ASSIGNMENT:

A past client returned to us on a purchase of a small 8 unit apartment building in Anaheim California. It was an easy enough assignment and it's always great to reconnect with a past client & on this transaction the listing agents were also agents that we had worked with quite a few times over the years. After identifying all the players in the transaction it appeared like it was going to be a very smoothe transaction, little did everyone know about the surprise that was soon to be discovered.

CHALLENGE:

We were already thick into the transaction an appraisal was completed and the file was heading into underwriting and late in the transaction the lender completed their internal environmental desk top review and the findings came back with historical evidence of possible environmental contamination. The buyer was still willing to continue and paid for a Phase 1 report, but the environmental engineer could not give a clearance without completing a phase two and that became a tipping point and the buyer was out the deal died and the seller pulled the property from the market.

SOLUTION:

A few months later we had received a call from the sellers agents and they informed us that the seller ended up hiring an environmental firm to complete a Phase two and that afterwards the report results came back with no further actions recommended. They were getting ready to put the property back on the market and asked if the previous buyer was still interested now knowing that the property was clean free from any contamination.  It turned out the buyer was interested, so we first ran the phase two report by the prior lender they were good with it and mentioned that they would not require a new appraisal only a few updated bank statements and for a new escrow to get opened up. We were able to close in 30 days. Talk about a stroke of good luck :)