Far Out Friday: Cash-paying millionaire loses out on 5,000 square feet

by MPA16 Jan 2015
A Hong Kong-based millionaire was absolutely horrified a few years ago, when he learned that his Malibu mansion was not 15,000 square feet like he thought when he paid $12.25 million in cash for it – so horrified, in fact, that he’s taking his agent and the brokerage to court. Again.

Hiroshi Horiike purchased the property – which he believed was the largest in Malibu – in 2007 after dismissing more than 80 other inferior properties. In reality, though, the oceanfront estate measures just 10,000 square feet – how embarrassing! Horiike took the agent – Realtor to the stars, Chris Cortazzo – and his brokerage to court in 2012. He lost that case, but has successfully appealed. He’s asking for $5 million in damages.

Here’s the ironic part: because Horiike, like a majority of Malibu homeowners, paid for his home in cash, no bank-ordered appraisal, which would have caught the discrepancy in square footage, was completed. If only Horiike wasn’t so rich, maybe then his heart wouldn’t have been broken by this house of lies. Yes, he’s absolutely torn apart over those 5,000 square feet. “I don't love my house,” he says. “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.”


Should CFPB have more supervision over credit agencies?