A Chinese millionaire is suing a well-known Malibu real estate broker to the stars, claiming the broker tricked him into buying a $12.25 million dollar home in 2007 by blatantly lying about the square footage. Stepping in on behalf of similarly vulnerable consumers, one might not be surprised to learn, is the venerable New York Times real estate section.
The buyer, Hiroshi Horiike, says Coldwell broker Chris Cortazzo assured him the home had 15,000 square feet of living space and was the largest property in Malibu. Horiike also alleges Cortazzo refused to provide blueprints for the home, which turned out to encompass less than 10,000 square feet. Cortazzo says his sales pitch came with a disclaimer and was based on the architect's estimate.
The underlying lawsuit, now on appeal in the Supreme Court of California, could end up providing a bright-line rule on what spaces are and aren't calculated in the square footage of a home in California.
But more interesting than that is the Times' subtle indictment of Cortazzo, who also reportedly represented Ellen DeGeneres, Pamela Anderson, Kid Rock and Josh Groban. Treading lightly, the Times notes that Cortazzo has a history with these sorts of allegations.
There have been questions about Mr. Cortazzo's listings before. In a lawsuit filed in the spring of 2012, another Malibu buyer, who also used a Coldwell broker, claimed that Mr. Cortazzo, working for the seller in the deal, made several misrepresentations about the property, including its square footage.
Part of that discrepancy is tied to the unpermitted construction Malibu residents undertake when they feel smothered by the county's 10,000 square foot home restrictions, one anonymous broker tells the Times. But still...
An examination by The New York Times of Mr. Cortazzo's listings over the last decade show numerous examples where the square footage cited by Mr. Cortazzo as the Coldwell listing agent is sometimes significantly larger than what public property records state.
...Did anything change when the lawsuit was filed seven years ago?
(Nearly all of Mr. Cortazzo's current listings match county assessment records.)
All potential fraud aside, how is this happening so often? Concludes the Times, none of the idiots involved in these multi-million dollar cash deals are bothering to assess their homes.
Here's some free advice, billionaires: assess what you're buying before you buy it.
Unfortunately this wisdom comes too late for Horiike, the Chinese millionaire, who bemoaned the innocence lost in the Malibu land scam.
"I don't love my house," Horiike told the Times. "It has become a bad dream. It has broken my heart and broke my dream about American people. Before, I thought everything here is beautiful. And perfect."
[image via Shutterstock]
