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Pop Star Slaps California Realty Company with Lawsuit for Non-Disclosure & Failure to Perform Due Diligence

Not all real estate lawsuits make the newswires. But when it comes to pop star Rihanna, her homeowner woes are all over the Internet. The singer is suing Prudential California Realty, which represented her in the purchase of her Beverly Hills mansion. Rihanna alleges that the property has a number of serious structural defects that make it uninhabitable. She is also suing Landmark Design Group, the firm that remodeled the home for alleging failing to repair the defects.

Rihanna claims that Prudential California Realty did not disclose the property’s defects before she agreed to buy it. She claims “heavy rain caused water to leak into the 10,000 square-foot mansion from a second floor balcony that doesn’t have suitable drainage, before seeping into a number of rooms in the house.” She’s also accusing Prudential California Realty of failing to perform due diligence on the property, and says that the firm should have provided her with sales information regarding similar properties in the area. The agency should have known about the property’s “extensive construction defects”, according to Rihanna.

Rihanna claims she wouldn’t have agreed to pay the $6.9 million asking price for the home back in 2009 had she known of the defects.

You don’t get the Rihanna’s of the world every day to service, but this situation reflects the type of allegations made against real estate firms and the lawsuits they can face, whether accurate or not. Having the proper Errors & Omissions coverage is critical to protect your firm from claims alleging negligent actions for either providing or failing to provide professional service, including defense cost coverage.

Axis Insurance Services provides an E&O product designed for large real estate firms that can be custom designed to your needs. We’d be happy to discuss our insurance program with you.

 

 

 

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Blogged on: October 20, 2011 by Mike Smith
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