Countless buyers, who eagerly locked in prices during the Florida condo boom's height only to see the market collapse before their units were built, are suing to recoup their deposits and get out of their real estate purchase contracts.
There appear to be numerous cases in Palm Beach, Broward and Miami-Dade counties but the trend extends far beyond the glutted South Florida condo market:
According to Manatee County court records, buyers have filed dozens of suits against multiple developers.
Attorneys representing Buyers in Charlotte County and in Sarasota County, have filed at least five suits.
According to the St. Petersburg Times, Almost three dozen buyers in one condo in Tampa's Channelside district are suing the developer.
The Florida Department of Business and Professional Regulation said it opened investigations on 2,682 condominium complaints between July 1, 2006 and June 30, 2007 - a 44 percent jump from two years earlier demonstrating the fact that Buyers are increasingly complaining to state regulators.
According to Florida real estate observers, the unique nature of Florida's condo boom and bust are behind the rise in legal actions.
During the boom's 2004-05 height, investors busily purchased condos at pre-construction prices looking to flip the units for profits. Developers supplied the buying craze with plans to build numerous new condos, including as many as 3,000 in Manatee.
Labor shortages and hurricane-related supplies may have delayed construction or in some cases canceled construction outright. Early in 2006, as the first projects were nearing completion, the once-hot and sunny Florida market began to go cold and cloudy. As more units became available for sale, prices dropped in an overabundant market. The resale market basically disappeared.
Getting out of contracts
Investors, under contract for units have began seeking ways to get out of their contracts.
Lawsuits on behalf of some buyers generally alleging the developer broke the terms of the purchase contract - usually by failing to complete the unit on time, failing to build promised amenities, canceling projects or making other changes the lawsuits claim are "material and adverse" to buyers.
Developers generally argue the contracts remain valid, the delays were legally excusable and any changes were not detrimental to buyers.
Source : http://www.zimbio.com/
There appear to be numerous cases in Palm Beach, Broward and Miami-Dade counties but the trend extends far beyond the glutted South Florida condo market:
According to Manatee County court records, buyers have filed dozens of suits against multiple developers.
Attorneys representing Buyers in Charlotte County and in Sarasota County, have filed at least five suits.
According to the St. Petersburg Times, Almost three dozen buyers in one condo in Tampa's Channelside district are suing the developer.
The Florida Department of Business and Professional Regulation said it opened investigations on 2,682 condominium complaints between July 1, 2006 and June 30, 2007 - a 44 percent jump from two years earlier demonstrating the fact that Buyers are increasingly complaining to state regulators.
According to Florida real estate observers, the unique nature of Florida's condo boom and bust are behind the rise in legal actions.
During the boom's 2004-05 height, investors busily purchased condos at pre-construction prices looking to flip the units for profits. Developers supplied the buying craze with plans to build numerous new condos, including as many as 3,000 in Manatee.
Labor shortages and hurricane-related supplies may have delayed construction or in some cases canceled construction outright. Early in 2006, as the first projects were nearing completion, the once-hot and sunny Florida market began to go cold and cloudy. As more units became available for sale, prices dropped in an overabundant market. The resale market basically disappeared.
Getting out of contracts
Investors, under contract for units have began seeking ways to get out of their contracts.
Lawsuits on behalf of some buyers generally alleging the developer broke the terms of the purchase contract - usually by failing to complete the unit on time, failing to build promised amenities, canceling projects or making other changes the lawsuits claim are "material and adverse" to buyers.
Developers generally argue the contracts remain valid, the delays were legally excusable and any changes were not detrimental to buyers.
Source : http://www.zimbio.com/
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