Early estimates in response to dozens of lawsuits has determined that defective Chinese drywall is present in at least two percent of the 20,000 single-family houses developed in Florida between 2006 and 2007 by Miami-based homebuilder Lennar Corp.
The number of defective residences may grow even higher as Lennar's research has just begun to determine how many other homes the Miami company built in earlier years in Florida that contain Chinese drywall, which causes metal corrosion, foul smells, and physical irritation to some individuals.
Lennar initiated the research for Chinese drywall in response to 43 lawsuits from homeowners that have been filed against the homebuilder in state and federal courts.
"The company is currently unable to reasonably estimate its future exposure relating to defective Chinese drywall," according to Lennar's second quarter filing with the Securities and Exchange Commission. "However, the company is continuing its investigation of homes it delivered during the relevant time period in order to determine whether there are additional homes, not yet inspected, with defective Chinese drywall and resulting damage."
Based on the initial findings, Lennar has set aside nearly $40 million to repair about 400 single-family houses in Florida with the defective drywall but is prepared to increase that amount based on future findings, according to the SEC filing.
Florida is estimated to have about one-third of the 100,000 single-family homes constructed nationwide with defective Chinese drywall, according to CondoVultures.com.
This estimate does not include defective Chinese drywall that may have been used to build out some of the high-rise condo towers that were developed throughout the state during the boom years of 2003 to 2007.
At least one high-end condo tower in Greater Miami is known to have defective Chinese drywall present and several other new skyscrapers are suspected of also having the defect present, said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
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Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami™ and Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.
Copyright © 2009, Condo Vultures® LLC
Showing posts with label litigation. Show all posts
Showing posts with label litigation. Show all posts
Tuesday, July 14, 2009
Thursday, April 2, 2009
Up To 36,000 Florida Homes Contain Chinese Dry Wall: Report
Up to 36,000 single-family houses in Florida and 100,000 homes nationwide are estimated to contain the sulfur-smelling, metal tarnishing, appliance ruining, wire corroding, Chinese dry wall, according to the South Florida Sun-Sentinel.
No estimates have yet been made public on the number of condominiums units - where a typical project will have 300 to 500 residences a single tower - built out in the United States with the sulfur-scented Asian wallboard.
"Expectations are that the same regions that are now struggling with an oversupply of new condos built during the boom years could soon be faced with the added challenge of Chinese dry wall," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "South Florida, Las Vegas, and San Diego are three areas that we could envision having a problem."
Developers imported dry wall in large quantities from China during the building boom years of 2003 to 2007 in response to rising prices and a shortage of materials.
Some of that drywall now hung in homes and condos across the nation was created with a combination of ingredients that puts off a sulfurous smell, ruins electronics, and corrodes wiring.
Headaches, nose bleeds, and sore throats are the typical health complaints made by individuals living in homes with Chinese dry wall.
Litigators are now organizing homeowners in hopes of negotiating with developers to replace the Chinese dry wall and corroded wiring, and provide reimbursements for the damaged electronics and appliances.
State and federal officials and politicians are also scrambling to better understand the problem.
The Florida Department of Health is studying the issue after receiving more than 100 complaints. U.S. Sen. Bill Nelson, D-Fla., has introduced a bill that calls for a "recall and an immediate ban" on the problematic Chinese dry wall, according to the Sun-Sentinel.
"In the end, the Chinese dry wall will be replaced," Zalewski said. "The question is, who will pay for it?"
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter's blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database . Our new book Miami's Great Condo Crash: A Chronicle of the Boom and Bust is now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database.
Copyright © 2009, Condo Vultures® LLC
No estimates have yet been made public on the number of condominiums units - where a typical project will have 300 to 500 residences a single tower - built out in the United States with the sulfur-scented Asian wallboard.
"Expectations are that the same regions that are now struggling with an oversupply of new condos built during the boom years could soon be faced with the added challenge of Chinese dry wall," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "South Florida, Las Vegas, and San Diego are three areas that we could envision having a problem."
Developers imported dry wall in large quantities from China during the building boom years of 2003 to 2007 in response to rising prices and a shortage of materials.
Some of that drywall now hung in homes and condos across the nation was created with a combination of ingredients that puts off a sulfurous smell, ruins electronics, and corrodes wiring.
Headaches, nose bleeds, and sore throats are the typical health complaints made by individuals living in homes with Chinese dry wall.
Litigators are now organizing homeowners in hopes of negotiating with developers to replace the Chinese dry wall and corroded wiring, and provide reimbursements for the damaged electronics and appliances.
State and federal officials and politicians are also scrambling to better understand the problem.
The Florida Department of Health is studying the issue after receiving more than 100 complaints. U.S. Sen. Bill Nelson, D-Fla., has introduced a bill that calls for a "recall and an immediate ban" on the problematic Chinese dry wall, according to the Sun-Sentinel.
"In the end, the Chinese dry wall will be replaced," Zalewski said. "The question is, who will pay for it?"
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter's blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database . Our new book Miami's Great Condo Crash: A Chronicle of the Boom and Bust is now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database.
Copyright © 2009, Condo Vultures® LLC
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