Yes, several times. Lenders take into consideration the litigation subjject and who the litigation is with. 

Depends, yes and no, cash buyers may not care but financed deals might have problems.

No, but I have been made aware of others who got stymied by same. This is an interesting topic and I would think that Californians would have a lot to contribute. I personally know those who have sued their condo board. Condos have never been my jam even when I did a lot of residential, mostly because there are only a few out here and virtually none are approved for all financing.

I did once.  

We found out what it was, gave the explanation to the lender and the lender felt that it was not a problem and closed.

I have not. Pending litigation quickly gets a condo off someone's list of acceptable proprerties.

Yes.  Several we cash buyers. A few were financed with a large down payment. 

Yes. A couple of times. Like others mentioned, once you as the buyer's agent have a very good idea of what the litgation is about and understand the various possible ramifications and the buyer understands these as well. Then both you and the buyer are still happy and comfortable with the scene. If the buyer is cash - there's not too much of a problem to close. If there's a lender - the challenge begins. Some lenders can get OK with some situations, most will not. If you and your buyer want the deal to close despite the litigation search any recent solds that closed with financing (our MLS does indicate on the Sold listing the type of finacing or if the deal was cash.... thus one can find a financed sold). Call that buyer's agent and ask them which lender did the deal.

Yes, about 9 months ago. The HOA was in litigation with the former builder's insurance company as the defendant. Represented the seller, all disclosures were provided, buyer signed off on it.

Not yet but it obviously happens. And a couple solutions as others have mentioned. 

My clients typically do not want to buy into a nest of worms...and I do not want the liability of sending the buyer down an unknown path. 

The problem I see is how often the listing agent and seller do not disclose, or simply mention it in passing.  Sellers like to respond with "I do not know" or "I am not sure"...BS, they do know.

I do check into these things...and end up knowing more than the listing agent. One time the agent deliberately lied about the condo litigation and then defended himself by telling me that it is my problem and not his...and he was the chair of professional standards!

Buying into an association with pending litgation can be costly, go on for years and be a turnoff for future buyers.

If you are representing the buyer, it is in your best interest (and the buyers) to keep them on safer path...there is always something else to buy.

Eve

Nope

Many, many times.

Yes and no.  We had a listing with pending litigation on a roof and truss issue. We fully disclosed the status of the litigation to any potential buyer. At the same time, another brokerage had a listing in the same building in which the information was not disclosed.  This property sold and ours didn't - until the outcome of the litigation was completed. Our disclosed information involved copies of emails, documents from attornies and much more.  I have wondered the outcome of the buyer of that other townhome which sold in which the pending litigation was not disclosed.

I have. Slip & fall lawsuits are common around here and can drag on for years. They pose different resolutions (or not) depending on the Community's insurance, lender requirements, buyer's desire to live there, etc.
Bruce.

no.... but if I had a deal and faced with that situation, the buyer's atty would be aware and give guidance to the buyer.... 

Yes and I used it to my advantage and theirs too

No, and wish you all the best.  A

A number of times. The solution was a big pile of cash.

When the community does not own the amenities, and litigation is between association and manager....it becomes hard to know what you may actually be buying.

Yes.

There are lenders who are more ready to look behind the mere existence of litigation to find out if it really does compromise their collateral.

Yes, with a cash buyer

No. Thanks for the question and the informative answers here.

I am hard pressed to remember having any condo listings.  I work mainly SFRs.

Yes, very hard to find financing. I believe it was with 30% down or more. There was only one subdivision in my area that had this problem.

I have not.

I have not.

Yes, one time. In other cases the litigation presented an issue for the buyers, and the lenders.

yes

No or maybe I should say not yet.  Let us know how it goes.

No, I haven’t. And I have to agree with Eve. There is always something else to buy.

No.

Yes, but it was cash.

I have not

Been there done loans more than 50 times

Yes, several times in a local condo complex we had. Some mortgage providers would not give mortgages, and knowing who would allowed us to pick up some listings and get the condo sold. 

No. It doesn't get that much simpler than that.

I do not know.

Most often it is against a condo owner who is behind. I have not had one against the condo though

Yep, must be certain lenders( i know two who might work it out with 30% down) or  a cash purchase. 

Yes a few.  Fortunately cash buyers as well as some large down.  It gets complicated however and not the next transactions to deal with.  Depends on the litigation. 

No I have not.  

No, never closed a condo, or even seen one.

No, never did a closing with litigation pending

Yes and the seller got paid when the association won.