The Real Deal Los Angeles

Wilshire home buyers sue sellers for not disclosing “mansionization” ordinance

Buyers wanted to a bigger a home, but say they weren't told they'd be limited
By Dennis Lynch | June 08, 2018 03:00PM

835 S. Orange Avenue

Two home buyers are suing the sellers of a Wilshire property and a Keller Williams agent for fraud, claiming they sold them a home without disclosing a restrictive ordinance that would prevent them from redeveloping the property.

In a suit filed in Los Angeles County Superior Court on Monday, Ilanit and Daniel Brook claim they purchased a home at 835 S. Orange Drive for $1.15 million in early 2016 with plans to tear it down and build a larger home. The sellers were Jeffrey and Ann Eggleston.

Unbeknownst to the buyers, the square footage of any new construction there was restricted by an Interim Control Ordinance, commonly called a “mansionization” ordinance, which had been adopted a few months prior. They claim the sellers knew of the ordinance and that Ann Eggleston had actively lobbied for the ordinance as a member of the Sycamore Square Neighborhood Association, according to local news reports.

The City Council adopted a permanent restrictive ordinance a month after the sale closed.

The Brooks say the sellers falsely represented the property when they claimed in a disclosure statement prior to the sale that there was no “ongoing or contemplated… change in zoning or general plan,” according to the suit. More broadly, they claimed that the seller had a duty to disclose any other “defects” associated with the property.

The Brooks implicated Egglestons’ agent, Steve Senigram of Keller Williams Realty Los Feliz, in the suit. They are seeking at least $1 million in damages and compensation for legal fees and costs.