10/21/02

LC021021

VAL ZAVALA>> ON LIFE AND TIMES TONIGHT --

JESS MARLOW>> L.A.’S NEW URBAN PIONEERS LOVE THE THRILL OF LIVING DOWNTOWN, BUT THEY’RE THE FIRST TO ADMIT THEY HAVE TO MAKE SOME SACRIFICES.

GAY YEE>> WHAT DOES IT TAKE TO LIVE DOWN HERE? WHAT TYPE OF PERSONALITY?

JASON 71>> ADAPTABILITY. YOU HAVE TO BE ABLE TO ADAPT TO YOUR SURROUNDINGS AND BE A SWISS ARMY KNIFE TO WHATEVER COMES YOUR WAY.

VAL>> WHEN THE MARKET GOES SOUR, WHERE SHOULD YOU PUT YOUR MONEY? SOME SAY GO TO REAL ESTATE, BUT OUR LEGAL EXPERT, JUDGE KEVIN ROSS, SAYS INVESTORS SHOULD LOOK BEFORE THEY LEAP ONTO THE REAL ESTATE BANDWAGON.

JESS>> WHEN SHE WAS ALIVE, SHE WAS VIRTUALLY UNKNOWN AND THEN SUDDENLY, AFTER SHE DIED, MEXICAN PAINTER, FRIDA KAHLO, GOT FAMOUS. HOLLYWOOD HAS BEEN TRYING TO TELL HER STORY FOR MORE THAN A DECADE AND NOW A FILM ON FRIDA’S LIFE HAS FINALLY MADE IT TO THE SCREEN. TONIGHT WE’LL MEET THE DIRECTOR.

VAL>> THESE STORIES COMING UP NEXT ON LIFE AND TIMES TONIGHT.

LIFE AND TIMES TONIGHT IS MADE POSSIBLE BY THE FOLLOWING FOUNDATIONS:

THE L.K. WHITTIER FOUNDATION
DEDICATED TO IMPROVING THE QUALITY OF LIFE BY SUPPORTING INNOVATIVE ENDEAVORS IN THE FIELDS OF MEDICINE, HEALTH, SCIENCE AND EDUCATION.

AND THE CALIFORNIA ENDOWMENT
THE STATE'S LARGEST HEALTH FOUNDATION SUPPORTING ORGANIZATIONS THAT DIRECTLY IMPROVE THE HEALTH AND WELL-BEING OF CALIFORNIA'S DIVERSE COMMUNITIES. THE CALIFORNIA ENDOWMENT, A PARTNER FOR HEALTHIER COMMUNITIES.

VAL>> GOOD EVENING, I’M VAL ZAVALA.

JESS>> AND I’M JESS MARLOW. IF YOU’RE LOOKING FOR A PLACE TO LIVE, DOWNTOWN LOS ANGELES MAY NOT BE AT THE TOP OF YOUR LIST. BUT FOR A NEW GROUP OF URBAN PIONEERS, L.A.’S CONCRETE CANYONS ARE AN IDEAL SPOT.

VAL>> THEY’RE ACTUALLY ATTRACTED BY THE GRIT OF DOWNTOWN LIVING, BUT WHO ARE THESE PEOPLE AND WHY ARE THEY WILLING TO FORGET THE COMFORTS AND CONVENIENCES OF SUBURBAN LIFE? TONIGHT GAY YEE TRIES TO FIND OUT.

JASON 71>> HELLO. WELCOME. MY NAME IS JASON 71. I LIVE IN A LOFT HERE DOWNTOWN.

GAY YEE>> HE GOES BY THE NAME OF JASON 71. HE'S ONE OF HUNDREDS OF URBAN PIONEERS BLAZING A TRAIL BACK INTO L.A.'S DOWNTOWN CORE.

JASON 71>> THIS IS THE KITCHEN AREA...

GAY YEE>> JASON LIVES IN THE HELMAN BUILDING IN THE HISTORIC BANK DISTRICT. HIS TRENDY 800-SQUARE-FOOT LOFT AT FOURTH AND MAIN WAS ONCE A BLIGHTED OFFICE BUILDING. JASON SAYS HE'S TAILOR-MADE FOR DOWNTOWN LIVING. HE'S A SELF-EMPLOYED MUSICIAN, ARTIST, PHOTOGRAPHER AND GRAPHICS DESIGNER. HE WORKS OUT OF HIS HOME AND RARELY, IF EVER, NEEDS A CAR.

GAY YEE>> HOW ANTI-L.A.

JASON 71>> EXACTLY (LAUGHTER)

GAY YEE>> JASON SAYS, LIKE HIMSELF, MOST OF HIS NEIGHBORS CAME HERE IN SEARCH OF THE KIND OF BIG CITY LIVING FOUND IN NEW YORK OR CHICAGO, BUT THERE ARE UP SIDES AND DOWN SIDES.

JASON 71>> HELLO, HELLO.

GAY YEE>> JASON CATCHES A GLIMPSE OF BOTH EVERY TIME HE STEPS OUTSIDE HIS DOOR TO THE LOCAL COFFEE SHOP ACROSS THE STREET. SIPPING HIS COFFEE AND DIET COKE AT A TABLE OUTSIDE, YOU CAN SEE WHAT JASON IS TALKING ABOUT JUST OVER HIS SHOULDER.

JASON 71>> DOWN ON THAT STREET, DOWN ON THAT CORNER, IT'S A LITTLE BIT ROUGHER, DRUG DEALS AND STUFF LIKE THAT, BUT IT IS CLEANING UP.

GAY YEE>> BUT YOU SEE THEM ALL THE TIME?

JASON 71>> YEAH.

GAY YEE>> THERE'S ALSO A HOMELESS SHELTER JUST DOWN THE STREET.

JASON 71>> YOU KNOW, A LOT OF THE INDIGENOUS PEOPLE ARE, YOU KNOW, A LITTLE BIT CUCKOO, SO IT MAKES FOR AN INTERESTING TIME.

GAY YEE>> DURING THE 1920'S AND 1930'S, DOWNTOWN WAS WHERE L.A. CAME TO WORK AND TO PLAY. THE CITY'S GREATEST COLLECTION OF ARCHITECTURE CAN STILL BE FOUND HERE FROM THE WORLD-FAMOUS BRICK AND IRON BRADBURY BUILDING TO THE LEGENDARY MOVIE PALACES ON BROADWAY. BUT OVER THE YEARS, THE NEIGHBORHOOD FELL INTO DEEP DECAY. MANY OF THE ONCE GRAND OFFICE BUILDINGS ARE RENTED TO MOM AND POP STORES OR CHEAP SOUVENIR KNICK-KNACK SHOPS. ONLY NOW THERE'S A GLIMMER OF REVITALIZATION.

A KEY INGREDIENT IN THIS TURNAROUND IS PEOPLE, PEOPLE WILLING TO MAKE DOWNTOWN THEIR HOME. IT'S TRUE DOWNTOWN LACKS SOME OF THE COMFORTS PEOPLE HAVE GROWN USED TO LIKE GOING TO A SUPERMARKET OR A CONVENIENCE STORE IF YOU RUN OUT OF MILK IN THE MIDDLE OF THE NIGHT. BUT LIKE THE PIONEERS OF THE PAST, PEOPLE HERE HAVE LEARNED TO FORAGE FOR WHAT THEY NEED.

JASON 71>> YEAH, I'VE GOT MY BIKE NOW. I'M GOING TO TAKE OFF FOR THE GRAND CENTRAL MARKET.

GAY YEE>> PEOPLE LIKE JASON ARE LEARNING TO TAKE ADVANTAGE OF WHAT'S AVAILABLE AROUND THEM.

JASON 71>> YOU CAN JUMP ON YOUR BIKE, AS I OFTEN DO, AND JUST PICK A DIRECTION AND GO. THERE'S JUST SO MUCH DIVERSITY AND CULTURE GOING ON THAT YOU CAN JUST TAKE PART IN IT.

GAY YEE>> HE BUYS TOOTHBRUSHES IN THE TOY DISTRICT, GROCERIES AT THE GRAND CENTRAL MARKET TWO BLOCKS AWAY, BUT JASON IS THE FIRST TO TELL YOU THAT LIVING DOWNTOWN IS NOT FOR EVERYONE. TO LIVE DOWN HERE, YOU NEED --

JASON 71>> ADAPTABILITY. YOU HAVE TO BE ABLE TO ADAPT TO YOUR SURROUNDINGS AND BE A SWISS ARMY KNIFE TO WHATEVER COMES YOUR WAY.

TOM GILMORE>> WELL, THIS IS PRETTY TYPICAL.

GAY YEE>> DEVELOPER, TOM GILMORE, HAS RENOVATED THREE DOWNTOWN BUILDINGS SO FAR AND HAS PLANS FOR MORE.

TOM GILMORE>> NOW THAT PEOPLE ARE BEGINNING TO BE VERY, VERY TIRED OF SITTING ON HIGHWAYS FOR THEIR ENTIRE LIVES, THEY'RE LOOKING FOR AN URBAN LIFESTYLE TO TAP INTO.

GAY YEE>> BUT THE PATH TO DOWNTOWN RENEWAL STILL HAS A POTHOLE OR TWO. GILMORE HAS BEEN CRITICIZED BY A TENANTS GROUP OF CUTTING CORNERS ON SAFETY IN HIS BUILDINGS.

TOM GILMORE>> IF I WERE LETTING PEOPLE INTO A BUILDING THAT WASN'T SAFE, THE GUY WHO'S ON THE HOOK BIGGEST THERE IS ME. I OPEN MYSELF UP TO THE LARGEST LIABILITY YOU CAN IMAGINE, SO I REQUIRE THAT SOMEBODY IN THE BUILDING DEPARTMENT OR THE FIRE DEPARTMENT SIGNS OFF AND SAYS, "YES, YOU MAY OCCUPY THIS BUILDING", AND THAT'S WHAT WE GOT.

GAY YEE>> TENANTS WE TALKED WITH DON'T SEEM WORRIED.

JOHN LINDAVER>> I LIVE IN, YOU KNOW, ONE OF THE BIGGER SPACES HERE AND EVERY SQUARE INCH OF THAT THING IS COVERED WITH FIRE SPRINKLER OUTLETS. YOU KNOW, TO ME, THAT'S SO NOT AN ISSUE.

GAY YEE>> LIKE PIONEERS ANYWHERE, THE DOWNTOWN DWELLERS LIKE JASON ARE ADVENTUROUS, OPTIMISTIC, DETERMINED, AND THEY'VE LEARNED TO RELY ON EACH OTHER.

JASON 71>> IT'S WONDERFUL. I MEAN, THE INTERACTION YOU HAVE WITH OTHER PEOPLE AND THE SENSE OF COMMUNITY WHEN I THOUGHT THERE WOULD BE MORE OF A SENSE OF ISOLATION. IT'S A VERY UNIQUE PLACE TO LIVE.

JESS>> GAY YEE JOINS US NOW. THE ARGUMENT WAS ALWAYS THERE WAS NOTHING DOWNTOWN IN THE EVENING, NOTHING TO DO.

GAY YEE>> APPARENTLY, THAT’S CHANGING. THERE’S A NEW HOTEL DOWN THERE CALLED THE STANDARD. ALL THE TENANTS SAY THE HOT PLACE TO BE. THERE’S A NEW RESTAURANT COMING IN CALLED PETE’S BISTRO. IT’S AT THE SAN FERNANDO BUILDING WHICH IS JUST ACROSS THE STREET FROM WHERE JASON LIVES. SO THINGS ARE PICKING UP DOWN THERE.

JESS>> THE PLACE IS JUMPING.

GAY YEE>> (LAUGHTER) IT’S STARTING TO. IT REALLY IS.

VAL>> JASON, HE’S A REAL CHARACTER. NOW HOW MUCH DOES HE PAY? HE’S GOT, WHAT, ABOUT EIGHT HUNDRED SQUARE FEET?

GAY YEE>> HE HAS ABOUT EIGHT HUNDRED SQUARE FEET. HE PAYS LESS THAN $1,000, SO IT’S QUITE AFFORDABLE, BUT THINGS ARE CHANGING. THERE ARE A LOT MORE APARTMENTS COMING IN AND THERE’S A LOT MORE DEMAND. THERE ARE A LOT MORE PEOPLE WHO ARE INTERESTED AND IT’S DRIVING THE PRICE UP.

JESS>> BUT IS THERE A RESISTANCE TO GENTRIFICATION?

GAY YEE>> VERY MUCH SO. IN FACT, THAT’S WHAT JASON TALKED ABOUT. HE SAID IF ANYBODY IS A LITTLE SNIPPY ABOUT US COMING IN, IT’S THE OLD-TIMERS WHO ARE SAYING THAT IT’S NO LONGER THE ARTISTS THAT ARE HERE, BUT WE’RE SEEING PEOPLE WHO ARE, YOU KNOW, YUPPIES IN HIS MIND OR BACKWARD AND PEOPLE WHO ARE PROFESSIONALS ARE THERE BECAUSE THEY WORK IN THE DOWNTOWN AREA. SO IT IS BEING GENTRIFIED AND THEY’RE NOT TOO HAPPY ABOUT IT.

VAL>> AND HOW MANY LOFTS ARE BEING BUILT? BECAUSE THERE’S OBVIOUSLY A DEMAND FOR THIS KIND OF LIFESTYLE. IS THERE LIKE A CERTAIN NUMBER ON THE BOOKS RIGHT NOW?

GAY YEE>> IT’S TRULY EXPANDING. THERE’S A NEW BUILDING COMING IN, THE HISTORIC ARCADE BUILDING ON SPRING STREET. ABOUT 142 NEW LOFTS WILL BE COMING IN.

VAL>> REALLY?

GAY YEE>> BY THIS TIME NEXT YEAR, WE’RE EXPECTING TO SEE A TREMENDOUS NUMBER OF LOFTS DOWN THERE AND POSSIBLY THE INFLUX OF PERHAPS SCHOOLS MOVING IN.

JESS>> BUT WE’RE TALKING ABOUT LOFTS. THESE ARE NOT BARE BUILDINGS. I MEAN, SOME OF THESE HAVE BEEN UTILIZED AND --

GAY YEE>> -- BASICALLY, THEY TOOK THE OLD OFFICE SPACE THAT DIDN’T HAVE VERY MUCH TO IT AND THEN STARTED TO WORK IN SMALL KITCHENETTES, MORE LIKE A STUDIO APARTMENT. BUT IT ISN’T THE SITUATION OF THE CLASSIC LOFTS WHERE ARTISTS HAD TO MOVE IN AND HAD TO PUT IN THEIR OWN THINGS, THEIR OWN KITCHENETTES, THEIR OWN REFRIGERATORS, THEIR OWN BATHROOMS. IT’S ALREADY SET AND MADE FOR THEM, SO MUCH MORE CONVENIENT.

VAL>> VERY GOOD. WELL, EXCITING, ADVENTUROUS LIVING. HE’S A FUN GUY, JASON.

GAY YEE>> HE IS A FUN GUY (LAUGHTER).

VAL>> AND HE’LL NEVER FORGET HIS NAME (LAUGHTER).

GAY YEE>> NO.

VAL>> TOMORROW ON LIFE AND TIMES, WE WILL MEET THE SON OF LEGENDARY AUTHOR, JOHN STEINBECK, AND WE’LL GET HIS THOUGHTS ON THE CLASSIC CALIFORNIA STORY THAT EVERYBODY IS BEING URGED TO READ: “THE GRAPES OF WRATH”.

>> GUTHRIE WROTE A GREAT SONG. I’M SORT OF PROUD TO SAY THAT THE GUTHRIE FAMILY AND THE STEINBECK FAMILY ARE SORT OF LINKED BY DISTANT MARRIAGE NOW. WHEN HE WROTE THE SONG, “IF YOU DON’T HAVE THE DO-RE-MI”, WHICH TALKS ABOUT THE DIFFICULTY OF GETTING INTO CALIFORNIA AS MIGRANT WORKERS, MY FATHER SENT HIM A LETTER AND SAID, “IF YOU’D WRITTEN THAT SONG A YEAR EARLIER, YOU COULD HAVE SAVED ME A WHOLE DAMNED NOVEL.”

JESS>> AS THE STOCK MARKET FLUCTUATES AND FALLS, INVESTORS’ ANXIETIES RISES AND THAT’S WHY MANY PEOPLE ARE BAILING OUT OF STOCKS ENTIRELY AND PUTTING THEIR MONEY INTO REAL ESTATE. BUT OWNING PROPERTY ISN’T RISK-FREE AND IT MAY INCLUDE SOME LEGAL TRAPS IF INVESTORS AREN’T CAREFUL. THE TRICK IS KNOWING WHERE TO LOOK AND UNDERSTANDING HOW TO PROTECT YOURSELF.

VAL>> AND JOINING US NOW IS LOS ANGELES SUPERIOR COURT JUDGE, KEVIN ROSS. AND ALSO WITH HIM IS GREG GORMAN, AN ATTORNEY SPECIALIZING IN REAL ESTATE LAW. WELCOME, BOTH OF YOU, TO LIFE AND TIMES.

JUDGE KEVIN ROSS>> ALWAYS A PLEASURE.

GREG GORMAN>> THANK YOU.

JESS>> AT THE VERY BEGINNING, IS THIS THE TIME TO PUT YOUR MONEY INTO -- I REALIZE YOU’RE NOT A STOCK ADVISOR (LAUGHTER) -- BUT PUT YOUR MONEY IN REAL ESTATE RATHER THAN THE STOCK MARKET?

JUDGE KEVIN ROSS>> WELL, WHAT’S INTERESTING, JESS, ABOUT THE WHOLE REAL ESTATE MARKET, ESPECIALLY HERE IN CALIFORNIA, IS THAT THE MEDIAN PRICES ARE GOING THROUGH THE ROOF. I THINK IN ORANGE COUNTY, A MEDIAN PRICE HOME IS ALMOST UP TO $400,000. IN L.A. COUNTY, IT’S SOMEWHERE ALMOST OVER $300,000. YOU HAVE SAN BERNARDINO AND RIVERSIDE COUNTIES TAKING ADVANTAGE OF ALL THE PEOPLE WHO WANT TO BUY HOMES IN LOS ANGELES, SO THEY’RE MOVING OUT. SO IT’S REALLY AN EXCITING TIME FOR REAL ESTATE, BUT THERE ARE SOME LEGAL ISSUES THAT COME UP WHEN YOU LOOK AT PURCHASING A HOME.

VAL>> AND, IN FACT, AS THE PRICES GO UP AND THE STAKES ARE HIGHER, IT'S A BIGGER INVESTMENT. LITIGATION PROBLEMS AND SO FORTH, AND LEGAL ISSUES HAVE TO BE DEALT WITH MUCH MORE SERIOUSLY BECAUSE YOU HAVE A LOT AT STAKE, RIGHT?

GREG GORMAN>> I THINK THAT'S EXACTLY THE PROBLEM RIGHT NOW AS REAL ESTATE, PARTICULARLY RESIDENTIAL REAL ESTATE, HAS BECOME AN INVESTMENT VEHICLE. PEOPLE LOOK AT IT WITH AN INVESTMENT EYE. YOU'RE GETTING FIFTEEN OR TWENTY PERCENT RETURN ON REAL ESTATE NOW AND YOU'RE CERTAINLY NOT GETTING THAT IN THE STOCK MARKET.

VAL>> WHAT ARE SOME OF THE MOST COMMON DISPUTES THAT REVOLVE AROUND A REAL ESTATE TRANSACTION?

GREG GORMAN>> I THINK YOU'RE SEEING TWO PRIMARY THINGS. FIRST OF ALL, YOU HAVE SELLERS WHO WANT TO BACK OUT OF THE DEAL BECAUSE THEY CAN SELL IT TO SOMEONE ELSE CHEAPER, SO THEY'LL --

VAL>> -- YOU MEAN, SELL IT FOR MORE?

GREG GORMAN>> SELL IT FOR MORE, EXACTLY.

JESS>> THAT'S PARTICULARLY TRUE WHEN YOU'RE FINDING SOME HOUSES SELLING FOR MORE THAN THE LISTED PRICE.

GREG GORMAN>> THAT'S A VERY, VERY COMMON OCCURRENCE, PARTICULARLY DOWN IN ORANGE COUNTY. YOU CAN PUT A HOUSE OUT ON THE MARKET AND HAVE IT SOLD WITHIN A WEEK FOR MORE THAN THE ASKING PRICE.

VAL>> SO IF I MADE AN OFFER AND IT WAS ACCEPTED, CAN I HOLD THAT SELLER TO THAT? WHAT HAPPENS IF THE SELLER, YOU KNOW, BACKS OUT AND SELLS IT SOMEBODY ELSE FOR MORE? WHAT RECOURSE DO I HAVE?

GREG GORMAN>> USUALLY, YOU CAN HOLD THEM TO IT. YOU'D HAVE TO FILE A LAWSUIT FOR SPECIFIC PERFORMANCE TO GET THE SELLER TO SPECIFICALLY PERFORM THAT CONTRACT. THAT'S BASICALLY HOLDING UP THE PROPERTY UNTIL THE COURT MAKES A DECISION. THAT'S THE MOST COMMON REMEDY FOR BUYERS.

VAL>> HOW MANY PEOPLE DO THAT? BECAUSE A LOT OF PEOPLE SAY, OH, IT'S JUST NOT WORTH IT. I DON'T HAVE THE TIME OR MONEY.

JUDGE KEVIN ROSS>> IT CUTS BOTH WAYS BECAUSE, IF YOU'RE THE SELLER AND YOU DECIDE, NO, I WANT TO TRY TO GET A HIGHER PRICE AND THEN YOU'RE SUED, YOU NOW HAVE A JUDGMENT ON YOUR RECORD. THESE AREN'T SMALL CLAIMS CASES. THESE ARE CASES OF LIMITED JURISDICTION, WHICH MEANS THAT YOU, AS A SELLER -- OFTENTIMES, PEOPLE WHO ARE SELLING ARE LOOKING AT REPURCHASING AS WELL. SO WHEN YOU LOOK AT YOUR CREDIT REPORT, IF YOU HAVE A JUDGMENT AGAINST YOU, THAT COULD HAVE A NEGATIVE IMPACT. THEN YOU ALSO HAVE THE ISSUE OF ARBITRATION VERSUS ACTUALLY GOING THROUGH THE COURT SYSTEM, WHICH IS SOMETHING THAT GREG AND I WERE TALKING ABOUT AS RELATES TO THOSE PROVISIONS THAT ALLOW FOR ARBITRATION AS OPPOSED TO GOING THROUGH THE COURT SYSTEM.

VAL>> DO MOST PEOPLE DO ARBITRATION IN THESE SITUATIONS? BECAUSE YOU DON'T REALLY HAVE TIME. WHEN YOU'RE TRYING TO BUY A HOUSE, YOU DON'T REALLY WANT TO BE CAUGHT UP IN LITIGATION FOR YEARS.

GREG GORMAN>> I THINK, TRADITIONALLY, PEOPLE DID OPT FOR THE ARBITRATION. HOWEVER, IN THE LAST FIVE YEARS, THE CALIFORNIA COURT SYSTEM HAS REALLY SPED UP. IT USED TO BE IT WOULD TAKE SIX OR SEVEN YEARS TO GET TO TRIAL. THAT'S SIMPLY NOT THE CASE NOW, SO GOING TO COURT IS A VIABLE ALTERNATIVE. YOU WILL FIND A LOT OF PEOPLE, TRADITIONALLY BUYERS, WHO'LL JUST SAY I'LL GO GET ANOTHER HOUSE. BUT AN INTERESTING THING ABOUT BUYING A HOUSE IS NOW IT'S AN INVESTMENT AND IT'S ALSO AN EMOTIONAL INVESTMENT, SO IT'S ABOUT MORE THAN MONEY. SO I'M FINDING AN INCREASE IN LITIGATION REGARDING HOUSES.

JESS>> NOW WHEN YOU'VE GOT CONFLICTS LIKE THIS, THERE IS AN ALTERNATIVE TO GOING TO A LAWYER OR GOING TO THE COURTS. WHAT ABOUT THE BROKER? SHOULDN'T THEY HELP RESOLVE THESE ISSUES? MOST PEOPLE DEPEND ON THE BROKERS TO TELL THEM WHAT'S RIGHT AND WRONG.

JUDGE KEVIN ROSS>> IT'S SO INTERESTING THAT YOU MENTION ABOUT THE BROKER BECAUSE ONE OF THE THINGS THAT'S COME UP THROUGH OUR DISCUSSION IS THAT MORE AND MORE OF THE BROKERS ARE TRYING TO RELIEVE THEMSELVES OF LIABILITY, SO EVEN IN THOSE BROKER AGREEMENTS --

JESS>> -- THAT'S WHERE THE ARBITRATION COMES IN, HUH? (LAUGHTER)

GREG GORMAN>> ABSOLUTELY. YOU WILL FIND THAT, AS A PRACTICAL MATTER, BROKERS GIVE A LOT OF ADVICE. THEY GIVE WHAT LAWYERS WOULD CONSIDER TO BE LEGAL ADVICE. THEY'LL GIVE YOU ADVICE ABOUT YOUR BOUNDARIES OF THE PROPERTY, ETC. BUT WHEN YOU REALLY LOOK AT THE CONTRACT, IT SAYS THE BROKER DOESN'T DO THAT AND THAT YOU'RE NOT RELYING ON THEM. SO YOU HAVE A CONFLICT BETWEEN THE CONTRACT DOCUMENTS AND WHAT THEY'RE DOING, AND A LOT OF LAWSUITS ARE ABOUT THAT.

VAL>> WHAT HAPPENS WHEN THE BUYER WANTS TO BACK OUT? THEY GET BUYER'S REMORSE OR WHATEVER, WHAT HAPPENS THEN? WHAT CAN THE SELLER DO?

JUDGE KEVIN ROSS>> THE ISSUE OF LIQUIDATED DAMAGES. GREG, DO YOU WANT TO TALK ABOUT THAT?

GREG GORMAN>> ABSOLUTELY. MOST CONTRACTS HAVE A LIQUIDATED DAMAGES PROVISION WHICH MOST SELLERS SIGN ONTO. IT'S A PART OF THE CONTRACT WHICH SAYS IF THE BUYER BACKS OUT, THEN THE SELLER GETS TO TAKE THE DEPOSIT. THE DEPOSIT CAN'T BE MORE THAN THREE PERCENT OF THE PURCHASE PRICE. SO USUALLY WHEN THE BUYER BACKS OUT, HE KNOWS HE'S GIVING UP THE DEPOSIT.

JUDGE KEVIN ROSS>> BUT, AGAIN, KEEP IN MIND THAT, IN ORDER TO GET THOSE MONIES, YOU HAVE TO GO TO COURT. SO YOU NOW HAVE A BUYER THAT, IF THEY'RE FACED WITH A JUDGMENT, THEY'RE STILL TRYING TO BUY A HOME AND NOW, ON THEIR CREDIT REPORT, IT'S SHOWING A JUDGMENT AGAINST THEM. IT'S NOT IN THEIR BEST INTEREST TO DO THAT AS WELL.

VAL>> THAT'S WHY A LOT OF PEOPLE ACTUALLY -- THE TRUTH IS, WHEN THAT HAPPENS, THEY SAY, OH, FORGET IT. LET'S JUST BOTH PART WAYS AND GO ON.

JUDGE KEVIN ROSS>> EXACTLY, BUT THE BIGGEST ISSUE RIGHT NOW IN TERMS OF LITIGATION -- AND THAT WAS SOMETHING THAT I WAS SURPRISED TO FIND OUT ABOUT -- WAS THIS WHOLE NOTION OF DISCLOSURE STATEMENT.

JESS>> OH, YES.

GREG GORMAN>> ABSOLUTELY. A FEW YEARS BACK --

JESS>> -- ANYTHING WRONG WITH YOUR HOUSE? NAAA. (LAUGHTER)

VAL>> NOT TO THE BEST OF MY KNOWLEDGE (LAUGHTER).

GREG GORMAN>> (LAUGHTER) THAT'S EXACTLY WHAT IT IS. THE LEGISLATURE STARTED THIS DISCLOSURE STATEMENT A FEW YEARS BACK THINKING THAT, IF WE REQUIRE THE SELLER TO DISCLOSE THINGS, IT WOULD MINIMIZE PROBLEMS. WELL, WHAT'S HAPPENED IS, THAT'S THE BASIS OF MOST OF THE PROBLEMS RIGHT NOW. YOU DISCLOSE NINE THINGS, BUT IT'S THE TENTH THING THAT GETS YOU. YOU TOLD ME THIS WAS LITTLE. WELL, IT WAS BIGGER --

JESS>> -- YOU SAID IT WAS MILDEW AND IT TURNS OUT TO BE BLACK MOLD, HUH?

GREG GORMAN>> ABSOLUTELY. ABSOLUTELY RIGHT.

VAL>> SO THIS TRIGGERS LITIGATION AFTER THE ESCROW IS CLOSED?

GREG GORMAN>> CORRECT.

VAL>> AND THEY CAN STILL GO BACK AND SAY YOU DIDN'T DISCLOSE EVERYTHING?

GREG GORMAN>> THAT'S RIGHT.

JESS>> BUT WE'RE CLEARLY SEEING MORE AND MORE OF THIS LITIGATION, ARE WE NOT?

GREG GORMAN>> ABSOLUTELY, ABSOLUTELY. I WOULD SAY THAT MY PRACTICE IN THIS SMALL NICHE AREA HAS PROBABLY INCREASED BY TEN-FOLD EASILY.

JUDGE KEVIN ROSS>> NOW ANOTHER AREA THAT'S ALSO STARTING TO SEE EXPANSION IS PREDATORY LENDING WHEN THE INDIVIDUAL IS TRYING TO TAKE ADVANTAGE OF THE BEST DEAL. SOME PEOPLE MAY NOT HAVE THE BEST CREDIT OR THEY'RE NOT AS SOPHISTICATED, SO THEY MAY GO WITH ENTITIES THAT TAKE ADVANTAGE OF THEM AND WE'RE SEEING THAT.

JESS>> THE COMMERCIAL THAT SAYS WE DEAL WITH BAD LOANS.

JUDGE KEVIN ROSS>> EXACTLY, AND WHAT WE'RE SEEING IS THAT, ACROSS THE COUNTRY, TWELVE STATES HAVE ENACTED THESE PREDATORY LAWS. SOME PEOPLE ARE SAYING THAT THEY CAN ACTUALLY HAVE AN ADVERSE EFFECT ON THOSE WHO WOULD NOT OTHERWISE QUALIFY. BUT AN ENTITY -- I BELIEVE IT'S HOUSEHOLD INTERNATIONAL -- JUST SETTLED A $500 MILLION DOLLAR SETTLEMENT BECAUSE THEY WERE ENGAGING IN THESE TYPES OF PREDATORY LENDING OFFENSES.

VAL>> SO BUYER AND SELLER BEWARE.

JUDGE KEVIN ROSS>> EXACTLY.

VAL>> JUDGE KEVIN ROSS, THANK YOU SO MUCH. GREG GORMAN, REAL ESTATE ATTORNEY, THANK YOU FOR COMING IN.

GREG GORMAN>> THANK YOU.

LIFEANDTIMES@KCET.ORG
WWW.KCET.ORG.
LIFE AND TIMES TONIGHT
4401 SUNSET BLVD.
LOS ANGELES, CA 90027
(323) 953-5555

VAL>> MEXICAN PAINTER, FRIDA KAHLO -- AND YES, THAT IS THE ACTUAL PRONUNCIATION -- IS ONE OF THE WORLD'S MOST POPULAR FEMALE ARTISTS, BUT FRIDA'S APPEAL GOES BEYOND THE CANVAS. HER FASCINATING LIFE INCLUDED A LONG AND COMPLEX RELATIONSHIP WITH MURALIST, DIEGO RIVERA, A CONTROVERSIAL AFFAIR WITH LEON TROTSKY AND EVEN ROMANCES WITH OTHER WOMEN.

JESS>> NOW, NEARLY FIFTY YEARS AFTER HER DEATH, HER LIFE STORY IS BEING TOLD ON FILM. THE DIRECTOR IS JULIE TAYMOR, WHO BROUGHT "LION KING" TO BROADWAY WITH HER INNOVATIVE PUPPETRY AND MASKS. WE'LL SPEAK WITH TAYMOR AND WITH THE FILM'S COMPOSER, HER HUSBAND, ELLIOT GOLDENTHAL, IN A MOMENT, BUT FIRST A LOOK AT "FRIDA".

[FILM CLIP]

JESS>> "FRIDA" IS A FILM SUBJECT THAT HAS BEEN TRIED AND TESTED AND ABANDONED AND GONE AT AGAIN. WHAT ATTRACTED YOU TO FINALLY TRY IT?

JULIE TAYMOR>> WELL, I READ THE SCREENPLAY THAT WAS GIVEN TO ME TWO YEARS AGO AND IT TOTALLY MOVED ME. THE STORY OF FRIDA KAHLO, HER LIFE, WHICH WAS VERY FULL OF PAIN AND JOY AND A WOMAN WHO TRANSCENDED UNBELIEVABLE ODDS, AND IT ALSO IS AN EXTRAORDINARY ROMANCE OF THESE TWO GREAT MEXICAN ARTISTS THAT YOU WON'T BELIEVE. YOU CAN'T BELIEVE IT'S TRUE. I WAS VERY TOUCHED BY IT AND THOUGHT IT WAS A TREMENDOUS OPPORTUNITY ALSO TO GET TO THE HEART OF AN ARTIST IN A WAY THAT IS USUALLY DIFFICULT TO DO.

VAL>> AND ALSO WITH US HERE IS YOUR HUSBAND, ELLIOT, WHO IS A COMPOSER AND DID THE MUSIC FOR THIS PARTICULAR PIECE?

ELLIOT GOLDENTHAL>> YES.

VAL>> WHAT DID YOU GO FOR? WHAT DID YOU USE FOR YOUR INSPIRATION?

ELLIOT GOLDENTHAL>> I USED THE WORK OF THE DIRECTOR AND THE ACTING AND THEN THE ART DESIGN. IT WAS TREMENDOUSLY INSPIRATIONAL. OF COURSE, THE BACKDROP BEING MEXICO AND MEXICO CITY AT ITS MOST COSMOPOLITAN SOPHISTICATED DAYS IN THE 20'S, 30'S AND 40'S. SO IT WAS A RICH PALETTE IN WHICH TO WORK FROM.

JESS>> SO THE SCORE DRAWS ON MEXICAN CULTURE TOO?

ELLIOT GOLDENTHAL>> YES, IT DOES. I'M A GREAT PROPONENT OF MUSIC NOT HAVING TO NEED A PASSPORT OR A GREEN CARD. MUSIC IS SOMETHING THAT CAN ROAM FREE, YOU KNOW, WHEREVER.

VAL>> NOW THIS MOVIE IS NOT JUST ABOUT AN AMAZING WOMAN ARTIST, BUT OF HER RELATIONSHIP WITH ANOTHER ARTIST, DIEGO RIVERA. HERE'S A CLIP OF THE TWO OF THEM FROM "FRIDA". TAKE A LOOK.

[FILM CLIP]

JESS>> SEVERAL ACTRESSES LONGED FOR THAT JUICY ROLE. MADONNA, AMONG THEM. WHAT ATTRACTED YOU TO SELMA HAYEK?

JULIE TAYMOR>> WELL, SELMA HAYEK HAD THE JOB BEFORE I DID (LAUGHTER).

JESS>> (LAUGHTER) SHE BROUGHT IT TO YOU, DIDN'T SHE?

JULIE TAYMOR>> SHE BROUGHT IT TO ME. SHE'D BEEN ON IT FOR AT LEAST EIGHT YEARS AND SELMA IS THE ONLY ONE, IN MY OPINION, WHO COULD PLAY THIS PART. NOT ONLY BECAUSE SHE'S MEXICAN, NOT ONLY BECAUSE SHE LOOKS LIKE FRIDA KAHLO, WHICH IS VERY IMPORTANT AS FRIDA DID A LOT OF SELF-PORTRAITS, BUT SELMA HAS THE PASSION, THE SPIRIT, THE HUMOR, THE INTELLECT AND THE TALENT TO PLAY THIS ROLE THAT I DON'T THINK ANY OF THE OTHER WOMEN REALLY COULD DO.

JESS>> AND, APPARENTLY, THE TENACITY. EIGHT YEARS SHE HAD IT?

JULIE TAYMOR>> INCREDIBLE, INCREDIBLE.

VAL>> WHAT WAS IT LIKE WORKING TOGETHER? DO YOU STILL LIKE EACH OTHER AFTER THIS? (LAUGHTER) THAT'S AN INTENSE PROJECT.

ELLIOT GOLDENTHAL>> (LAUGHTER) WELL, WE WORKED TOGETHER BEFORE THERE WAS ANY KIND OF ROMANCE INVOLVED, SO WE CAN ALWAYS GO BACK TO THE WORKING RELATIONSHIP MODE (LAUGHTER). IT'S OUR SECOND MOVIE. WE'VE DONE OVER TWELVE OR -- I DON'T KNOW --

JULIE TAYMOR>> -- FIFTEEN OR SO.

ELLIOT GOLDENTHAL>> FIFTEEN THEATER PROJECTS AND WE'RE CONSTANTLY WORKING TOGETHER, SO IT'S A VERY NATURAL THING AND IT'S NOT ANY DIFFERENT THAN REALLY ANY OTHER COLLABORATION. YOU HAVE --

VAL>> -- WAS THERE EVER A TIME, THOUGH, WHEN SHE SAID THAT'S TOTALLY, TOTALLY WRONG? SHE SAID I WANT YOU TO DO SOMETHING COMPLETELY DIFFERENT? (LAUGHTER)

ELLIOT GOLDENTHAL>> THAT ALWAYS HAPPENS (LAUGHTER).

JULIE TAYMOR>> WE HAVE A DOOR. WE HAVE A NICE DOOR THAT WE CAN CLOSE BETWEEN THE WORK AND THE PRIVATE, BUT IT'S WONDERFUL WORKING TOGETHER. WE CAN DO IT ANYWHERE AND WE LOVE IT. HE'S SO ABLE AND VERSATILE TO GET INTO ANY OF THE MODES, SO WE ENJOY THAT TREMENDOUSLY.

JESS>> AS THE CREATOR OF "LION KING", YOU'VE GOTTEN A LOT OF ATTENTION. IS THAT SOMETHING YOU'RE TRYING TO LIVE DOWN? (LAUGHTER)

JULIE TAYMOR>> (LAUGHTER) NO. I JUST CAME FROM AUDITIONS AFTER FIVE YEARS FOR THE CHICAGO COMPANY OF "LION KING". NO, I LOVE "LION KING" AND I'M VERY PROUD OF IT AND I'LL CONTINUE TO BE INVOLVED IN IT WITH ALL ITS INCARNATIONS.

JESS>> BUT THIS IS GREATLY DIFFERENT THAN "LION KING", ISN'T IT?

JULIE TAYMOR>> IT'S GREATLY DIFFERENT.

VAL>> NO PUPPETS IN "FRIDA"?

JULIE TAYMOR>> WELL, THERE ARE ACTUALLY. YOU'RE GOING TO SEE A FEW. YOU'RE GOING TO SEE THE ONLY ONES THAT I DIDN'T DO THAT ARE PART OF A PUPPET ANIMATED SEQUENCE THAT THE BROTHERS QUAY DID. IT'S VERY MUCH INSPIRED BY THE MEXICAN DAY OF THE DEAD.

VAL>> NOW THIS NEXT CLIP DOES FEATURE SOME OF YOUR MUSIC AND IT ALSO FEATURES PROBABLY THE BIGGEST TURNING POINT IN HER LIFE. SHE WAS YOUNG -- HOW OLD WAS SHE WHEN SHE GOT IN THIS HORRIBLE, HORRIBLE BUS ACCIDENT?

JULIE TAYMOR>> ABOUT EIGHTEEN YEARS OLD.

VAL>> ABOUT EIGHTEEN YEARS OLD, HORRIBLE BUS ACCIDENT. SHE WENT THROUGH THIRTY-TWO SURGERIES. IT WAS A MIRACLE SHE SURVIVED.

JULIE TAYMOR>> AND SHE DID SURVIVE AND SHE LOVED LIFE. YET THIS MOMENT THAT YOU'RE SEEING IS PROBABLY THE DEFINING MOMENT THAT MADE HER AN ARTIST IN THE SENSE THAT SHE WAS THEN STUCK IN BED FOR TWO YEARS. HER PARENTS GAVE HER AN EASEL AND SHE STARTED TO REALLY PAINT, ESPECIALLY THE SELF-PORTRAITS.

JESS>> SO SHE WAS A PAINTER BEFORE SHE MET DIEGO RIVERA?

JULIE TAYMOR>> SHE WAS, BUT DIEGO WAS SOMEBODY THAT SHE WAS VERY DRAWN TO AS A PAINTER. HE WAS VERY FAMOUS. HE WAS A LEGEND.

VAL>> OH, THIS IS HARD TO WATCH.

JESS>> DRAMATIC MOMENT.

JULIE TAYMOR>> WE PICKED ONE OF THE MOST DRAMATIC AND THIS MOMENT THAT YOU'RE SEEING NOW IS SORT OF THE MOMENT SHE --

JESS>> -- SHE'S IMPALED.

JULIE TAYMOR>> SHE'S IMPALED AND YET SHE SURVIVED.

ELLIOT GOLDENTHAL>> FRIDA DESCRIBES THE SOUND AS BEING ALMOST SILENCE.

VAL>> SO THAT'S WHAT YOU WERE TRYING TO CREATE HERE?

[FILM CLIP]

VAL>> NOW THERE WE REALLY DO SEE SOME OF THE INNOVATION THAT YOU'RE FAMOUS FOR, WHETHER IT BE ON STAGE OR SCREEN. DIFFERENT MEDIUMS, SOUND EFFECTS, KIND OF SLASH MUSIC. THAT WAS AMAZING. SO YOU WERE OBVIOUSLY TRYING TO GET INTO HER SUBCONSCIOUS --

JULIE TAYMOR>> -- EXACTLY. YOU SAW THE CLIP WHERE HE'S PROPOSING MARRIAGE TO HER AND IT'S A BEAUTIFUL STORY OF THEIR RELATIONSHIP. BUT ALSO WE TRIED VERY HARD TO SHOW HER IMAGINATION, SO THERE ARE SCENES WHERE THE PAINTINGS COME ALIVE OR YOU SEE HOW FRIDA FELT ABOUT DEATH IN A KIND OF WHIMSICAL OR MACABRE WAY THAT IS ALSO VERY MEXICAN.

VAL>> WELL, CONGRATULATIONS ON NOT JUST BEING THE ONE THAT ACTUALLY MADE THIS FILM, BUT WHO APPARENTLY DID IT SO BEAUTIFULLY. WE'RE REALLY LOOKING FORWARD TO IT. JULIE TAYMOR, ELLIOT GOLDENTHAL, THANK YOU SO MUCH FOR BEING HERE.

JULIE TAYMOR>> THANK YOU FOR HAVING US.

ELLIOT GOLDENTHAL>> THANK YOU VERY MUCH.

JESS>> "FRIDA" OPENS THIS FRIDAY.

VAL>> THAT'S OUR PROGRAM FOR TONIGHT. THANKS SO MUCH FOR WATCHING.

JESS>> GOODNIGHT.

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