Finding a Florida Real Estate Attorney for Condo contract rescission and Deposit Recovery
Deposit Recovery Services has been created exclusively for individuals who have found themselves in condominium contract disputes. We have a very successful record of not only helping our clients to have their real estate contract rescinded prior to closing, but in almost every case we have gotten back some or all of the original deposit placed at contract signing.
Although the number of perspective clients contacting us has exploded in recent months, we take a very select number of files. This ensures our clients get the special treatment they deserve, we urge you to contact us for a FREE consultation as soon as possible. The more time we have to work with you prior to your scheduled closing date the greater our odds for success in your preconstruction or condominium contract dispute. Florida Developers are working with powerful lobbyists in Tallahassee to have contract laws changed to further favor developers. Many of which are now panicked as they have sold many units under the guise of "You'll never have to close", "we will help you flip the condo unit", and "all of our units are being resold prior to closing for huge profits". Did you here any of these claims from your developer, realtor, or mortgage broker?
Call or e-mail Deposit Recovery services today for a free consultation, remember almost all of our cases are handled on a contingency basis. Meaning that if we can not recover some or all of your deposit, we don't get paid. That's how confident we are that we can help you in your contract dispute.
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Florida Condo and Pre-Construction developer lawsuits
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First American shut down 84 Florida Real Estate Limited Partnerships
The U.S. Department of Housing and Urban Development and two Florida regulators today announced a legal settlement with First American Title Insurance Company for alleged violations of the Real Estate Settlement Procedures Act (RESPA) and similar state laws. HUD, the Florida Department of Financial Services (DFS), and the Florida Office of Insurance Regulation (OIR) claim First American made payments to scores of affiliated partnerships based on the referral of business to the title company.
Under the terms of the settlement agreement announced today, First American will shut down 84 partnerships and pay $5 million to the U.S. government and the State of Florida.
"Closing 84 affiliated partnerships and negotiating this significant monetary settlement is an outstanding example of ongoing cooperation between state regulators and HUD to enforce RESPA," said Brian Montgomery, HUD's Assistant Secretary for Housing and FHA Commissioner. "Our joint investigation found these partnerships were created to generate referrals in violation of RESPA and HUD's policies against sham affiliated business arrangements." The investigation found that over a number of years, First American formed or acquired limited partnerships in the State of Florida to act as title insurance agencies. While these partnerships were created as title insurance agencies, the joint investigation concluded that all regular title services were performed by First American. HUD, DFS and OIR claim the partnerships acted only as "pass throughs" to pay real estate agents, Mortgage Brokers, builders and other limited partners for referring business to First American. Section 8 of RESPA prohibits a person from giving or accepting anything of value in exchange for the referral of settlement service business. It also prohibits a person from giving or accepting any part of a charge for services that are not performed. First American further agreed that any future affiliated title company operating in Florida will: To read the settlement agreement announced today, visit HUD's website. --------------------------------------------------------------------------------- Are you looking for services other than Condominium contract rescissions and Deposit Recovery? We are the attorneys from GO2Closing.com - A Full Service New York and Florida Real Estate Law Firm MOST POPULAR TERMS CLIENTS HAVE USED TO FIND OUR SERVICES: florida real estate laws,miami florida real estate,title insurance,florida real estate lawyers,florida preconstruction,a real estate attorney,sell real estate contract,real estate contract rescission,real estate attorneys,florida condominiums,commercial real estate lawyer,real estate closing lawyer,rescission of contract,residential real estate attorney,florida condominium lawyer,attorney for real estate,condo real estate,new york real estate attorney,closing attorney,condominium,florida real estate law,real estate closing services,real estate contract,condo presale,best real estate attorney,residential real estate lawyer,new york real estate law firm,luxury south florida condo,preconstruction real estate developer,real estate contracts,miami real estate,south beach real estate,florida real estate attorney,mutual rescission of contract,"condo",real estate contract buyer,real estate attorney,florida real estate disclosure laws,condo florida,real estate,real estate lawyer,3 day contract rescission,rescission of a contract,condo,florida preconstruction contract,commercial real estate attorney,home buying attorney,new york real estate attorneys,developer condo,real estate law firms,real estate contract buyers,real estate closing attorneys,downtown miami condo,real estate closing attorney,real estate condos,real estate fraud,rescission agreement,market condo,real estate laws in florida,real estate closing,realestate attorney,fl real estate laws,contract rescission,a real estate lawyer,florida luxury condominium,realtor attorney,title company,condo attorney,find real estate lawyer,real estate law practice,real estate law firm,contract rescission law,real estate law attorney,rescission contracts,real estate law,real estate contract lawyer,realestate attorneys,fl real estate law,real estate closings,florida condos,realtor lawyer,real estate laws,miami condo conversion,real estate contract law,residential real estate law,florida real estate,real estate lawsuits,contract right of rescission,find a real estate attorney,miami beach condo,new york real estate lawyers,rescission of contracts,rescission of contract form,real estate lawyers,find a real estate lawyer,condo construction,new york real estate lawyer,real estate litigation,real estate lawsuit,contract rescission form,real estate litigation lawyer,real estate legal --------------------------------------------------------------------------------------------
Home buyers suffer when builders flop
Homeowners are faced with lengthy delays, liens and worthless warranties
Wall Street Journal Link for Florida Real Estate Article from MurtleBeachOnline.comThe tumbling housing market is claiming a new class of victim: customers of insolvent home builders.
In the latest sign of trouble, Ft. Lauderdale, Fla.-based Levitt & Sons, a unit of Levitt Corp., filed for Chapter 11 bankruptcy protection Nov. 9, citing the "sudden and steep" downturn in the Florida housing market. Levitt's move follows bankruptcy filings by a number of local and regional builders, including Neumann Homes Inc. in Illinois, Elliott Building Group in Pennsylvania, Turner-Dunn Homes Inc. in Arizona and Kara Homes Inc. in New Jersey. Many other builders simply close up shop.
And the situation is likely to worsen in the first half of next year, says Ivy Zelman, an independent housing analyst. "We're in the first or second inning," Zelman says. "There are going to be a significant number of insolvent builders."
Problems galore
What a builder's troubles mean for its customers can vary, depending on factors such as state law, contract terms and how long it takes to get the project back on track. In some cases, buyers may lose all or part of their deposit or wait a year or more for their house to be completed or the builder's financial troubles to be sorted out.
Homeowners who've already moved into a new development can find themselves living near a half-finished house where work has been halted. They also face other questions, such as who will handle needed repairs, what will happen to a promised swimming pool and whether contractors have put liens on their properties - which could block access to financing. In some cases, local communities have stepped in to fix unfinished roads or pick up overflowing Dumpsters. Florida Real Estate Attorney - Condo contract rescission
Jeff Benes and Maggie Byrne paid $269,000 for a four-bedroom Neumann home in Antioch, Ill., in 2003. Now they are wondering what the company's bankruptcy filing will mean for property values - not to mention who will plow the development's unfinished streets this winter and when the promised clubhouse, pool and volleyball courts will be completed. "We're all up in the air now not knowing what is going to happen," says Byrne.
Builders hit hard
As the housing market has slumped, builders have struggled with rising inventories, falling home prices and cancellation rates that have topped 40 percent in some markets. Land prices have also dropped, leaving builders owing more for some parcels than those properties are now worth. Banks, meanwhile, are tightening their standards - not only for home buyers, but for the builders as well. IndyMac Bancorp Inc., which lends to small and midsize builders, said earlier this month that it expected 30 percent of its home-builder loans to be delinquent by the fourth quarter. The company says that it stopped making new construction loans to builders in August. Can I be forced to close on my real estate contract?
During the early 1990s housing downturn, some 15 percent of home builders went out of business, according to the National Association of Home Builders. The number of bankruptcy filings was very small, says NAHB research director Gopal Ahluwalia. Most troubled builders simply shut their doors or moved into other ventures.
Often, builders' problems are evident long before any public filing. Before Kara Homes filed for Chapter 11 bankruptcy a year ago, construction crews at its Horizons at Birch Hills development in Old Bridge, N.J., began disappearing, and vendors who had worked on the development were replaced by others who seemed less experienced, says homeowners' association president Frank Ramsom. Kara employees also "started to neglect meetings" and provided "cryptic" answers to homeowners' questions, he says.
Perry M. Mandarino, who was brought in to serve as the chief restructuring officer for Kara Homes, advises people buying a new home to "drive past it every few days or every week, not just on a Saturday," to check on construction. "The warning signs are real obvious," he says. "There's a lot of construction, and all of a sudden it stops. There's inclement weather and they are not boarding up the property." Can I cancel my real estate contract on a preconstruction?
CDeposits all gone
For buyers who are under contract, the biggest risk is that they will lose their deposit. Some states, such as California, require that homeowner deposits be held in escrow or that the builder post a bond. But in other cases, the builder may be able to tap the money, which may make it harder to recover.
When Turner-Dunn filed for Chapter 11 protection last year, more than 150 homeowners had outstanding deposits ranging from $2,500 to nearly $28,000, according to bankruptcy filings. Turner-Dunn had disclosed in a public report given to buyers that deposits would be used to fund construction and were not being held in escrow, says Mary Utley, a spokeswoman for the Arizona Department of Real Estate.
It's not yet clear how much of that money will be returned. Dan Collins, an attorney for the bankruptcy trustee, says the outcome will depend on future litigation. Under federal bankruptcy law, homeowner deposits take priority over certain other unsecured claims, but only amounts up to $2,225 are covered.
One home buyer, Brett Angner, put down about $26,000 on a Turner-Dunn home he was purchasing as an investment. He calls his chances of getting his money back "minimal."
Frontier Homes Inc., an Ontario, Calif., builder that bought Turner-Dunn's assets, offered buyers the chance to complete their purchases without an additional deposit. "But it would have been imprudent of us as businessmen to say, 'Here's your money back,'" says Frontier senior vice president Michael Dwight.
Buyers who still want to move into their homes can find themselves living in limbo. One couple waited three years for their $1 million Kara home to be completed. "This woman and her husband had twins," says Mandarino. "They had to live with a relative."
Another issue: Who will handle the inevitable problems that come with new construction? Builders often provide third-party warranties, but Neumann Homes told buyers it would cover defects that appeared in the first year itself. Homeowners are concerned that the company won't honor that warranty, says Dennis Crosby, a trustee for Antioch, Ill.
Residents are grappling with other uncertainties. Each year, Neumann has installed a ice-skating rink in its Antioch development. But some residents aren't sure they want to pick up the roughly $8,000 tab this year - or if they have the authority to stop it, says Crosby, who owns a Neumann home. Village officials say they expect any developer who takes over the project to complete the clubhouse, swimming pool, parks and other promised amenities.
Ken Neumann, the company's chief executive, says that "it's likely that the one-year builder warranty will lapse," but adds that structural and major mechanical defects are covered by a 10-year third-party warranty. Neumann says money has been set aside in escrow to cover the cost of uncompleted amenities. Neumann Homes is working with its lenders to get homes under construction completed, he says.
Perks disappear
For homeowners, promised amenities can sometimes seem like pipe dreams. At Levitt & Son's Seasons at Prince Creek West in Murrells Inlet, a gated community for residents 55 and older, a 25,000-square-foot community center - with tennis courts, indoor and outdoor pools, computer rooms, bocce court, an arts and crafts room and health club - is only partly completed.
"We were told that if it wasn't protected [from the elements] within 30 days, whoever picked up the project might have to knock it down and start all over again," says Charles Brindley, a retired graphic artist, who closed on a $375,000, 2,124-square-foot home in the community in July.
Many builders, including Levitt, have also stopped paying their vendors. Those vendors, in turn, have placed liens on the homes of people living in the communities. Some Levitt homeowners have as many as 20 different liens on their home, according to an executive at one of Levitt's Georgia divisions. Such liens mean that the owner can't refinance, get a home-equity loan or sell the home. Other Levitt home buyers can't close on their properties because the builder hasn't been able to sign a sworn statement that it has paid off all subcontractors and suppliers.
Paul Singerman, lead bankruptcy counsel to Levitt, says that since the filing, the builder "is already trying to ameliorate a number of legitimate concerns." Those include asking the court to allow it to resume home sales, returning deposits posted after Aug. 29 to certain customers and filing claims for the vendor liens so payments can be arranged.
In addition, Singerman adds, under the supervision of the bankruptcy court, Levitt will attempt to move ahead with a plan to either finish substantially completed homes or sell partially completed developments to another developer or investor. Levitt has about 30 developments, none of which is finished, Singerman says.
Outside assistance
In some cases, homeowners and local governments have stepped in to pick up some of the pieces. After Kara Homes filed for bankruptcy, residents of Horizons at Birch Hill hired an attorney to represent them in the bankruptcy case and a maintenance man to fix common problems.
To keep the stalled project from turning into a health and safety hazard, the town of Old Bridge, N.J., pulled out 40-foot Dumpsters that had been left on the property, sent in police for regular patrols and fenced in a hole that had been dug for a swimming pool.
For some homeowners, the good news comes with the arrival of a new developer. Kara Homes' Horizons at Woodlake Greens development in Lakewood, N.J., was bought by Maplewood Home Builders in September.
The new builder says it is now working to fulfill its promise to complete the clubhouse in time for Christmas and have the swimming pool ready by spring.
Since Maplewood took over, "the tempo here has been terrific," says Jim Lithgow, who bought a Kara home two years ago and is president of the homeowners' association. "It's a story of anguish and passion. But now we've turned the corner."
How do potential clients find Deposit Recovery Services?
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Call or E-mail for a free consultation on the options you have in your Condo contract dispute.
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posted by Deposit Recovery Services @ 12:43 PM
