above. When my wife went to California in July to evict the tenants in court, my wife told the owner of the below unit that we would have someone come over and investigate and repair associated damage. On August 26 2004 the owner of the unit below allowed the company we hired to repair the damage and we paid the bill of $586.00. The work done was as follows: Repaired ceilings in bedroom and laundry closet, pulled and re-installed washer dryer combo unit for access 2 men, treated area for mildew, pre paired , patched and primed ceiling walls, Painted ceiling and walls to match, materials and labor. This cost was far less than the over rated bid from Home Owners Contractor. Our unit cost $778.0 The work done as follows: Replaced drain seal in shower, toilet, angle stop, and flex lines in master bath, cleared dish water drain line, replaced fill valve in second bath toilet, treated mildewed areas with fungicide, serviced laundry valves, tested for leaks no leaks were found. No mold was found in either unit by our repair company. After repairs on the unit below the owner expressed her satisfaction with the work to the company we hired and to my father-in law. At this point we thought this was over as we had complied with all request to repair below unit and treated for mildew and we were billed August 30 2004 by our contractor and they were paid, it was over. November 2004 we accepted a contract to sell our unit and were in the process to close, December 15 2004 we received a letter from the Home Owners Associations Attorney stating they wanted a " Mold Clearance Certificate " and conditions must be corrected before sale occurs. The Home Owners Association maliciously advised the closing title company sale could not take place unless the work that the Home Owners Association requested was done. As a result we lost the sale. * NOTE: the work had been completed by August 30 2004. Additionally, we contacted the California Enviromental Agency to obtain a " Mold Clearance Certificate ", the enviromental agency informed us that there was no such document and that there were no provisions in California Legislation/Code/Statue that had any jurisdiction for mold. They refered us to New York Mold Guidelines. Our unit was sold August 2004 for $375,000.00 "AS IS". That buyer back out in November because of the Home Owners Association notice to them that the unit needed a " Mold Clearance Certificate ". We resold the unit November 22 2004 for $370,000.00 and the Home Owners again interfered costing us the sale. Today's market November 2007 the unit under the current market in " As Is Condition " is worth only $225,000.00. We took the unit off of the market as the inteference from the Home Owners Association was harrassing and not productive and as a result the unit could not be sold because of their unreasonable demands. February 23 2005 Home Owners had mold investigation done on the below unit, that we had already fixed and treated for mildew ( that was not present ) and they repaired what they called damage caused by multiple leaks for a total amount of $3,690.43 including $686.90 for attorney fees. They state the leaks happened January 1 2004 thru December 31 2004. This claim was filed October 12 2007. There were no new leaks reported to us after April 7 2004 and as stated leaks and damage were repaired August26 2004.

Do we have a Slander of title case based on the written interference from the HOA and their Attorney. They put the slander in writing and orally?
 


quincy

Senior Member
First let me say that Slander of Title is not an area of expertise for me, but I will tell you what I know and what I suspect a California attorney may tell you about the difficulties in bringing a successful suit against the HOA in a Slander of Title action. You will need to consult a California lawyer, however, to see if an action against the HOA has merit and is worth pursuing.

Slander of Title is a tort. One who commits a slander of title is one who, without a privilege to do so, publishes matter which is untrue and disparaging to another's property in land which results in the impairment of vendibility of said property. The conditions for slander of title are that there has been publication of a falsity with an absense of justification for this falsity which results in a direct pecuniary loss.

You can demonstrate a pecuniary loss with the loss of two sales to your property, if you have the closing documents from those $375,000 and $370,000 sales that fell through and can tie the failures to close to the HOA and their contact with the title company. You can also demonstrate a loss due to the drop in market value of your condo from the time of the first accepted offer of $375,000 to its current market value of $225,000. With these proofs, you could potentially recover general damages, representing the extent to which the vendibility of your condo was impaired by the HOA.

Punitive damages could be recovered where it is proven by clear and convincing evidence that the HOA was guilty of oppression (cruel and unjust hardship with a conscious disregard for your rights), fraud (intentional misrepresention, deceit or concealment of material fact known to the HOA with the intention of depriving you of your legal rights), or malice (conduct intended to cause injury or despicable conduct which is carried on with a willful and conscious disregard for your legal rights).

Attorney's fees incurred as a result of your litigation could be elements of damages caused by Slander of Title only to the extent that they are incurred in an action to remove a slanderous encumberance (such as a lien) from the property.

I do see difficulties you could face with a Slander of Title action, however. Because there was mold (albeit not the 30 square feet plus the HOA had wanted treated), the HOA could potentially feel they were justified in wanting a "mold clearance certificate" prior to the sale. The HOA may also consider their comments to the title company were not "false". If they can prove they had justification and that the comments to the title company were based on a real property defect that had not been, at that time, "cleared", you would not collect any general damages. Punitive damages would be harder to prove, as malice and fraud would need to show despicable conduct and intentional misrepresentation (which I am not seeing here) and oppression would need to have created a cruel and unjust hardship (this might be easier to show).

Again, you should consult a California attorney to see if the HOA "defense" is one that can be overcome realistically.
 

Tapp

Junior Member
Slander of title

Quincy,
Thank you for the info, I agree. One thing when I said 1sq ft of mold I did not state that correctly. There was no mold ever. The HOA managing company went on a " Witch Hunt " for Mold. Their attorney wrote us a letter with normal language, your problem fix it or else. I responded and presented facts that there is no such document as a Mold Clearance Certificate in California and provided them all of my bills of fixing the unit below. I never heard from the attorney's again. Feb 2005 the HOA Managing company went into the unit below , cut an access in the ceiling to search for mold, they found none. Now they want me to pay their attorney's fee and pay for their mold hunt and the repairs they had to make fixing the access. That is the small claims court and they are past the statue of 3 years. I am more concerned with the loss of sales and yes the market has dropped and I believe will play a large part as well as I believe the Slandered my Title and were in fact punitive. My attorney has a good freind in California who is an attorney that won a case for Erin Brokovich. I am calling tomorrow. Thanks much if you have more I would really like to hear what you sent me " I Agree ". Tapp
 

quincy

Senior Member
Tapp -

I re-read your original post and see now your mention that there was no mold found by the company you hired to do the repairs, but I am a little puzzled by the fact that the management's construction company original report to the HOA said they found mold in the unit below yours. Did they mistake mildew for mold? The HOA may be able to base their defense on this report of mold, whether it was actually mold that was found or not.

If you sent your repair bills to the HOA attorney, with an explanation for the lack of a mold clearance certificate (that they do not exist in California), and a report of your company's findings as to the condition of the units, that should prove to the court that you handled the matter promptly and as completely as was required for the condition of the units.

Was an inspection ever made of the units by the HOA after your repairs were made? You only mentioned that the owner of the lower unit was satisfied with the repairs.

I assume you retained copies for yourself of all of the repairs done and the costs involved. The report made by the company you hired, as to the condition of the units, along with the receipts for the repairs done to both units prior to your first sale, should demonstrate to the court that the HOA had no grounds to interfere with either the first or the second sales of your unit. Of course you must provide some sort of evidence that the HOA's contact with the title company led to the failure of the sales - perhaps with the title company's or the purchaser's written or oral statements to that fact.

Although I think you have a decent shot with a slander of title case against the HOA, you may find that it comes down to a battle of documents - their construction company's original report of mold and the repairs the management made to the units after your own repairs (albeit only repairs of damage they created to inspect the units), and your company's report of the damage to the units and your demonstration of repairs made.

If my research was right about the statute of limitations on a Slander of Title case, and this is year 3, you would have 2 years to bring your suit against the HOA. Definitely check the SOL on this, though, as my 5 year figure may be wrong.

Sounds like you have great connections in Calfornia, so the attorney you talk to should be able to handle everything for you beautifully.

Good luck. :)
 
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Tapp

Junior Member
Condo Leak Tapp

Tapp -

I re-read your original post and see now your mention that there was no mold found by the company you hired to do the repairs, but I am a little puzzled by the fact that the management's construction company original report to the HOA said they found mold in the unit below yours. Did they mistake mildew for mold? The HOA may be able to base their defense on this report of mold, whether it was actually mold that was found or not.

If you sent your repair bills to the HOA attorney, with an explanation for the lack of a mold clearance certificate (that they do not exist in California), and a report of your company's findings as to the condition of the units, that should prove to the court that you handled the matter promptly and as completely as was required for the condition of the units.

Was an inspection ever made of the units by the HOA after your repairs were made? You only mentioned that the owner of the lower unit was satisfied with the repairs.

I assume you retained copies for yourself of all of the repairs done and the costs involved. The report made by the company you hired, as to the condition of the units, along with the receipts for the repairs done to both units prior to your first sale, should demonstrate to the court that the HOA had no grounds to interfere with either the first or the second sales of your unit. Of course you must provide some sort of evidence that the HOA's contact with the title company led to the failure of the sales - perhaps with the title company's or the purchaser's written or oral statements to that fact.

Although I think you have a decent shot with a slander of title case against the HOA, you may find that it comes down to a battle of documents - their construction company's original report of mold and the repairs the management made to the units after your own repairs (albeit only repairs of damage they created to inspect the units), and your company's report of the damage to the units and your demonstration of repairs made.

If my research was right about the statute of limitations on a Slander of Title case, and this is year 3, you would have 2 years to bring your suit against the HOA. Definitely check the SOL on this, though, as my 5 year figure may be wrong.

Sounds like you have great connections in Calfornia, so the attorney you talk to should be able to handle everything for you beautifully.

Good luck. :)
Hi Quincy,

Thank you for reading my post again, Yes I sent Bills to the Hoa attorney, an explanation of the non "MOLD CLEARANCE CERTIFICATE", findings and the work completed on both units. My contractor found no major leaks as the HOA had described " major flooding, major plumbing problems in our unit and so on ". We were not made aware of any inspection by the HOA of the work we did. I have all receipts, bids, work done and findings by both contractors HOA and ours. We have copies of two cancelled contracts from two bonafied buyers and a letter from the HOA's attorney, Dec 14 2004, telling us that we could not close without the certificate and we had to disclose that the unit had mold to any purchaser. We did disclose to the purchaser that the HOA was demanding there was mold and we showed them our documents that there was no mold. My wife is a real estate broker and familiar with this law. However, prior to the attorney's Dec letter, the HOA notified the Title company that we needed the " MOLD CLEARANCE CERTIFICATE ". This stopped the sale because I cannot produce something that does not exist.
Hoa's contractor report of mold: This was very ambiguous, the write up stated there appeared to be 1 sq ft of mold then they have a check off portion which states:
Is mold present? No
Mold remediation required? No

There are more questions but they all lead to one conclusion, what they wrote will not help the HOA. Their report of damages were inflated to the point it just does not make sense. I can demonstrate repairs made by witnesses and documents. I filed Suit today in California for Slander of Title. I know this is on the edge, However I cannot let this go!

Yes, I believe I will be represented well.

Tapp
 

quincy

Senior Member
The statute of limitations for filing a slander of title in California is 3 years, not 5, so I hope your filing is in time. It sounds to me like you have a good basis for a successful slander of title suit against the HOA otherwise, especially with the HOA's contractor's report working in your favor, as well. Good luck!
 

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