Latest Article on Deposit Recovery Services and Condo Preconstruction Contract rescissions.

We would like to thank the Daily Business Review for recognizing our commitment to helping the public find the help they need in disputes with Real Estate Developers.

Latest News Article on Deposit Recovery Services and condominium contract rescission
Reprinted from the Daily Business Review
South Florida lawyers are increasingly tapping into the cyber world to capture a share of the growing business of helping buyers recover deposits from pre-construction and condo conversion projects.

Web sites such as depositrecoveryservices.com are popping up across the Web. The lawyer-run sites inform buyers of their rights under Florida law and possible remedies, and offer them help. But to be able to offer this service, lawyers said, they have had to relearn specific state and federal laws that were little used in the past.

Attorneys are digging deep but barely finding case law to shed light on possible remedies for their clients, said a Miami Beach real estate attorney.

A Miami Beach Real Estate attorney launched a website last month in response to the poor information on the subject, he said.

“This is so new,” said the Miami Beach real estate attorney, "People don’t know where to go for help. I saw a lot of people asking family members and friends for advice and referrals.”

The last time a similar deposit recovery debacle occurred was in the late 1980s during the savings and loan crisis. This time around, developers learned from contract flaws exposed more than 20 years ago and wrote contracts with built-in protections.

But today’s agreements show a new variation of gray areas when it comes to interpreting the condo laws.

“These are new flaws that haven’t been tried in court,” Aventura real estate attorney said.

One of the most common complaints among frustrated buyers includes long construction delays and uncertainty in condos completion dates. Often, buyers are entitled to recover their deposits if developers fail to close within two years from the date they signed a contract, a Miami Beach real estate attorney explains on his Web site.

People began buying units not yet built nearly five years ago. They put down 10 percent to 20 percent of the asking price to secure one or more condos as the housing market was entering one of the largest booms in South Florida’s history. But construction delays or bad timing caused developers to start closings at the same time the housing market crashed early this year. Some buyers no longer wanted the units.

In January 2003, a buyer put down $64,800 for a $324,000 condo in Downtown Dadeland in Kendall. Construction of the seven-building project suffered several setbacks. The developer, Downtown Dadeland Residential Condominiums, finally began closings in the Purchaser's building a few months ago — two years later than planned.

The Purchaser said he unsuccessfully tried to contact the developer in May to negotiate a credit, such as an extra parking space, to compensate for the time he waited for the unit. He chose not to close.

“I lost an opportunity to invest my money,” he said. “My point was: What are you going to give me for the lost opportunity?”

Last month, he sued Downtown Dadeland, which defaulted in a $224 million construction loan and handed over the project to its lender, Goldman Sachs Mortgage in November. The developer owed Goldman nearly $125 million and had yet to complete three buildings. Purchaser breached the contract by failing to finish the unit in 2005, as stipulated in their agreement.

A Weston attorney is handling a similar case, where his clients want back the $38,350 they gave CABI SMA Tower for a $383,500 condo at the proposed Capital At Brickell South in downtown Miami. The tower initially was to be completed by 2010. But early this year, the developer sent letters to buyers changing the date to 2012.

In the case of the Weston attorney's clients, a court would have to decide whether changing a project’s completion date is a “material change” to the original contract. If so, Florida law gives buyers 15 days after they are informed of any material change to cancel their contracts.

“What is a material alteration? That’s where the gray area is,” said the Weston attorney. He is seeking to develop a class action of similarly situated residents at CABI.

The Aventura Attorney said one of his clients wants out of his contract because the developer was supposed to build a project to include a marina with 48 boat slips. Because of permitting issues, the developer is now building only three boat slips.

“In most of the contracts I review, buyers have grounds to recover their deposits,” said an Aventura real estate attorney.

Deposits could be returned when a developer delivers a smaller unit or changes the design of the building and the amenities agreed in a contract. If buyers didn’t receive all the condo documents required by law when signing the contract, they could cancel the agreement.

Complaints by would be purchasers such as those discussed here, moved Fort Lauderdale lawyer Eric Bronfeld to launch depositrecoveryservices.com three months ago.

His office receives nearly 15 inquiries daily through the site. Some come from as far away as England and Jamaica, he said. Not all the inquiries translate into business, but his three-attorney team is getting busier by the month. About 30 percent of his firm’s time is spent dealing with deposit recovery cases, up from 2 percent a year ago.

“We are not here to kill or destroy deals,” he said. “We want people to close if that is in their best interest. But if it is not, I want people to know what their remedies are.”

Please email or call to speak with a Florida Real Estate Law Firm concentrating on Deposit Recovery and Condominium Pre-Construction Contract Rescissions.

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Please email or call to speak with a Florida Real Estate Law Firm concentrating on Deposit Recovery and Condominium Pre-Construction Contract Rescissions.


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices.com/

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

The original Deposit Recovery Services - Licensed Florida Real Estate Attorneys

Are you looking for a Florida Real Estate Attorney focused on Preconstruction and/or Condominium Deposit Recovery and Contract Rescission Law?

You have found the original - Deposit Recovery Services. The most talked about and written about name in Condominium and Preconstruction Deposit Recovery and Real Estate Contract rescissions. (please be aware that recently, some non-attorney owned companies, using names similar to ours are soliciting business that we believe should be handled by a Florida Attorney). Regardless of whether you decide to work with us or not, Be sure you are working with a Licensed Florida Attorney, focused on Real Estate Law.

If your asking yourself the options you may have prior to the closing date on your Condo contract or feel that you may have been given false information by either a real estate developer, mortgage broker, or Real Estate. We recommend that you retain a licensed Florida Real Estate Lawyer.

The Attorneys at Deposit Recovery Services are experienced Real Estate Attorneys who have handled Deposit Recovery and Contract cancellations with most major Miami, Broward, and Palm Beach county Real Estate Developement Firms.

Call or email for a FREE consultation. We do not require an upfront fee. If we can not help recover some or all of your condo deposit, we don't get paid.
Be wary of non-attorneys collecting payments upfront to "help" you recovery your down payment or preconstruction deposit.

Builder unmoved by flighty buyers
Reprinted from The Palm Beach Post

The buyers' remorse crowd keeps growing.
The latest addition: Pre-construction buyers of the luxurious 2700 North Ocean Boulevard condominium being built on Singer Island. Several buyers are making last-minute attempts to undo their million-dollar purchases just as the condo nears completion and closings are on the horizon.
Since the real estate market tanked, many condo buyers have turned to the courts to undo their pre-construction contracts so they do not have to complete their purchases. Often, these lawsuits hinge on a Florida law that allows a buyer to void a purchase contract if a developer make changes a buyer considers "material and adverse."
But there's a twist with 2700 North Ocean, being built by high-profile developer Dan Catalfumo.
In order to win Riviera Beach's blessing for the 27-story, twin-tower project, Catalfumo had to make 100 of 242 units into hotel suites. When 2700 North Ocean sales first started a couple of years ago, some buyers complained they were not being told they were buying a hotel suite. Attorney Brad Eavenson, for instance, backed out of a reservation when he discovered the hotel disclosure buried in Exhibit F of a 61-page document.
"This guy called me up and told me he clearly told the sales agent he was going to live there full time," said Juno Beach attorney Gary Nagle, who specializes in helping buyers undo purchase contracts. Nagle said his client recently realized he was buying a restricted hotel suite. A restricted suite means an owner cannot make the property a primary residence and apply for a homestead exemption. (Condo and Preconstruction Real Estate Attorney for South Florida)
Now this buyer - and six others - want out of their deals, Nagle said.
Nagle plans to file lawsuits this week seeking the cancellation of the purchase contracts and the return of the 20 percent-down deposits.
Easier said than done. Catalfumo is disinclined to let anyone out of the deal.
"Bring it on," Catalfumo said in an interview last week. "I'll see them at closing. They're not getting out."
Catalfumo said he'll let his Greenberg Traurig attorneys worry about the legal stuff. But he added that all proper disclosures were made to buyers, and no changes were made to the condo that would fall under the Florida law.
It's no surprise these issues are being raised just as 2700 North Ocean approaches its January completion. "If the market was better, you wouldn't have any complaints," Catalfumo said.
Catalfumo would not refer to 2700 North Ocean as a condo-hotel. "It's a resort condominium," he said.(protect individuals from powerful real estate developers)
Whatever. Regardless of how the lawsuits turn out, litigation will delay closings. Since units start at around $1 million (and go up to $7 million) we're talking at least $7 million in limbo. And word is a dozen more buyers want out, too.
Catalfumo said he's focused on finishing construction of the project, now 70 percent sold. "The place is gorgeous," he gushed.(condo and preconstruction lawsuit(s) in South Florida)
Some surprises are planned to goose sales, Catalfumo added. Architectural Digest magazine is decorating a unit, and one New Yorker has expressed interest in buying it, he said.
More details are emerging about the big redo planned for the Palm Beach Mall in West Palm Beach. IKEA, the wildly popular Swedish home-furnishings retailer, is negotiating with owner Simon Property Group to open a store at the mall, though IKEA isn't saying so.
Sources familiar with the redo now say IKEA will take up space in a building nearly 300,000 square feet in size.
But what about Macy's? Early plans for the Palm Beach Mall renovation do not include a place for the department store, which now has a location at the mall.
The MIA Macy's is a mystery, for now. No one would comment at Cincinnati-based Macy's or at Simon.(Miami and Fort Lauderdale Deposit Recovery)
We do have more tidbits on the renovation, however. Four other big-box retailers also will be built at the mall, which is being transformed from a dated enclosed property to an open-air center consisting of several separate buildings, according to sources familiar with the changes. The 40-year-old mall is at Palm Beach Lakes Boulevard and Interstate 95.
Also, look for a bookstore, more than 200,000 square feet of retail shops and more than 50,000 in restaurant space. The mall's three other department stores, Dillard's, Sears and J.C. Penney, will remain, sources say.
Perhaps we'll know more about the fate of Macy's when Simon files formal plans with West Palm Beach during the next few months.
The dismantling of Abe Gosman's fortune is nearly complete.
In September, a U.S. Bankruptcy Court judge ordered a trustee to pay unsecured creditors $22 million from the sale of Gosman's assets, which were sold as part of the former Palm Beach health care magnate's massive bankruptcy case.
The order represents the main payout to unsecured creditors, said Charles Tatelbaum, an attorney representing JP Morgan Chase Bank, the largest unsecured creditor.
As part of the payout, Chase received $10 million owed on a $36 million loan. That's an unusually high recovery for an unsecured creditor, which usually sees less than 7 percent of a debt owed, said Tatelbaum, an attorney with Adorno & Yoss in Fort Lauderdale.
But unsecured creditors were able to tap Gosman's considerable assets when a U.S. bankruptcy judge ruled Gosman fraudulently gave his wife, Lin, an ownership stake in $66.4 million in assets to avoid losing them in bankruptcy. Gosman's possessions, including high-end furnishings and works of art, were sold at auctions. Can I cancel my Condominium Contract? Will I have to sue the developer? What options do I have prior to Closing? Can I renegotiate my condo or preconstruction contract with the real estate developer? My broker told me he/she would help me flip the unit. I would never have to go to closing.
Gosman's fortune once was estimated at $480 million. But after investing in declining health care sectors, the noted philanthropist and often flashy Palm Beach resident filed for Chapter 11 bankruptcy protection in 2001. Gosman cited more than $230 million in liabilities. His case later was converted to a Chapter 7 liquidation. Gosman could not be reached for comment.
Tatelbaum said the Gosman case was among the most complicated matters he's ever handled. "I feel sorry for him because he's lost everything," Tatelbaum said. "But when you live the fast life, that's what happens." Can I be forced to close? Can I be sued by the developer?

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices.com/

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Have you hired a Florida Real Estate Attorney?

As more and more consumers and investors have reconsidered plans to close on a preconstruction condo, we have found some questionable companies popping up on the internet. We are not saying that these services are fraudulent, but we urge you to hire an experienced Florida Real Estate Attorney. One who is experienced in Pre-Construction and Condominium contract law. You may believe that you are "saving" money hiring a company claiming to be experienced in Condo Deposit Recovery, only to find that all they offer are some basic reports available to the public, mailing out form letters to Developers. Whether you call or email Deposit Recovery Services (owned by a licensed Florida Real Estate Attorney) or any other Lawyer in the state, we can not urge you strongly enough to make sure that he or she is familiar with Condominium Contract law and more importantly that they are an attorney. Beware of companies claiming to be "experts" in the law, but are not attorneys. They are not held to the high standard of the Florida Bar Association and may very well disappear after collecting fees upwards of a $1,000. Please call or email for a FREE consultation regarding your Condo contract disputes with Developers in Florida and New York. Most Preconstruction and Condominium Contract disputes are taken on a contingency basis and will not require an upfront fee or retainer.

Condo Conversions tips from the Miami Herald

BEFORE BUYING A CONVERTED CONDO

If you are considering buying an apartment that is being converted into a condo, you should:

• Read thoroughly a state-required engineer's report that outlines the condition of the converted building. Ask questions. You should know the age of the roof, air conditioning and electrical system. This will help you determine the cost of future repairs.

• Understand whether your converted building will get adequate reserves funded by the developer or warranties on major items such as roofs, and how long the warranties are.

• Ask whether the building was constructed under the new tougher codes, which went into effect in 1994. Those buildings have needed fewer repairs. Some buildings built after 1994 were constructed under the old codes, so it's important to ask.

• Don't assume the renovations you see in the condo model or the floor where the model is located will be done in your unit and on your floor. Get any promises from the developer in writing.

• Research the developer's reputation and business history.

• Check with the city to see if the building has any code violations. Also make sure the developers have obtained certificates of occupancy so that you have permission to move in once you have bought the unit.

We look forward to helping you in your Condo Contract dispute.


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Do you need a Florida Real Estate Attorney focused on Preconstruction Condo law?

Are you involved in a Condominium or Pre Construction contract and do not want to go to closing? There are many situations where Florida, New York, and Federal law protect the rights of the individual investors, often giving you the opportunity to have your contract rescinded and in many cases getting back all or some of your deposit.
We recommend contacting a Real Estate Lawyer specializing in Pre-Construction Condominium Contract Law and Deposit Recovery.
Did the Real Estate Developer tell you "You'll never have to close, just flip the unit" or perhaps your Realtor told you that he or she would work with you to flip the condo or preconstruction unit prior to closing. This was a very common occurrence during the Real Estate boom from 2001 - 2005, this was most prevalent in Miami-Dade, Broward, and Palm Beach, Florida. These are just a few examples where you may have recourse and should contact a Florida Real Estate attorney as soon as possible. Land Developers are currently working with lobbyists in Tallahassee to change the laws to better favor developers over individuals in Real Estate contract disputes.
We have attorneys in both Florida and New York who will be happy to offer you a free consultation and often work on a contingency basis to help you recover some or all of your condominium deposit and have your contract rescinded prior to closing.
Do I have to close on my condo? Can I be forced to close? What rights and protections do I have under Florida law to cancel my real estate contract prior to my closing date? My pre-construction is behind schedule, its' been over two years since I signed my contract, do I still have to go to closing?

The Article below is reprinted from the Tampa Bay Business Journal.
Condominium buyers who jumped on board a hot market are now looking for ways to walk away with refunded deposits.

Increasingly, they're pointing to perceived violations of the Interstate Land Sales Full Disclosure Act and resulting property reports. Among the disclosures made through ILSA are guarantees that, barring a natural disaster or eminent domain proceedings, condo communities will be completed within two years of the purchase date.

"Before 2005, no developer really worried about it," said Hank Sorensen, a Port Richey-based real estate attorney with Henry T. Sorensen II PA who is representing a number of buyers trying to leave sales contracts with downtown Tampa condo developers. "Everybody had drafted these contracts before, and no one thought that it would take more than two years to build a condo and have it occupied."

But a "perfect storm" of problems hit condominiums in Florida in 2006 from higher interest rates and the ensuing sudden drop of the real estate market to labor and material shortages following the hurricanes of 2004-05 along with increased concrete exports to China in preparation of the 2008 Olympics.

Please contact Deposit Recovery Services for a free consultation with a Florida Real Estate Attorney specializing in Pre Construction Condominium Law. We have worked with many Real Estate Developers to help our clients recover their deposits left on Florida and New York Condo deals.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Florida Real Estate Developers are fighting back against condo contract rescissions.

Are you currently in a Real Estate contract dispute with a Florida or New York Developer?
Did you know that in many cases your Condominium or Pre Construction Real Estate contract may be rescinded?
Many home buyers and investors are not aware of the legal protections which Florida and Federal Law provide. Please contact a Florida Real Estate Lawyer experienced in condo contract rescissions. Call or e-mail for a free consultation, very often you can not be forced to close on your preconstruction condo contract. We also work with developers to Recover Deposits left on properties.


Reprinted from the South Florida Business Journal
Condominium buyers who jumped on board a hot market are now looking for ways to walk away with refunded deposits.

Increasingly, they're pointing to perceived violations of the Interstate Land Sales Full Disclosure Act and resulting property reports. We have also seen many cases of Real Estate fraud. Fraud and deception amongst developers and Real Estate brokers are being found more and more often, as we entered the late stages of the South Florida Real Estate boom in the Condo and pre-construction markets. Among the disclosures made through ILSA are guarantees that, barring a natural disaster or eminent domain proceedings, condo communities will be completed within two years of the purchase date.

Contact a Florida Real Estate Attorney with experience in real estate contract rescission law.

"Before 2005, no developer really worried about it," said Hank Sorensen, a Port Richey-based real estate attorney with Henry T. Sorensen II PA who is representing a number of buyers trying to leave sales contracts with downtown Tampa condo developers. "Everybody had drafted these contracts before, and no one thought that it would take more than two years to build a condo and have it occupied."

But a "perfect storm" of problems hit condominiums in Florida in 2006 from higher interest rates and the ensuing sudden drop of the real estate market to labor and material shortages following the hurricanes of 2004-05 along with increased concrete exports to China in preparation of the 2008 Olympics.

Hitting back

Tampa's Channelside District seems to be taking a brunt of the condo buyer exodus.

Changing Channelside from a decades-old industrial seaport to a potential home for some 3,000 families had been heralded by city leaders as a way to transform a downtown core that virtually dies when the work day ends. But move-ins have been far more sporadic than anticipated.

Instead of sitting on pre-sales, investors are trying to recover money with claims of material and adverse changes to purchased units from ceiling finishes to square footage anomalies. Some buyers say they have lost as much as 10-by-10-foot rooms from original planning to the final walk-through.

"There is a general attitude that these are just a bunch of investors trying to get out of properties, but I wouldn't be taking these cases if they didn't have legitimate claims," Sorensen said.

Key Developers Group in Tampa has been hard hit with lawsuits so far, according to Hillsborough County court records. The company has been sued nearly 100 times since the beginning of the year for a range of actions including rescission demands and breach of contract for The Place at Channelside, 440 units ranging from 600 to 3,700 square feet according to listings. Fida Sirdar, president of Key Developers, didn't return calls seeking comment.

Condo developers are striking back.

Act now, before changes to state and federal law greatly deminish the chances of rescinding your condominium or pre-construction contract. We can work with you to attempt to recover some or all of your deposit.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Condominium and Pre Construction Deposit Recovery Services

This ad is real

Before closing on your Condo, or visiting the pawn shop, please contact a Florida Real Estate Attorney

Deposit Recovery Services - Florida and New York Real Estate Condo and pre construction attorneys, focused on Deposit Recovery and Real Estate contract rescissions.

In the article below Mr. Tomlinson makes some excellent points. We felt it worth reprinting, this is for informational purposes only and has not been written or reviewed by a Florida or New York Real Estate Lawyer. Please contact our offices for a free consultation regarding your pre-closing real estate contract.

Reprinted from Kevin Tomlinsons blog on The Miami Condominium market.

South Florida developers are increasingly worried that buyers may be trying to cancel their contracts for either legitimate or frivolous reasons. Over the last four years or so, the Miami area has enjoyed a renaissance and real estate boom. During that time, reports claimed that 60,000 to 70,000 condos were planned or under construction. In spite of the recent “bust,” the reality today is that most of these projects have survived and will be delivered in the next 18 months. Many people are realizing, to their horror, that they can’t afford to close or don’t want to.

Under state law, a buyer can cancel a contract if a “material” amendment is made to the condominium documents that “adversely” affects the buyer.

The two most important words in the above sentence are, you guessed it, “material” and “adversely.” What may be “material” or “adverse” to you may not be so to a judge or jury.

The reason why this is Miami’s touchiest subject right now is because developers are concerned that buyers in general don’t want to close (if you are in this position, please contact a Florida / New York Real Estate attorney with experience in Deposit Recovery or real estate contract rescissions)because of the South Florida housing downturn. Since real estate is governed by the law of supply and demand, one can just look up at the Miami skyline and deduce that supply totally exceeds demand and that the majority of the buyers in these towers are speculators. “Oversupply” and the “new South Florida condo market” are the flies in the ointment here that no one counted on changing, and changing so rapidly.

I find that this is really about the speculators who don’t want to keep their units. When these buyers made their initial purchases, they were likely sold a pretty picture on how they wouldn’t have to close, and that the project was going to start a “re-sale” office to help speculators off-load their condos. The developer’s reps projected a enormous gains;basically, a scenario of all of the benefits with none of the risks!

I know a project that had material changes to their docs, which automatically gave buyers the chance to get their money back and rescind the contract. This development basically lost all of its buyers, and now the developer is looking at changing uses to either a rental tower or a hotel.

What should you do if you can’t or don’t want to close on your Miami pre-construction condominium? Here is some advice:

1. Check the last date signed on your contract with the developer. When did it become an executed agreement by all parties? By state law, the developer has to deliver the unit within a specified time from the date you signed the contract. If the developer doesn’t finish the project within the time allowed, and you haven’t signed any extensions or new contracts that “re-up,” (make it a new contract with a new date), you may be able to rescind on that fact alone.

2. Call the developer. Tell him that you can’t possibly close on the unit and ask to be released from the agreement. I did this with one of my clients and since he bought a very desirable unit very early in the game, the developer was more than happy to take the condo back because he could make a few hundred thousand more dollars on it. This is a long shot, but worth a try. This developer was very well funded, met his pre-sale requirements, and the project was a huge success. If you feel that your project hasn’t been that successful, this approach is worth a try.

3. Check for any last minute changes to the condo docs and/or operating budget. Right before closings begin, developers will file any last minute changes to the condo docs. There might be “material” change that is “adverse” to the buyer.
   

Hire a good real estate lawyer. I am shocked beyond belief by how many people purchase these sometimes multi-million-dollar condos and never run the deal by their attorney. I make sure my clients read their contract with the developer and have their lawyer review it before they sign it.
South Beach, Miami, Broward, West Palm Beach , New York Real Estate Contract rescission and Deposit Recovery


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Miami Herald article on Preconstruction Condominium contract dispute lawsuits.

If you are currently involved in a real estate contract and question the contracts validity, please contact Deposit Recovery Services by phone or email for a free consultation.

New York and Florida Real Estate Attorneys focused on Condominium contract law.

A recent article on the growing lawsuits being brought against Florida Real Estate Developers.

REAL ESTATE
Condo-buyer lawsuits mount
Lawsuits filed by would-be condo buyers wanting out of purchase contracts continue to increase as projects near completion.

Latest Miami Herald article on Pre-construction Condo Real Estate contract disputes
Brooklyn housekeeper Rita Dobrer was swept up in South Florida's real estate frenzy, using $600,000 from a jury award as deposits on six condominiums in two Miami projects in 2005.
Dobrer said she never had the intention, let alone the financial ability, to buy the six condos -- which cost about $3 million. Rather, she claimed she was enticed by the developer's verbal guarantees that she could reap $600,000 in profits by selling the units without ever taking ownership.
Dobrer's hopes for a windfall, though, have cratered in the ailing residential real estate market. Unable to flip the units, Dobrer joined 35 other Russian immigrants in New York, New Jersey and Florida who on Friday sued Miami developer The Related Group for the return of the deposits on units in Miami's 50 Biscayne and Bal Harbour's Harbour House.
The allegation the condos were pitched as investment opportunities marks the latest twist in a mushrooming problem: buyers seeking to get out of contracts. Buyers have pounced on changes in units sizes, interior improvements, condo budgets and completion dates as reasons for escaping contracts.
Developers are facing dozens of lawsuits, if not more, from buyers, and the pace appears to be picking up as projects near completion.
''It's starting to snowball,'' said real estate analyst Jack McCabe in Deerfield Beach.
Developers aren't inclined to let buyers out of purchases, though. A Fort Lauderdale lawyer sued 22 town-house buyers in Fort Myers on behalf of a developer seeking to force them to close on their contracts -- even though they were willing to walk away without their deposits.
Related Group is fighting back, as well.
Miami lawyer Susan Mortensen, who is defending Related and other developers in similar suits, said many of the buyers who profited in the housing boom are unwilling to participate in the market's downturn. Florida real estate law, developer lawsuits. Preconstruction and Condo attorney. New York Lawyer. Title Insurance, Closings, Escrow services.
''They are really profiteers. They are not victimized consumers,'' Mortensen said.
Aventura lawyer Robert H. Cooper, who filed two suits against Related on Friday, said developers shouldn't be surprised about the predicament they're in because they created it.
''They were, across the board, signing contracts with purchasers they knew did not have the ability to consummate the transaction,'' Cooper said.
''I'm a housekeeper,'' Dobrer added. ``Who would give me a mortgage for $2 [million] or $3 million?''
If what Dobrer says is true, McCabe said it would illustrate just how speculative the condo-building boom in South Florida became. In essence, it would mean developers relied in part on shell buyers to meet presale requirements and qualify for construction funding.
Dobrer said Related wouldn't allow her to buy four units in her name at Harbour House for that very reason. So Dobrer said she, her two daughters, and sister each bought units with the proceeds from her court winnings from a car accident. Dobrer bought two units in 50 Biscayne.
''The question for the developer would be, how could you accept contracts from a housekeeper who obviously didn't have the income or the wherewithal to close -- unless you were guaranteeing she could flip them for a profit?'' McCabe said.
Mortensen wouldn't say whether Related did any income verification or credit check of potential buyers.
''Purchasers have an independent responsibility to look after their own financial affairs,'' she said.
As for allegations that buyers were told they could flip their units for a profit without purchasing them, Mortensen said they either signed or initialed contracts that acknowledged no such representations were ever made.
Responded Cooper: ``Everyone in real life knows that verbal sales tactics and presentations are what people base their decisions on, not the fine print on the back of the contract.''
Related wooed buyers with buffet dinners at a fancy Russian restaurant in New York, recalled Irina Herman, a real estate agent who has joined the Harbour House suit to get her $127,000 deposit back. She wanted to buy the $635,000 condo as an investment, saying the sales representative told her she could make $100,000.
Efim Mekler, a retired painting contractor in New York, put deposits of $238,000 on two Harbour House units priced at $689,000 and $450,000. He planned to sell the smaller unit.
''You'll sell it like that,'' he said he was told. ''This sale is going to go like hot knishes.'' He said he can afford to close on the units but refuses.
The lawsuits allege Related needed to register its condominiums as investments before pitching units to New York buyers, as required by New York state law.
The purpose of the law is to ensure prospective buyers have detailed information to make a reasoned judgment about whether to buy.
The plaintiffs also assert that Related made ''material'' changes to the contracts that were ''adverse'' to them. For instance, Herman contends her unit in Harbour House is about 100 square feet smaller than the 1,156-square-foot unit she agreed to buy.
Miami Herald staff writer Matthew Haggman contributed to this report.

Deposit Recovery Services - Florida and New York Real Estate Lawyers focused on preconstruction Condominium Contract disputes and rescission's.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices.com/

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Florida Real Estate contract rescission in Condo and Preconstruction

Are you questioning the validity of your Condo or Preconstruction contract in Florida or New York?
Our Real Estate attorneys specialize in Condo and Pre-construction Real Estate Contracts. If you would like to better understand your legal rights regarding your pre-closing condominium contract rescission, please call or email for a free consultation.
Deposit Recovery Services press release for Condo and Preconstruction contract services
_________________________________________________________________
Test Article - not written or reviewed by a Real Estate Attorney
Condo living is definitely a cheaper option to either living with hired help or living in a hotel. Most people however fail to realize the importance of respecting not only their space but the space of others as well as the common areas or places that every tenant has the right to enjoy. Listed are some tips to make condo living a peaceful experience for you and your neighbors.
When taking out the trash make sure you follow the condo guidelines. Is there a segregation scheme where you live? What about garbage bags, do they require certain color codes? All living areas have designated disposal areas. DO NOT under any circumstance leave your garbage outside your door, on the hall, lobby, or in the elevator. Hey anything is possible! Take note of disposal areas or scheduled garbage pick ups. Nobody wants to live or smell like filth.

You break it; you buy it or maybe just replace it. Point is accidents happen, nobody wants it to happen but when they do be considerate and honorable enough to pay for damages you have caused. It’s that simple. Preconstuction condominium law suits grow in New York and Miami, SOuth Florida. Rescind my real estate contract. Aventura, miami, west palm, beach, fort lauderdale, Tampa, New York. Condo Law. Condominum developers in contract disputes.

If you have kids they should be constantly vigilant of their manners. Nobody wants to wake up to some bratty screams or spilling your groceries because some tike ran over you in the hallways. If your kids are inconsiderate brats you’re a terrible parent and also condo living isn’t for you. This also includes newborn infants. Don’t even try to argue that little Bob is such a darling cutie pie because a sleepy neighbor will not listen to much reason.

Nobody says you can’t have a party but please try to keep it down. When you have guests over try to keep things down your loud party music might cause someone’s pacemaker to explode. You don’t want them calling the cops on you for being such an inconsiderate jerk; some people need their sleep unlike you. Noise should be generally avoided. Living in close proximity with others requires consideration in every aspect. Do not do unto others what you don’t want done unto you.

Florida and New York Real Estate Attorney focused on Condominium and Pre-construction contract law. (Land Developer - Condo Development)


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices.com/

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Do I have to Close on my Miami or New York Condo?

Looking for information on Condominium or Preconstruction contract law?
Do you understand your rights and the protection you have under the law in you Real Estate Contract dispute?
Deposit Recovery Services is a division of a Real Estate Law Firm, specializing in condo and preconstruction contract disputes, practicing in both Florida and New York.
Please call or email for a Free consultation.

The following article on "Law" was written by a High Schooll Student in India, it is part of a search engine optimization test being conducted on the "live" blog pages of a Florida and New York Real estate attorney praticing condominium and preconstruction contract law. This is test article #5 in a 10 part test. We will resume normal blog writings for the firm in the next few weeks. If there is urgent news on Real Estate Condo Contract legislation, we will pause our SEO test.
If you have asked yourself," Can I get cancel my Florida or New York condo contract prior to my closing date?", if so please email the attorneys at Deposit Recovery Services for a free, no obligation consultation.
Law is simply defined as a set of rules, guidelines or restrictions a person, community or nation is set to follow. Wikipedia defines law as a set of social rules usually enforced through a set of structured institutions. Which just about brings us back to my original description of what law is. Law was created in order to provide a framework that helps maintain order and justice and a systematized way of living. Law is around us; it affects and governs our daily life in nearly every aspect.

Contract Law can be present in an act as simple as buying a train ticket to trading an item in swap meets. Property law governs the rights, rules and regulations to buying, renting or selling real property. Real estate purchases such as land, structures on land, buildings and materials found below or above its surface, anything affixed to the land is governed by property laws.

Pension funds or inheritances often are governed by Trust laws hence the term trust fund. The availability of compensation when harm or injury befalls someone or someone’s property falls under Tort laws not to be confused with torte cakes. Criminal law prosecutes and punishes perpetrators of the penal codes. Criminal law is what gives birth to superheroes like Batman, Superman, Captain America, The Justice League and the likes, well at least in Stan Lee’s mind that is. Consider the Indian Rupee or Gold.
Working to protect International Investors in the Florida Real Estate Market.

The framework for creating laws that protect human rights, political elections and such create governing structures that fall under Constitutional laws. Constitutional laws are the laws for creating laws. Did that make any sense? Without Constitutional law there will not be any other laws. Florida Real Estate Attorney for condo and preconstruction contracts.Administrative law is to administrative agencies, government agencies whose actions include rule making, enforcement and arbitration. Simply put administrative law is the government and their governing powers. Lastly there’s international law that regulates dealings between independent nations. This deals with everything from military action, trade and trading as well as environmental concerns. International law governs every sovereign nation.
Miami-Dade, Fort Lauderdale, Broward, west palm beach, palm beach county
The Greek philosopher Aristotle wrote that the rule of law is better than the rule of any individual.

Are you closing on a property? Make sure you rights are protected.


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices.com/

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Can I cancel my Condo or Preconstuction Contract?

Are you asking yourself, "How do I get out of this condo contract?", "What are my legal rights regarding this preconstruction deal?", "Do I need a Miami Condominium Contract Attorney". If any of these thoughts has entered your mind recently and you are considering a Real Estate Attorney in New York or Florida, Please call or email for a free consultation. Deposit Recovery Services, specializing in Condo and Preconstruction contract law.
SEO test Press Release on Preconstruction and condominium contract law
Article number four in our SEO test. This Article is written by a High Scool Student in India. The test consists of testing the search engine results for such sought after terms as Florida Real Estate Attorney, Miami Preconstruction, Condo Law, New York Real Estate Lawyer, contract rescission, and Condo contract dispute. Can we "move the needle" using the newly created Deposit Recovery Services website from an established South Florida Law Firm
and move its search results using nothing more for content than basic papers written by high school students with no background in Condo or Preconstruction Real Estate Law Contract Disputes.
A condominium or condo is a form of housing occupancy. Technically a preconstruction condominium is a collection of individual homes along a land which they are affixed on. Colloquially the term condo simply refers to a unit replacing the term “apartment” as the latter seems less posh. Commonly the ownership of a condominium unit is comprised of the air and space within the unit’s boundaries. Some minor interior modifications are allowed as long as it will not affect a common area. Common areas are hallways, rec rooms and other facilities that are jointly “owned” or are enjoyed by any if not all tenants.

Can I get out of this preconstruction contract? Miami Real Estate Contract Law.

The Declaration of Condominium is a document that states the rules and restrictions established by the Board. Such rules typically include pet restrictions, mandatory maintenance or maintenance fees, and other modifications of a condo unit. Condominium units can either be owned or merely leased. Contrary to common belief condos do not merely consist of residential abodes. To date condominiums are now being used as office spaces, retail shops, facilities such as a salon or gym, retirement homes, dormitories or as hotel rooms. These of course are called non residential condominiums.

A lot of people, those who are single or are just starting a family opt to live in condos. This is because of the many benefits of condo living, usually condos come fully furnished and is often reasonably priced. The affordability is its main selling point, its definitely cheaper than building from the ground up in a limited time frame. Usually condominiums are located in accessible areas which work well for folks who work non stop but still find that they need to come home occasionally. Another perk of condo living is the availability of utilities and facilities that would have been unattainable especially for those who are pressed for time. Most condominiums come equipped with their own gyms, salons, swimming pools, clubhouses etc. If not rest assured that they are located near one. Another condo living perk is the 24 hours security service, the doorman or help desk that definitely makes living there safe, comfortable and enjoyable.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Preconstruction and Condominium Law in South Florida and New York

The attorneys at Deposit Recovery Services have asked us to put a note in todays blog post, that the Indian Student SEO article contest is still in effect. As an update, we have gotten permission to do an SEO test on the website of Deposit Recovery Services. A team of Florida and New York Preconstruction and Condo Lawyers focused on real estate contract law. Protecting buyers rights in the arena of Condo Contract Law.

If you have a question regarding your Condo Contract and your legal rights to escape the terms of your contract prior to closing....please email or call for a free consultation.

We will be back to our normal informational writing on condo and preconstruction law in just a few days.

Article #3 on the list of SEO articles for Miami, Broward, and Palm Beach Real Estate Law.
This article is not the opinion and has not been reviewed by a Real Estate Condo Attorney.
Real estate law defines a person’s right to owning and possessing land, structures on land and buildings including whatever materials that can be found above or below the land’s surface. Because there are various laws governing certain areas here is a list of some of the basic real estate laws in South Florida.
A contract that binds both the tenant and the landlord is called a lease regardless of the state you’re in a lease is a lease. The variation occurs in the rental amount, payment dates, and duration of lease, facilities, utilities and other particulars that are applicable in the area. Some minor provisions can be issued by landlords as long as it is legal.
Can I get out or rescind my preconstruction condominium contract
In occasions of periodic tenancy, unless terminated accordingly under Florida Law, the lease must be automatically renewed from period to period. Also with regards to termination of lease the law states certain requirements. Year to year lease deems that a notice must be given 60 days before the said contract end. For a quarter lease, 30 days must be allotted. For the month to moth lease, 15 days is set while a week to week lease requires a notice 7 days prior to the end of the contract.

The Florida real estate law states that a landlord shall hold the security deposit in both an interest bearing account and a non-interest bearing account. At the end of the lease landlords have 15 days to return the security deposit. It is then that the landlord may notify the tenants of any damages he wishes to charge them with. The tenant is given 15 days to accept or reject a landlord’s claim. After which the landlord may freely deduct from the security deposit whatever damage charges he claims. Any further disputes will be dealt with in court. Mitigation of any damages is required from landlords as it is not fair to purposefully pile up said charges.

I would like to get out of my condo contract before closing

It is against South Florida real estate law to discriminate in any sale of appraisal or brokerage because of a handicap, race, sex, national origin, religion or familial status.

Real Estate condo/pre-construction test number 3 for south florida and new york

New information on Washington Mutual Lawsuit. Mortgage Fraud/Appraisal allegations.
New York Attorney General Andrew Cuomo said Thursday that his office sued First American Corp. (FAF) and its eAppraisalIT unit for alleging colluding with Washington Mutual Inc. (WM) to use a list of preferred appraisers to inflate mortgage appraisals.

In a press release, Cuomo said First American allegedly caved to pressure from Washington Mutual to use a list of so-called "proven appraisers" who allegedly provided inflated appraisal values.

"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry," Cuomo said. "First American and eAppraisal IT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike."

Cuomo will discuss the lawsuit in more detail at a press conference Thursday morning.

In the press release, Cuomo said emails showed eAppraisalIT executives knew their behavior was illegal, but intentionally broke the law to secure future business with Washington Mutual.

The lawsuit was filed in New York State Supreme Court. Washington Mutual is not listed as a defendant.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

2nd Indian Student SEO test article for Florida Real Estate Attorney Condo Preconstruction Contract Law

This article is not written by or reviewed by a Florida or New York Real Estate Attorney. It is the second in a test of 10 articles. They have been written by Indian High School students to test the effect on SEO for a Florida Preconstruction Condo Real Estate Attorney in Fort Lauderdale, Florida. New York office in Manhattan, New York. Can I get out of my condo or preconstruction contract? Please call or email our office for a free consultation on Deposit Recovery Services.
TEST SEO PRESS RELEASE FOR DEPOSIT RECOVERY SERVICES
Full Title Closing services available at GO2CLOSING.com

In the United States an attorney at law is a person licensed to practice law by the highest court of state or jurisdiction. Other common terms used are attorney, counselor, counsel and lawyer. For the spurned another applicable term is liar.

Attorney at law vs Attorney in fact (Florida and NY Deposit Recovery Services)

Is there a difference? Generally speaking an attorney is someone who acts in behalf of a person. An attorney in fact is being paid to act for the principal. They are commonly associated with representing another person’s business interest or negotiations. An attorney at law is trained and learned to practice law by representing clients in legal matters and giving legal advice.

The job description of an attorney (Real Estate Lawyer)

An attorney once admitted into practice by the highest court of a state can file legal pleadings; argue cases in court usually in state courts since federal courts require a different admission. Providing legal counsel (real estate contract law)and advice to clients, drafting important legal documents such is the case with deeds, contracts, trusts and wills.

Real estate closings in some states can be performed only by attorneys. Usually document notarization, escrow account settlement funds and disbursement are their common closing attorney roles.

Law practices commonly includes interviewing clients and identifying, solving, analyzing, researching relevant laws, devising legal solution and executing them accordingly are often executed. Performing certain duties such as contract drafting or filing a motion in court are some other tasks attorneys accomplish. Most of their academic training is directed towards legal issues, its identification, its proper factual research and the ability to understand, interpret, comprehend and argue facts both in favor of whatever side in any case. A lawyer’s role is to defend his client what the clients stand point will be the attorneys point as well. Therefore obtaining facts to aid in his client’s case is essential.
Condominium Lawsuit representation for condo lawsuits
Understandably a person who is learned but not licensed by law is not deemed as a lawyer. For him or her to practice as if he is one is unauthorized. Legal practices are only reserved for those who have passed the bar exams hence are lawyers

New York Attorney General Andrew Cuomo said Thursday that his office sued First American Corp. (FAF) and its eAppraisalIT unit for alleging colluding with Washington Mutual Inc. (WM) to use a list of preferred appraisers to inflate mortgage appraisals.

In a press release, Cuomo said First American allegedly caved to pressure from Washington Mutual to use a list of so-called "proven appraisers" who allegedly provided inflated appraisal values.

Protect your rights, do you know your protections condo and preconstruction contract.

"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry," Cuomo said. "First American and eAppraisal IT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike."

Cuomo will discuss the lawsuit in more detail at a press conference Thursday morning.

In the press release, Cuomo said emails showed eAppraisalIT executives knew their behavior was illegal, but intentionally broke the law to secure future business with Washington Mutual.

The lawsuit was filed in New York State Supreme Court. Washington Mutual is not listed as a defendant.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Deposit Recovery Services, test writing on Florida Real Estate, student test

This is not the opinion or writing of a Florida or New York Real Estate Attorney, it is the product of a student in India. We offered a place on our blog as part of a school project.
Please be sure to contact our office for a free consultation regarding Deposit Recovery in matters of Condo and Preconstruction Contract Disputes.

SEO - Student test project for Deposit Recovery Services - NY and Fl. Condominium and Preconstruction real estate contract law.
Real estate laws are rules and regulations governing or acting as a framework such laws vary depending on the area. Some real estate laws only apply in certain states. Here is a short list of the basic real estate laws found in South Florida more specifically in Miami.

Condominium laws in Miami

Aside from the usual rules and regulations tenants follow when living it up in a condominium the condo developers or association have laws to follow as well. Under the laws of Miami and South Florida the association can enter into contracts, be sued or sue in others in turn. The state of Florida rules that mandatory rules and provisions are to be enforced and executed in terms of ownership of condominiums, association has the authority to impose their additional set of operational rules such as the most common one regarding pets, car parking, children, unit maintenance, resale and leases as well as the allowable noise level. Hence when purchasing a condo unit it is imperative that as a would be homeowner it is your duty to read up on such rules and make a decision if you are capable of meeting these minor demands.

Leases and termination (not Deposit Recovery Services - student legal seo writing)

Leases are structured in various ways. The termination of leases follow structured provisions and processes as well. As a landlord or tenant one must be aware of the proper notification allowance days to be given depending on the tenure. An annual tenure requires 60 day notice prior to the end of contract. Quarterly, monthly, weekly leases have certain notice days allotted to them as well. It is integral that you are familiar with these days to avoid being booted out of your home. Kicked out like some dirty sewer rat. You wouldn’t want that now would you?

Abandonment (Press release for New York Real Estate Attorney)

Upon abandonment of a tenant’s home the landlord has full authority and right to repossess the property thus terminating the contract. The tenant is in no means free from any rental debt or damages incurred prior to abandonment. He or she is still very much liable to pay said landlord whatever dues incurred.


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com
http://www.depositrecoveryservices

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
They are not legal advice and have not been written by a Florida or New York Real Estate Attorney.
This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.
Do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us.

Real Estate Developers working to have preconstruction and condo laws changed.

Below are a few recent articles found in Bloomberg and the Sun-Sentinel. I find it interesting to read about the "evil" consumer, hiring a Real Estate Attorney to protect their legal rights under the terms of the Condo or Preconstruction Contract. It sounds like the poor Developers are being taken advantage of by the powerful individual condo purchaser.

These articles seem to be written as part of a campaign to influence the legislation currently pending in both Tallahassee, Florida and Albany, New York. The developers are working hard to have legislation passed that will tilt the real estate laws to favor the developers, rather than continuing to protect individual real estate investors.

With real estate sales cratering, panicked condominium buyers throughout South Florida are hiring lawyers to get them out of contracts signed during the height of the boom.

But a few dozen buyers have been fighting in court to close their condominium purchases, and a recent settlement will give them that chance.

About 90 buyers in the oceanfront Deauville condo-hotel in Miami Beach are plaintiffs in a class-action suit against a company affiliated with Homero Meruelo, president of the hotel and residential developer, Merco Group.

The court fight began in 2005 when Meruelo's company, Deauville Associates, canceled contracts on units, citing sales shortfalls.

Buyers objected, saying the $200,000-and-under prices were a bargain for the heated real estate market. Now the two sides have agreed to let the buyers close their purchases, offering them a chance to turn back the clock on South Florida's wild real estate ride.

Florida and New York Law Firm - Deposit Recovery Services - Pre-Construction and Condominium Lawyers

''We want the unit -- of course we do,'' said Arthur Metz, head of marketing for the Sieger Suarez architectural firm.

SETTLEMENT'S TERMS

Under the settlement terms, all plaintiffs are eligible to purchase Deauville units they put under contract in 2004 and 2005, said plaintiff lawyer Michael Schlesinger. Depending on whether they originally agreed to cancel their contracts, they also can opt to get their money back or split a $75,000 payout from Deauville Associates.

Merco executives did not respond to interview requests.

Metz and two other investors signed a $175,000 contract for a one-bedroom Deauville unit in July 2004, then saw their deposit money returned when the developer called off sales. He thinks it's worth about $500,000 now.

Other plaintiffs aren't quite as bullish on the current real estate market, or at least have had a change of heart about buying into the Deauville. Schlesinger said some of his clients won't close -- thanks in large part to the difference three years have made.

2007 VS. 2004

''It's a different situation than in 2004,'' he said. While many counted on flipping condominiums then, now buyers are much harder to find. ''Maybe they don't have the money to close,'' Schlesinger continued.

The current credit crunch and pullback from generous loan terms also can make closing a Deauville purchase much more complicated than three years ago.

''You don't have the same plethora of financing companies,'' he said.

Metz's partner in the deal, former school teacher Robin Tenzel, said she and her mother expect to pay cash for their share of the unit. Tenzel says she has no doubts about the current real estate climate.

''It's certainly a buyer's market, there's no question,'' she said. ``Would I like to buy a little piece of ocean for the original price I got three years ago? Sure.''

Workers are painting, patching stucco and peeling protective plastic from gleaming panes of balcony glass at a new 1,000-unit condo called The Plaza, two towers that rise 43 and 56 stories over Miami's bank district.

A mile to the north, the exotic stonework at a new 500-unit downtown tower known as 50 Biscayne has been polished and the first residents closed on their contracts this month.

Prices in Miami's condominium market -- a poster child of the real estate boom that swept much of the United States until 2005 -- seem to have held up relatively well to date.

But the opening of a raft of big complexes has analysts predicting the market -- fueled by a frenetic construction spree that saw cranes sprout like mushrooms on the skyline -- is edging toward a cliff.

Values may be poised for a wrenching tumble in the next year as thousands of units in the downtown and Brickell banking districts are readied for residents, analysts say.

As a result, the vultures are circling. Hedge funds and private equity pools are busy scouting locations where they can snap up dozens or hundreds of units at sharp discounts to hold as rentals for up to 10 years, until the market turns.

"Everybody thinks south Florida is on sale," said Peter Zalewski of real estate consultancy Condo Vultures, who is advising private equity buyers. "They're all coming to kick the tires."

Futures traders on the CME Group exchange are predicting Miami will be the worst U.S. regional housing market over the next four years with prices falling nearly 30 percent.

Experts have been predicting a fall for Florida condo prices since the market peaked in late 2005. In Miami, sales figures have been falling for months but prices have been resilient as sellers refuse to budge.

In August, for example, condo sales in Miami-Dade County dropped 44 percent while the median price rose 5 percent to $262,000, according to the Florida Association of Realtors.

But the number of condos on sale has climbed to 25,000, a 36-month supply, compared to six to 12 months in a healthy market.

Market analysts say vulture funds could move on a stone-cold market in the next year.

"We have $200 million to acquire distressed condo conversion projects in Florida," said Matthew Martinez, point-man for a Connecticut-based private equity fund. "We're looking at purchases of $7 million and up, all-cash."

Some analysts believe 2008 will be the turning point, when pre-construction buyers are forced to pony up the full purchase price or walk away from deposits, speculators feel the pain of holding too many properties and developers need to dump excess units at discounts of 30, 40 or even 50 percent.

"In May or so, the true blood is going to flow," Zalewski said. "Many of the hedge funds are looking for a minimum of 100 units in the same building."

Miami's condo-building spree was the biggest in its history -- a history replete with booms, busts, and swampland scams.

At the peak some 60,000 units were under construction, planned or permitted in the city of Miami, whose 400,000 people represent only 16 percent of Miami-Dade County.

Some of those projects have been canceled. But the ones already underway and soon ready for residents are shrouded in uncertainty as buyers look to back away from contracts, unable to get mortgages or fearing they are paying too much.

"We have definitely not seen the bottom yet. In the next six to 12 months we'll see the beginnings of that moment of truth," said Brad Hunter of Metrostudy, a housing research firm.

"It could be 2012 to 2014 before this market needs to build more condos."

Between 2006 and 2009, one analyst said, developers will drop 28,000 new units into the Miami market. The downtown buildings are part of a daring plan to revitalize the city's dingy core, a few years ago a haven only for the homeless.

In just eight prominent buildings in the downtown and banking districts more than 6,600 units are nearly ready.

The Related Group, Florida's largest condo developer, expects The Plaza to be finished next month. The first tower of its 1,700-unit, $1.25 billion bayside Icon complex is scheduled for August of next year with the second following in December.

Another developer's 516-unit, $360-million tower called 900 Biscayne Bay is expected to be ready next spring. Down the street, the twin-tower, 870-unit Everglades on the Bay, is expected to be finished in the fall of 2008.

While conceding the market is tough, Related chief executive Jorge Perez said he is willing to join the hedge funds and private equity pools and has upward of $100 million to snap up unwanted units to hold as rentals.

"There isn't a city where I can see the type of growth Miami is going to experience," Perez said. "Given that, do we have a blip, whether it's two years or four years, where we're going to have it rough? No question about it."

A smaller Miami-area condo glut in the 1980s took six years to correct, analysts say. This one could be worse.

"I think we've only seen the tip of the iceberg in terms of the pain the market will see," Martinez said.

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Condominium Deposit and Contract Lawsuits in South Florida

When Jennifer Wigand put down a deposit in 2005 for a condominium in a multi-use development called Veranda at Plantation, she hoped to quickly sell it and use the profits to help pay her law school loans.

Then the housing market plunged. Wigand said she wasn't worried because the developer had promised she could back out any time and her money would be returned. But in July, when she asked to take part in that program, Wigand said she was told it had been canceled.
Like an increasing number of buyers in South Florida, Wigand last month filed a lawsuit to get out of the deal. Last week, 20 other buyers in Veranda joined her suit.

Recent Real Estate Attorney Press Release - Condominium and PreConstruction Contact Law

Ken Simigran, president of builder WestCity Partners, Inc., declined to comment on the buyback program, but insisted, "Our contract is very clear. We have delivered on everything we were supposed to perform on."

Brad Hunter, director of the South Florida region for Metrostudy, a housing market research firm, said more lawsuits are being filed because "there is a lot of buyer's remorse out there. Naturally people will be looking for ways to get out."
Press Release for Condominium and preconstruction law - New York and Florida
About 40 percent to 60 percent of buyers are trying to wiggle out of their contracts, said Gary Poliakoff, a Fort Lauderdale attorney, referring to a dozen projects in South Florida that his firm represents, including Veranda.

"The claims and the suits are namely a means for an end for investor-buyers to get out of deals where they weren't able to realize the profits they expected, but it doesn't mean the reasons are legitimate," Poliakoff said.

Developers are not budging, Poliakoff said, because they "built the buildings on the reliance that the buyers are ready, willing and able to close."

John Mike, chairman of the Realtors Association of the Palm Beaches, said those most upset are buyers who had no intention of living in their properties.

"A lot of those condos, unfortunately, were bought by speculators with the same business plans — to flip their properties, and unfortunately that has created a glut of units. Now were are seeing a large number or people trying to get their money back by hiring lawyers."

Veranda, a $100 million development on 12 acres at Pine Island Road and American Expressway, is a cornerstone in the rejuvenation of Plantation's midtown. It was to be built in two phases.

PRESS RELEASE FOR REAL ESTATE and CONDO LAW

Phase One includes a 45,000-square-foot shopping center anchored by a Publix, and 200 newly completed condos. Plans for Phase Two — about 175 condos — are on hold because of "market conditions," said Simigran.

Ori Onn, a real estate agent, signed a contract in 2005 to buy a one-bedroom Phase One condo for $295,000. He put down $59,000 and like Wigand, he planned to flip it.

"They told me they would put it on a resale program if I didn't go through with the deal," Onn said, adding he tried but was unable to reach Veranda representatives four times in the last few months to take them up on the offer.

"I just want my money back," said Onn, of Aventura, who is part of Wigand's lawsuit.

The suit, filed in Broward Circuit Court against Fort Lauderdale-based WestCity, and two other defendants, seeks redress for what it describes as fraud in the inducement, negligent misrepresentation and breach of contract, among other issues. It asks that the contracts be rescinded and security deposits refunded.

The Veranda buyers also filed a complaint in federal court seeking an injunction to prevent the condos from closing. It alleges WestCity failed to comply with a federal law requiring developers to register their developments with the U.S. Department of Housing and Urban Development, among other issues.

Wigand's two-bedroom, $392,000 condo is scheduled to close on Oct. 30. She said she will forfeit her deposit if the court does not grant her relief.

Onn said he doesn't know when his condo is scheduled to close, nor has he decided how to respond when it does.

Given the protracted pace of taking cases to trial, most lawsuits filed in South Florida since the real estate market downturn are still making their way through the courts.

Those buyers "won't get their deposits back until a decision is made by the courts," said Joan Tersigni, president of the South Broward Board of Realtors.

And "if everyone walks away [from their deposits] and [the builder] can't resell them, the developer will file for bankruptcy and perhaps someone else will come along and buy it," she said.
Please be sure to contact a Florida Real Estate Attorney specializing in Miami Condominium or Preconstruction Law.

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Florida Real Estate Attorney specializing in Condo and Preconstruction contracts

Are you searching the internet, researching, "Miami Condo Contract " or "Florida real estate law condominium deposit returned"??
If so we encourage you to call our offices for a free consultation. Our Florida Condo and Precontruction Attorneys are here to help, you may have options before your closing date.

Below we have listed a few of the most common search terms that our clients have used to find us. Hopefully this has made your search for help easier. If your "search term" is listed below or is similar, you have found the Miami-Dade / Broward, Florida Law Firm that may be able to help. Many Real Estate contracts give the purchaser options which you may not be aware of. Are you stuck in a bad preconstruction deal? A condo contract which has left you with an uneasy feeling? Read on.

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Latest news in condo and pre-construction deposit recovery lawsuits.

Two investors looking to get out of their condominium contract have filed a federal class-action lawsuit against Bonita Springs-based homebuilder WCI Communities Inc.

David Berry and John Schrenkel have sued the company, saying it violated the Federal Interstate Land Sales Act in a contract they signed in 2005 for the purchase of a unit at the 21-story Florencia at The Colony in Fort Myers.

They say WCI failed to include a provision in the contract that gives buyers a 20-day notice of default and an opportunity to “cure” it, or make it right.

The lawsuit also alleges that WCI failed to provide a recordable legal description. Both exclusions would allow the purchasers to get out of the contract, and get their deposits back, their attorney Robert Cooper said.

WCI thinks otherwise. The company has filed a motion to dismiss the lawsuit and its attorney expects the case to be thrown out.

Plaintiffs filed an amended complaint with new claims Monday, which will force the judge to deny WCI’s motion to dismiss, said Cooper, who is based in Aventura on the east coast.

“We don’t know how many people will end up being in the class,” he said.

For now, there are just two. Berry and Schrenkel put down a $115,000 deposit, but never closed on the unit. WCI kept the money.

“They want to try to get their deposit back. That’s what it is all about,” said Thomas Roehn, a Tampa-based attorney representing WCI.

In the contract, Roehn said, WCI did include the 20-day default provision in the contract, but mistakenly said the seller — not the buyer — would get the notice. Before the lawsuit was filed, WCI made it clear that it would honor the 20-day notice requirement for the buyers, he said. At that time the buyers were not in default.

He said they forfeited their deposit by failing to close.

“They didn’t come to the closing. They just didn’t bother showing up,” Roehn said.

He said the case has no merit because the buyers waited too long to file the lawsuit. They have exceeded the two-year statute of limitations, he said.

However, Cooper said that’s not true. He said the buyers asked to cancel the contract before the two years were up, and they have an extra year after that to file a lawsuit.

This type of lawsuit has become more common as buyers look for ways to get out of contracts in a slow market.

Cooper said he’s representing 150 purchasers on properties throughout Florida who have changed their minds for various reasons.

In another lawsuit filed Aug. 29 against WCI in Collier County Circuit Court, Timothy Glock, a Michigan resident, seeks to get out of contract for a different reason.

In the suit, Glock said he agreed to purchase a unit at Lesina at Hammock Bay in Naples on April 30, 2005, for $1.17 million. At the time he signed the contract, he was told his unit would have 3,760 feet. After he signed the contract, he was informed it had 3,498 square feet, the lawsuit says.

WCI made a change to the layout, excluding a window that would have given him a view of north Marco Island, which was an incentive for him to purchase, he said.

Because of the change, Glock notified WCI that he wanted to cancel his contract on March 22. But WCI would not allow him out of the contract, he said. The company has filed a motion to dismiss his complaint.

WCI struggled financially amid sluggish sales. In its most recent quarter, the company reported a $33 million loss.

The company builds traditional homes and condominiums in Florida, New York, New Jersey, Connecticut, Maryland and Virginia, primarily for retirees and second-home buyers.

We look forward to serving your needs and protecting your legal rights.

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Miami, Florida condo and preconstruction contract attorney

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Florida Condo contract suits grow in Florida and around the country

Condo and Preconstruction contract law. Florida Real Estate Attorney. A growing number of 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 purchase contracts.

While no one knows exactly how many such "buyer's remorse" suits have been filed, they are widespread and on the rise statewide.

"It's all over the place," said William P. Sklar, a West Palm Beach real estate attorney who has been following the trend. "I would say there are probably dozens, maybe hundreds, of these suits pending in Florida. The market has changed and more buyers have remorse and they want out."

Sklar said he's aware of numerous cases in Palm Beach, Broward and Miami-Dade counties but the trend extends far beyond the glutted South Florida condo market:

• In Manatee, buyers have filed more than two dozen suits against three separate developers, court records show.

• Buyers at two condo projects, one in Charlotte County and the other in Sarasota County, have filed at least five suits, said an attorney involved in those cases.

• Almost three dozen buyers in one condo in Tampa's Channelside district are suing the developer, the St. Petersburg Times recently reported.

Buyers also are increasingly complaining to state regulators. 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.

Not just in Florida

The growing number of suits isn't limited to Florida, either. Buyers in Las Vegas, San Diego and other former condo hot spots also are increasingly accusing developers in court of everything from breach of contract to fraud, according to news reports.

"It has really spiked nationally," said Robert Chasnow, a partner with the law firm Holland & Knight in Washington D.C., who frequently lectures and writes about a federal law governing land sales. "I would say the number of buyers seeking to get out of contracts is concentrated in just a few states, Florida being one of them."

The unique nature of Florida's condo boom and bust are behind the rise in legal actions, observers said.

At the boom's 2004-05 height, investors eagerly snapped up condos at pre-construction prices with visions of quickly flipping the units for fat profits. Developers fed the buying frenzy with plans to build a glut of new condos, including as many as 3,000 in Manatee.

But hurricane-related material and labor shortages delayed construction or canceled projects outright. By early 2006, as the first condos neared completion, the once-sizzling market was fizzling. Prices dropped as more units came online in an overbuilt market. The resale market evaporated.

Getting out of contracts

Many investors, on the hook for units they couldn't afford or sell, began seeking ways to get out of their contracts.

"I've had people ask me if chipped paint is enough," said Ryan Snyder, a Bradenton real estate attorney who's not involved in any of the Manatee lawsuits. "They're looking at anything."

Some buyers opted to sue, 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.

Attorneys involved in the cases and other legal observers said buyers appear more willing to risk the uncertainties of court than walking away because they had to put up larger deposits - many in the mid- to high six figures - and prices are falling.

"The reason it was not litigated much previously was because no one wanted out of their contract," said Sheryl Edwards, a Sarasota land-use attorney who is representing several discontented condo buyers in Manatee, Sarasota and Charlotte counties. "They still wanted to buy. Now, it's different."

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Trump Tower Tampa sued in most recent deposit recovery lawsuit

Florida Condo and Preconstruction Law. Contract Cancellation and Deposit Recovery.
Another lawsuit has been filed against the developers and others involved in the troubled Trump Tower Tampa project by buyers seeking their deposit money back.

Jugal and Manju Taneja of Largo claim in their suit that they were misled to think that real estate mogul Donald Trump was a partner in the condo tower project. They later learned that he only licensed his name to local developer SimDag LLC, the suit states.

"Mr. Trump has a reputation, and my clients were relying on his expertise," said the Tanejas' attorney, Dean Papas of Gray Robinson in Tampa. "The truth is all he did was take money out of it."

South Florida Condominium, preconstruction, Real Estate Attorney

The suit, filed Monday in Hillsborough County Circuit Court, names Trump, SimDag and each of the original individual development partners.

Trump and Kathy Rentas, a SimDag attorney, could not be reached for comment Tuesday.

In the suit, the Tanejas claim the defendants signed a confidentiality agreement "to keep the true relationship between Defendant Trump and the remaining defendants a secret." By doing that, the sellers and Trump violated Florida's Deceptive and Unfair Trade Practices Act, the suit contends.

In conversations with the Tanejas and in marketing materials, the suit claims, the defendants stated that Trump was a "partner" in the project.

One brochure, for example, featured a statement signed by Trump that said, "I am very proud to partner with SimDag/RoBel in presenting the Trump Tower Tampa," the suit says. Another promotional sheet, titled "The Partners," featured photos of Patrick Sheppard, Howard Howell, Jody Simon, Robert Lyons, Frank Dagostino and Trump.

The Tanejas' suit comes on the heels of a judgment issued last month by Hillsborough Circuit Judge Frank Gomez. He ruled that SimDag must pay $587,916 to ADAJA Properties LLC, a Tampa company that purchased two condos. SimDag failed responded to the suit.

Rentas, of the law firm Becker & Poliakoff, told The Tampa Tribune at the time that the response wasn't filed because she didn't know about the suit. She said she planned to ask the judge to set aside the default and vacate the judgment.

Two other buyers have filed suits against the project, seeking deposits back. Those suits are pending.

The $300 million Trump Tower was announced in early 2005 as a luxury 52-story high-rise on the Hillsborough River downtown. The project never went vertical. The developer struggled to obtain construction financing and ran into trouble with unstable soil beneath the site and rising construction costs.

In May, Trump sued seeking to terminate his licensing agreement with SimDag. That's when Papas said they discovered the licensing agreement.

The Tanejas put down a 20 percent deposit, or $528,000 on a $2.64 million unit. Half was put in escrow and the rest was available to the developer to use for construction costs. Papas said SimDag has agreed to return the escrow portion of the money, as the original contract mandates, to anyone wanting to drop out of the purchase agreement.

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SimDag LLC recently told buyers that it has received a "commitment agreement" for a loan from a New York hedge fund and still wants to build the tower. The company has not said since whether the deal has been signed.

Meanwhile, Don Wallace, a Pinellas County resident who says his wife and two partners also put a deposit on a condo, is trying to organize a meeting this month for buyers to discuss options.

"Yeah, we can get our escrow money back, but that's still a big hit to take," Wallace said, referring to contract provisions that allow the developer to keep half the deposit if a buyer drops out of a contract.

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Condo buyers remorse or exercising your legal rights in a Condo contract dispute?

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Jo Lynne Navarro wants her $270,000 back.

That's how much the Sarasota County woman paid to reserve two Bel Mare at Riviera Dunes condominium units two-and-a-half years ago. The units existed only in glossy sales brochures at the time, but Navarro - like many others lured by a sizzling condo market - was eager to buy early.

Now, units 206 and 801 in Bel Mare's second 12-story building in Palmetto are complete but empty - as are numerous others - making the brand-new building resemble a ghost tower. Navarro doesn't want the units anymore and is suing the developer because it won't let her out of her purchase contracts for $1.35 million, or return her deposits.

She has a lot of company.

Court records show discontented buyers have filed more than two dozen lawsuits against the developers of Bel Mare and two other local condo projects: The Palms at Riviera Dunes in Palmetto and The Promenade at Riverwalk in Bradenton.

Although filed in Manatee County Circuit Court by different attorneys, the suits echo each other in accusing developers of breaking purchase contracts by failing to complete the units within two years as promised.

Developers counter in court that the deals are valid because hurricanes and other forces beyond their control caused unavoidable and allowable construction delays. They also say many of those suing are reneging because their plans of flipping the units for fat profits have sunk along with condo prices.

Real estate and legal observers say the rise of "buyer's remorse" lawsuits is just the latest legal fallout from an unprecedented housing slide, which has caused this spike in foreclosures and lawsuits accusing lenders, real estate professionals and others of misrepresentation and fraud.

"This might just be the tip of the iceberg," said William P. Sklar, a West Palm Beach real estate attorney following the trend.

Lawsuits piling up

In all, various buyers have filed nine lawsuits since late 2006 against Bel Mare's developer Riviera Dunes Development Partners LLC; a dozen against The Promenade at Riverwalk LLC, developer of the condo complex of the same name in Bradenton; and four against Waterford Palms at Riviera Dunes LLC, developer of The Palms at Riviera Dunes project.

Navarro's suit, filed in July, is typical.

The lawsuit states she signed contracts Jan. 30, 2005, to buy the two Bel Mare units for a combined $1.35 million. To lock in preconstruction prices, she put down a $135,400 deposit that day and a second $135,400 deposit seven months later.

Each contract contained a clause in which the developer said it would complete the unit and have it ready for occupancy within two years ". . . subject, however, to extensions by acts of God, strikes or other causes beyond seller's control which would justify extensions under Florida law."

Neither unit was done by the Jan. 30, 2007, deadline. Three months later, Navarro told the developer she was canceling the deals because of the missed deadline and asked for her money back, the suit states.

The developer refused to release her from the contract or return the deposits, so Navarro sued for breach of contract. The developer countersued, saying Navarro broke the deals when she tried to cancel them.

Navarro and Riviera Dunes Development officials did not return telephone calls seeking comment.

The case is pending, as are nearly all the others that mirror it. One suit, against Bel Mare's developer, was dropped as part of a settlement. A judge has referred another case, this one against Waterford Palms, to binding arbitration.

Two-year clause at issue

The buyers' lawsuits focus on the two-year clause, which condo developers routinely include in sales contracts to bypass the federal Interstate Land Sales Full Disclosure Act.

The law, passed in 1968 as a consumer-protection measure, says developers who use interstate commerce - such as the mail or media advertisements - must provide a comprehensive disclosure report to buyers before they sign purchase contracts.

But it also allows developers to self-exempt their projects by making the two-year promise, which many do because it can take several months and hundreds of thousands of dollars to register under the law.

"You're in a hot real estate market. You want to get going and you don't want to be bogged down by the time and expense of these disclosures," said Sheryl Edwards, a Sarasota attorney who represents four buyers who have sued The Promenade's developer.

Developers acknowledge that, but say they don't make the two-year promise lightly. They also dispute buyer arguments that it's a hard and fast deadline.

"Normally, two years is adequate," said Mike Miller, Waterford Palms' president. "It's not meant to be a magic number. The purpose of that clause is to obligate specific performance, an assurance that the unit will be built."

Yet developers often try to give themselves some wiggle room by including factors beyond their control as allowable reasons to extend the deadline. They say that includes permitting delays, material and labor shortages and supply disruptions.

The Palms didn't get all its permits until a year after the first purchase contracts were signed, Miller said, or twice as long as anticipated. The post-Katrina rebuilding effort also caused a window shortage, prompting the developer to cancel another project's order so the window manufacturer could focus on The Palms.

"Even then, we still had to wait three months before they could get to us," Miller said. "We were sort of caught between a rock and a hard place. If the market hadn't dropped, everybody would be closing."

Shortages of PVC pipe, roof shingles and copper also slowed construction of The Promenade's first building, said Ed Vogler, a local attorney and partner in the project. Also disruptive were numerous construction shutdowns required by the state when tropical weather threatened Florida in 2004 and 2005.

So, Vogler said, he's "disturbed and unsettled" by the lawsuits - but not surprised.

"It appears to be a common thing across Florida, that people who expected to make an investment are now disappointed in the marketplace and are trying to use it as an opportunity to not fulfill the contract," Vogler said. "People should honor their commitments."

Are promises meaningless?

Buyers counter that the developers should practice what they preach.

They contend the courts shouldn't let developers get out of their two-year promise so easily. If developers have an escape hatch, the two-year promise is essentially meaningless and makes the contracts subject to the federal law, buyers say.

And if that's the case, the contracts are invalid because developers improperly used the two-year exemption, the buyers' attorneys argue.

Buyers also argue that contract provisions should allow them to cancel the deals, recover their deposits and sue for damages because of the missed deadlines.

"Because the developers chose the two-year exemption, this legal option is available to the buyers," Edwards said.

So far, only one local judge has ruled on the issue, and it was in favor of developers.

In May, Circuit Judge Peter Dubensky rejected Terry and Cindy Holinsky's motion for a judgment against Riviera Dunes Development Partners. He said hurricane-caused construction delays were acceptable under Florida law and that the federal act does not require the two-year promise to be an absolute guarantee.

But Dubensky's order does not apply to the other cases.

Although the cases generally are similar in nature, buyers' attorneys plan to pursue them individually rather than consolidating them, because each case is different.

Some deals are closing

Not all buyers have gotten cold feet or gone to court.

Miller said about half of the 46 units under contract at The Palms have closed, although deeds - the legal record of a property sale - have been recorded for only nine of them, including two eighth-floor units for which a Gulfport couple paid nearly $2 million. Only two units are occupied now.

Another dozen or so units are expected to close soon. The remainder, which include those now under litigation, likely won't close, Miller said.

"We're trying to focus now on those who want to close," he said. "A couple of others we've already let out of their contracts. We're trying to be as compromising as we can with those who are willing to compromise."

Vogler would say only that "sales are going very well" at River Dance, the first of The Promenade's three planned buildings. Yet deeds have been filed on only 17 of its 115 units, public records show.

Of the 62 units in Bel Mare's second building, just 19 have had deeds filed, records show.

But those being litigated will remain in limbo until those cases are resolved or the buyers decide to close.

Buyers and developers alike have no idea how this will end.

"We haven't had the kind of market we've had, where buyers get cold feet and don't want to buy," Miller said. "I've never seen anything like it in my 25 years in the business."

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Condo-buyers' suits in Florida continue to rise

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.

If you have a real estate dispute or a construction litigation matter, please contact us via Email detailing your dispute: info@depositrecoveryservices.com or for a free confidential consultation and case evaluation call an attorney from http://www.depositrecoveryservices.com/ 954-527-1512(South Florida Area) or 1-877-527-1512 (Toll Free outside South Florida)


Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@depositrecoveryservices.com

Miami Condo and preconstruction lawsuits continue to grow against developers

With momentum building in the courts, your opportunity to break your condo contract is improving. But keep in mind, developers are lobbying hard in Tallahassee to have the laws changed. This will make it incredibly difficult to recover your deposit money and you may be forced to close. Please call us today for a free consultation.

With formerly strong condominium markets across the country in sharp decline, angry buyers are taking developers to court, alleging everything from breach of contract to Florida mortgage fraud.

Some of the lawsuits claim the amenities featured in glossy marketing brochures and model apartments never made it into the final product. Others involve much-hyped projects that went bust, leaving hundreds of buyers with contracts for condos that will never materialize.

In the Florida housing market, for example, 2,557 individual complaints against developers were filed in fiscal year 2006, which ended June 30, up from 1,825 two years ago, according to the state’s Department of Business and Professional Regulation.

Legal professionals say the increase in litigation isn’t surprising, given the furious pace of construction in the past few years, and that some suits may rely on dubious legal strategies.

Still, industry analysts say, the increase in litigation is shedding light on the problems facing many people who got caught up in the rush to buy during the recent run-up, particularly in the condo market. Real-estate professionals attribute this latest wave of legal actions to the recent surge in preconstruction purchases.

HIGH-END HASSLES

Another new wrinkle is the number of high-end buildings involved in court actions - a rarity in the past, industry analysts say.

”You’ve got buyers out there who paid one and two million dollars or more for a [Florida condominium] and are now dealing with everyday construction defects,” says a California attorney who specializes in construction litigation.

The rise in litigation comes as the market for condos is slumping. Nationwide, sales of existing condos and cooperatives fell 16 percent in September compared with the same period a year earlier, according to the National Association of Realtors.

Sales of existing condominiums in the Miami housing market fell 45 percent in September compared with the same 2005 period, the Florida Association of Realtors says.

”Right now, the condo market is a disaster,” says a Miami economist and real-estate analyst. The crash in some areas was inevitable, he adds. “These markets were essentially propped up by speculators.”

Investors accounted for as much as 80 percent of the preconstruction purchases of luxury condos in Miami, according to a 2004 study by Esslinger-Wooten-Maxwell Realtors.

Dried-up demand and rising construction costs have forced many developers and home builders to stall or cancel projects. And as the number of scrapped projects increases, so too do the complaints. In Florida, many condo suits involve delayed, canceled or recently completed projects in the southern part of the state.

A Miami attorney says she was surprised when she got a letter in February advising her that the development where she had agreed to purchase a two-bedroom apartment in 2004 for $579,980 had been canceled. The developers of the proposed 49-story tower near Miami’s Brickell Avenue had only seven months earlier hosted a cocktail party to celebrate the condominium’s groundbreaking.

”They never hinted that something was wrong,” said the Miami attorney and a first-time home buyer. ”When I read the letter, it felt like I got punched in the stomach.”

The Miami attorney says the two-story unit she agreed to purchase on the 42nd floor was to have stainless-steel kitchen appliances, a marble bathtub and views of Biscayne Bay.

So she joined 58 fellow buyers who filed a lawsuit in April against the developer, South Bayshore Tower, in Miami-Dade Circuit Court, claiming breach of contract. The lawsuit seeks the gain they would have realized if the condos had been built plus the unconditional return of deposits with interest.

DEVELOPER’S STANCE

An attorney representing the developer, says it denies all of the claims cited in the lawsuit and says hurricane-related delays and rising construction costs led to the cancellation of the project, called 1390 Brickell Bay.

Some experts say the Florida mortgage loan cases may be tough to prove.

Indeed, two of the three original claims in the lawsuit have been dismissed or withdrawn. Moreover, as required in the purchasing agreement in the event that the project was canceled, the company has already returned buyers’ deposits, in most cases 20 percent of the purchase price, with interest, according to devloper's attorney. The plaintiffs may also find it difficult proving future financial losses, because the condo wasn’t built.

”The court looks for hard-and-fast evidence that you were harmed,” says the chair of the real-estate department at the Wharton School of the University of Pennsylvania. “Lost profits are always hard to prove because they are speculative.”

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
mailto:info@depositrecoveryservices.com.
http://www.depositrecoveryservices.com/
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Florida Condo and Preconstruction Laws set to change. Act now for Deposit Recovery

Two bills floating around Tallahassee could make it more difficult for condominium investors to back out of contracts with developers, a process builders say has been a big contributor to increased construction costs.
Legislators are working to put together compromise language from Senate Bill 396 and House Bill 7031, which initially focused on lower insurance rates for condominium complexes and expanded to deal with the increasing number of contracts terminated by buyers.
But it’s not all about protecting developers, said State Rep. Kevin Ambler, R-Lutz, who is sponsoring the House bill.
“We’re being pretty tough on them,” Ambler said of the developers. “We want to make sure they are not using the changes to the insurance law [made last January] as a means for them to escape their responsibilities to finish out their obligation.”
More protection from storms
The bills, in their current form, could help lower insurance rates for condominium communities by allowing homeowner associations to pool with other associations across the state to spread out risk, instead of simply taking into account the one area in which a complex is located. The legislation also requires complex owners to provide Florida mortgage holders with reports that include improvements not yet completed.
----continued below-------------
Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@go2closing.com
http://www.go2closing.com

With that, developers won’t be able to make agreements with buyers based on planned improvements, but at the same time, buyers won’t be able to take guarantees made by developers and use them later as loopholes out of sales agreements.
“If the developer makes a good faith estimate on his budget, and there are changes in that amount resulting from insurance costs or other costs, then that wouldn’t constitute a material and adverse change any longer,” said Robert S. Freedman, a shareholder with Carlton Fields in Tampa. “That’s what buyers have been using to get out of their contracts. By having this, it will help the business community, it will help [Florida mortgage lenders], and it will help with construction costs.”
No hard numbers are available, but the change in the Florida real estate market has left many investors holding the bag with condo units they were hoping to flip.
Many developers tried to limit investor purchases of units, but that hasn’t stopped them from being a large part of the market, said Joseph Narkiewicz, executive VP of the Tampa Bay Builders Association.
“Builders have tried to limit the number of units that are sold to investors because a high number of investor-purchased units can wreak havoc on their sales programs,” Narkiewicz said. “They tried to prevent investors from flipping units and competing with homebuyers for those same units, which ended up driving up the cost of housing. If there are mechanisms that can help alleviate that problem, that could be helpful.”
Keeping everyone accountable
A compromise bill could be on the governor’s desk before the end of May in time for hurricane season, Ambler said. While the bills could protect developers overall, the main issue remains an insurance one, the legislator said.
“Developers are making the argument, ‘Yes, we made all these representations and guarantees, and we sold you your home and your unit,’” Ambler said. “‘We didn’t foresee a total destruction of your home from a hurricane, so you can’t hold us accountable.’ Hurricanes were a very real risk when you made that prospectus, but that unforeseen increase from a storm does not count as a material change to the offering circular.”
The bill is all about keeping Florida home mortgage loan contracts, said Ken Stoltenberg, director for Mercury Advisors, which is building two condominium projects in Tampa’s Channelside District.
“It’s just to a point that if a contract isn’t a contract, then people tend not to build things,” he said.
“This is a significant change for Florida’s condominium development because, up until this point, there really was no check and balance for what a purchaser should reasonably expect when he signed his contract,” said Carlton Fields’ Freedman. “This will help to ensure that the developer acts in a good-faith manner.
The time to act is NOW, Please contact us for a free consultation.

Wealthy condo buyers eager to get out of pre-construction contracts
Judge: Pre-construction contracts binding if you can pay
Wealthy condo buyers eager to get out of pre-construction contracts signed during the recent real estate frenzy, were dealt a blow this month by a Palm Beach County judge.
BY ALEXANDRA CLOUGH - Palm Beach Post
ot apply the new law to the D&T case because the purchase contract was signed before the laTrying to back out of a pre-construction purchase on a condo? If you're rich, forget it. If you have money troubles, it might be easier.
That's the finding of a Palm Beach County judge. Earlier this month Judge Jonathan Gerber ruled that D&T Properties could not back out of a contract to buy a $495,000 unit at Marina Grande, a $200 million waterfront condominium in Riviera Beach, based on higher-than-expected maintenance costs.
In short, Gerber concluded, the buyer could afford it.
The ruling is important because condo buyers throughout South Florida are eager to get out of pre-construction contracts signed during the recent real estate frenzy. Now that the market has turned and the flippers market has died, many buyers are trying to undo their deals based on even minor changes to a project by a developer.
Nowhere in Palm Beach County is this battle raging more hotly than at Marina Grande. During the past year, more than two dozen lawsuits have been filed by buyers wanting out of pre-construction contracts for more than 30 units. Buyers claim in lawsuits that Marina Grande Ltd., a developer associated with Deerfield Beach's Boca Developers, changed the terms of the deal, giving them a possible escape clause. D&T's 2006 lawsuit was the first of these cases to go to trial in May.
AMBIGUOUS LAW
In its lawsuit, D&T, a partnership of two investors, objected to a proposed 30 percent increase in Marina Grande's maintenance fees. D&T said the increase triggered a Florida law allowing D&T to undo its 2005 pre-construction contract. Under Florida law, buyers can void purchase contracts if developers make changes a buyer considers ``material and adverse.''
Unfortunately, the law is vague about what ''material and adverse'' means, creating confusion among buyers and developers. In his July 6 ruling, Gerber for the first time sought to clarify the law when it comes to examining changes in a condo's proposed budget -- a big issue for buyers facing sky-high insurance increases.
Gerber wrote that a budget change is adverse only if a buyer cannot afford the proposed cost increases, based on that buyer's specific financial condition. If a buyer shows evidence the rise in costs ''outweigh the buyer's financial capabilities . . . the buyer should be able to void the agreement,'' he wrote.
Marina Grande attorney Manuel Garcia said he was pleased with the ruling, saying it was right to consider a buyer's individual circumstances. ''We think the conclusion is correct,'' said Garcia, of Fort Lauderdale.
But D&T lawyer Gary Nagle said Gerber's financial litmus test will create an unequal playing field.
''If you're a well-to-do buyer, you won't get out of this contract,'' said Nagle of Juno Beach. ``But if you're a marginal buyer with minimal financial resources, you can get out of that deal. We're going to appeal.''

NON-BINDING RULING
Gerber's ruling is not binding on dozens of other cases now in the works because the ruling does not come from an appeals court, said Charles W. Edgar III, a Palm Beach Gardens real estate lawyer not involved in this case.
But it is the first time a judge has tried to define the law's meaning, he said. ''It's not precedent, but it is a predictor of where other judges would go,'' Edgar said.
Although ruling for Marina Grande, Gerber rejected several arguments by the developer.
Gerber said he was not moved by Marina Grande's assertion that D&T was reneging simply because the flippers' market had died.
Gerber also would not toss the D&T lawsuit based on a recent change in the law. In May, Gov. Charlie Crist signed a bill that specifies that budget cost increases are not considered ``materially adverse.'' Gerber said he would not apply the new law to the D&T case because the purchase contract was signed before the law took effect.

Florida Condo and Pre-Construction contract legal actions continue to gain momentum

For the nation's real-estate lenders, the other shoe may be about to drop: condominiums.
Already plagued by rising home-loan defaults and foreclosures among overstretched consumers, major markets across the country -- including parts of Florida, California and Washington, D.C. -- are seeing rising foreclosures and bankruptcies of entire condo projects.
The problems are emerging as some buyers who signed contracts to buy new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market. Falling prices are forcing appraisals down, so banks aren't willing to lend the full amounts that people committed to in the sales contract.

"Closings that are scheduled to take place are not taking place," says Marvin Moss, a North Miami Beach real-estate attorney. He is suing several developers to help clients get out of contracts.

The condo market, while tied to the housing market overall, behaves differently under stress. While a single-family home builder generally constructs units as orders come in, a condo developer builds all at once and hopes for the best, adding risk. So while the speculative overhang of newly constructed single-family homes may have peaked in many markets across the country, the full force of the condo glut is starting to hit now.

With single-family homes, "you put up a couple of model homes and build the rest as you get sales contracts." says James Haughey, director of research at Reed Construction Data in Norcross, Ga. "But you have to build the entire...building before you can sell a single condo."

In 2006, the number of new condominium units completed jumped 145% to 102,800, from 41,900 in 2003, according to the U.S. Census Bureau. Last year was the highest level since 1985, when 135,800 units were built. So far this year, 48,354 units have been built and another 72,000 are under construction, according to New York research firm Reis Inc.

Downtown San Diego can expect 2,900 new units to arrive on the market in the next year, according to real-estate investment brokerage Marcus & Millichap. Hessam Nadji, a managing director at the Encino, Calif., firm, estimates it will take as long as 18 to 24 months for the most-saturated markets to buy up the glut of condo inventory -- if the economy overall stays strong.

Miami is in worse shape: The city added 4,549 condo units in 2006 and 3,276 so far this year. Another 7,985 will be delivered by the end of the year, with another 8,260 slated for 2008 to 2011, according to Reis, for a grand total of 24,070 news units between 2006 and 2011.

"More of the iceberg is being revealed, but we haven't seen it all yet," says Norman Radow, an Atlanta real-estate investor who works with lenders to rescue distressed condo complexes.
Typically, condo developers are required to pay off construction loans shortly after construction is completed. But with sales stalled, more developers are defaulting, creating headaches for banks and real-estate funds that financed the projects.

The percentage of bank construction loans overall that are in default has risen to 2.3% in the second quarter of 2007 from 1.0% at the end of 2005 . "Condos are a significant share of defaults and delinquencies going on," says Matthew Anderson of Foresight Analytics, an Oakland, Calif., research firm. His analysis shows condo lending ballooned to $31.3 billion in 2006 from $8.4 billion in 2003. These figures don't include the large amounts flowing into condos from hedge funds and investment banks.

One of the biggest condo lenders, Chicago's Corus Bankshares, has seen its $3.7 billion portfolio of condo loans deteriorate. The value of the bank's nonperforming assets has skyrocketed to $242 million in the quarter ended June 30 from $620,000 a year ago. The bank continues to be profitable, and made three new condo loans worth $400 million, though it predicts darker times are ahead. "It would not surprise us to see an even greater impact on earnings over the next several quarters, or even years, depending on when the market improves," Chief Executive Robert Glickman said in a note to shareholders.

The failures so far have been concentrated among developers that bought land -- or existing rental apartments to convert to condos -- at the top of the market in late 2005 or early 2006. The worst collapses have so far involved condo conversions. Developer Triton Real Estate Partners of Annapolis, Md., bought a Rockville, Md., complex known as the Pavilion in November 2005 for $117 million, with plans to pump in $30 million to upgrade and sell the units. There are 434 units, so the average price it paid was $271,000 a unit. Triton changed the name to the Monterey and offered the one- to three-bedroom units for $300,000 to $500,000.

The sales didn't materialize and Triton failed to pay its lender, CBRE Realty Finance of Hartford, Conn., which foreclosed on the property in May. With the sales market on the rocks, the lender had to write down the project's value by $7.8 million, forcing the company to record a $4.6 million loss in the second quarter. The commercial-property lender, incorporated as a real-estate investment trust, has stopped making new investments and almost missed a $17 million payment on a line of credit from Wachovia Corp. It hopes to restart the sales program at the Monterey complex shortly.

Triton and CBRE declined to comment.

Buyer's remorse is also causing problems for some developers. Cindy Cicala plunked down a 10% deposit on a $370,000 two-bedroom condo in a new project in Tampa, Fla., in August 2004 -- a time when investors were elbowing each other aside to sign contracts. The site was particularly attractive to Ms. Cicala because, in addition to superb views, her unit was to be finished by August 2006, making it one of the first high-rise residences to be built in the city's reviving downtown.

But in April, 2005, the developer asked for an extension. "It was just one delay after another," says Ms. Cicala, a 51-year-old residential-mortgage broker. She decided she didn't want to close on the condo, claiming the developer hadn't held up its end of the contract. Ms. Cicala says she asked for her deposit back but hasn't received it, so she sued under a federal law that guarantees condos must be delivered within two years unless the developer can prove certain extenuating circumstances.

Her attorney, Harry Lee Coe IV, says Ms. Cicala and other clients "are seeing their investing potential has dwindled, and they are now no longer at the front of the pack -- and you don't want to be in the middle of the pack in a bad or down market."

Left holding the bag amid the defaults and foreclosures are the banks and real-estate investment funds that lent money to people such as Farbod Zohouri, an Atlanta developer who took out $300 million in loans for more than a dozen projects in 2005 and 2006. Within a year, all were foreclosed or had filed for bankruptcy protection.

In a sign of how widespread the condo frenzy was among lenders, Mr. Zohouri's financing sources ranged from tiny local banks to Lehman Brothers, which lent him $180 million for two Orlando condo-conversion projects that flopped. Several commercial banks lent him money for five projects, despite his relatively small operation and spotty track record, which included a settlement with the federal government on mortgage-kickback allegations.

Mr. Zohouri, who goes by "Fred," says he is "an honest person" who is working hard to get his investors' money back. He says because of possible legal actions, he can't explain exactly what went wrong.

Underlying the defaults was a loosening of lending standards. In the past, wary of the high risks posed by condo sales, lenders such as commercial banks would give money to condo projects with the understanding that if the condos didn't sell, the developer could rent them and still repay the loan. That would limit the amount banks would lend, because the cash from renting units is slow and steady and can cover a smaller amount of debt than the amount generated by selling all units within a year of completion, as most condo projects aim to do.

But in the latest boom, a host of nonbank lenders began throwing cash at condo projects, allowing developers to pay prices for land and buildings such that they could pay back the loans only if the units sold at high prices.

Mr. Radow, the Atlanta real-estate investor, says troubles in the condo market stem from the proliferation of new players in the real-estate finance world, many of whom never went through bad times. Before the condo boom, there were only about a dozen major sources of equity or mezzanine debt, the riskiest -- and potentially most rewarding -- parts of real-estate finance. In past five years hedge funds, real-estate funds, private equity and community banks all got into the act.

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The New York Times reports on Florida. “In a sign that the real estate slowdown has hit even the most desirable locations, the developer converting the Savoy Hotel in the South Beach section of Miami into multi-million dollar Fendi-designed condominiums and condo hotels may be facing foreclosure. ‘You have a situation where you have one of the most beautiful locations in Miami right on the beach. You have an amazing architect. You have an amazing designer,’ said Seth Semilof, a former broker. ‘This is the first of many that’s going to go down.’”

“The vice chairman at Prudential Douglas Elliman, Dolly Lenz, was hired to market the apartments. Ms. Lenz said that the project fell apart because the developers could not get enough money from banks to finance the construction. ‘The banks just felt that the whole Miami market was an issue to start,’ she said. ‘I introduced them to every bank on the planet. They couldn’t get financing.’”

The Wall Street Journal. “Problems are emerging as some buyers who signed contracts to buy new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market.”

“Falling prices are forcing appraisals down, so banks aren’t willing to lend the full amounts that people committed to in the sales contract.”

“‘Closings that are scheduled to take place are not taking place,’ says Marvin Moss, a North Miami Beach real-estate attorney. He is suing several developers to help clients get out of contracts.”

“Miami added 4,549 condo units in 2006 and 3,276 so far this year. Another 7,985 will be delivered by the end of the year, with another 8,260 slated for 2008 to 2011, for a grand total of 24,070 news units between 2006 and 2011.”

“Buyer’s remorse is causing problems for some developers. Cindy Cicala plunked down a 10% deposit on a $370,000 two-bedroom condo in a new project in Tampa, Fla., in August 2004, a time when investors were elbowing each other aside to sign contracts. Her unit was to be finished by August 2006, making it one of the first high-rise residences to be built in the city’s reviving downtown.”

“But in April, 2005, the developer asked for an extension. ‘It was just one delay after another,’ says Ms. Cicala, a residential-mortgage broker. She decided she didn’t want to close on the condo, claiming the developer hadn’t held up its end of the contract.”

“Ms. Cicala says she asked for her deposit back but hasn’t received it, so she sued under a federal law that guarantees condos must be delivered within two years unless the developer can prove certain extenuating circumstances.”

“Her attorney, Harry Lee Coe IV, says Ms. Cicala and other clients ‘are seeing their investing potential has dwindled, and they are now no longer at the front of the pack — and you don’t want to be in the middle of the pack in a bad or down market.’”

“In a sign of how widespread the condo frenzy was among lenders, developer Farbod Zohouri’s financing sources ranged from tiny local banks to Lehman Brothers, which lent him $180 million for two Orlando condo-conversion projects that flopped.”

“Several commercial banks lent him money for five projects, despite his relatively small operation and spotty track record, which included a settlement with the federal government on mortgage-kickback allegations.”

“Zohouri says he is ‘an honest person’ who is working hard to get his investors’ money back. He says because of possible legal actions, he can’t explain exactly what went wrong.”

The Street.com. “The developers of Jade Ocean, a luxury high-rise condo near Miami Beach set to be completed in 2009, claim they’ve already sold 98% of the building’s units.”

“Of course, the reality is that this ‘pre-construction sales’ number at Jade Ocean carries little meaning. It’s a phrase that previously impressed people but carries little meaning in present-day Miami, which is increasingly looking like the Netherlands in the aftermath of the Tulip Craze more than 300 years ago.”

“Buyers will walk away from their 20%-down deposits because of rapidly falling prices and a huge inventory overhang that will only get worse in the market, several industry experts say.”

“South Florida real estate agent Mike Morgan estimates that condo flippers have made up 90% of the buyers at the projects Corus has lent to in Miami. ‘These flippers are now under water in most Corus buildings based on what they paid and where the market is today,’ he says. ‘But the market is getting worse.’”

“‘I don’t know anyone that is loaning on these condos to investors,’ Morgan says. ‘If it is not your primary [residence] , you have a problem. I am predicting condos in less-desirable areas will sell for 25 cents on the dollar.’”

The Herald Tribune. “Some Southwest Florida builders are seeing a better year than 2006. ‘We’re actually seeing good increase over last year,’ said Lee Wetherington. ‘The only caveat is that last year was probably the slowest year we’ve ever had.’”

“‘Prices are 20 to 25 percent less than they were a year ago,’ Wetherington said. ‘We’re also getting a lot of help from our suppliers and subcontractors. Their prices are also coming down.’”

“The price of new homes is now substantially less than the price of existing homes — at least 20 percent lower, Wetherington said.”

“‘I had one client who saw a house for $1.75 million. But when he came to us, he realized we could build the same model for $1.25 million,’ Wetherington said. ‘Guess what? He signed a contract.’”

“‘Some national builders will leave the area; other builders will shut down,’ Wetherington said. ‘I don’t expect any real upturn until 2009, and we won’t return to normalcy until 2010. I haven’t seen anything like this since the oil embargo in the 1970s.’”

“Sun-soaked Southwest Florida is largely considered an enclave of wealth. But the last year of suffering in the real estate market has slowly percolated to nearly every industry in the region.”

“Tina Stebner is a college-educated former British Petroleum account executive who came to Sarasota from Chicago three years ago. She bought a home two years ago, at the height of the real estate boom.”

“When she lost her job at BP, she began temping. But even those sporadic jobs ‘ran out’ in the past year. In July, after looking for work unsuccessfully for months, she landed a sales job in Venice. But two weeks ago, she was let go because of ‘economic uncertainty.’”

“‘I was brought up to believe that you go to school, get a college degree and that you buy a house, it’s the smartest investment you will ever make,’ Stebner said.”

“Meanwhile, the back rooms of area pawnshops are filling up with saws, drills and other tools and equipment pawned by displaced workers in the construction trades. ‘We’re being swamped, to the point that we’ve pretty much stopped taking it,’ said James Sewell, co-owner of Goldcoast Pawn & Jewelry in Sarasota. ‘It’s gotten really bad in the last four to five months.’”

“Sewell said many of the former construction workers tell him they are leaving the Sunshine State. The unemployment situation combined with rising taxes and property insurance premiums has made Southwest Florida unlivable for many, Sewell said. ‘It’s gotten to be like California, but without the wages.’”

From Florida Today. “A national economist told representatives of the housing industry Thursday not to count on a sales turnaround in the Sunshine State for at least 18 months.”

“‘Are things going to turn around next year? No,’ said Ted Jones, chief economist with one of the nation’s largest title companies. ‘We’re going to have another 18 months of ugly coming out of this subprime mess’”

The St Petersburg Times. “Jones, a prognosticator often cited by Realtors’ groups, told agents that rashly approved mortgages, the worst of which he dubbed ‘time-bomb loans,’ would help keep the Florida housing market hobbled until 2009.”

“‘If you think it’s bad now, you haven’t heard the end of this,’ Jones said to audible groans from Realtors who’d enjoyed earlier pep talks from the likes of Gov. Charlie Crist.”

“Jones blamed a get-rich-quick ethos that drew gamblers into the housing market and encouraged bankers to make risky loans on the assumption the good times would roll forever. ‘What is the difference between flipping real estate in Florida and playing craps in Vegas?’ Jones said. ‘You get free drinks in Vegas.’”

“Jones described prospective home buyers as buzzards circling fresh highway roadkill, waiting for prices to fall further. He urged Realtors to speed up the process by confronting sellers with the reality of a glut that’s left 41,000 homes on the market in the Tampa Bay area alone.”

“‘We’ve got to sober up sellers,’ Jones said. ‘I don’t care what you paid for it.’”

The Sun Sentinel. “For those with a mortgage who want to refinance…it can be done, but not if your property’s value has fallen off a cliff.”

“‘Banks haven’t stopped lending money to people, they’ve just made it more practical on both sides,’ said Casey Casperson, a senior loan officer in Palm Beach Gardens. ‘Now they’re making borrowers prove they can pay it back.’”

“During the housing boom, lenders didn’t require that of borrowers. As unbelievable as that sounds, let’s give money to people without checking to see if they have a job or looking at their pay stub, it was the way the subprime market worked.”

“What happened a few weeks ago was investors who bought those mortgages from lenders simply stopped buying. Now that no one is willing to take on the riskiest mortgages, lenders say they’ve raised their standards.”

“At Wachovia, those 5 percent down payment mortgages with no verification are gone. If you want a loan that does not require proof of income, you must put 20 percent down. And you’ll need a higher credit score than in the past for any high loan-to-value mortgage, a spokesman for SunTrust said.”

“It’s similar for borrowers with credit that’s not good — 20 percent down payments are being required.”

“Jonathan Klein, general manager of Associates Home Mortgage in Boca Raton, was recently working on a $480,000 mortgage for a home near Loxahatchee, in western Palm Beach County, a few weeks ago. The buyer was making a 25 percent down payment and the interest rate was to be 7 percent.”

“The day the loan was scheduled to close ‘was the day when the market completely collapsed,’ he said.”

“In a matter of two hours, the interest rate rose to 8 percent and the borrower had to pay 5 points, for an extra cost of $17,000 on the loan, to prevent the deal from falling through.”

Are you in a condo or pre-construction contract? Would you like to explore options regarding your legal rights? Often buyers have options, not only break the contract, but to get a refund on deposit money.
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Florida Condo Buyers sue to get out of purchase contracts

The Related Group and GDC Premier Communities are the targets of two federal lawsuits filed Thursday by contract holders trying to get out of condo purchases in the worst housing slump in 16 years.
The buyers are seeking to get back their deposits on units at Related's Ocean Four in Sunny Isles Beach, Fla., and Alaqua, an Aventura, Fla., project by a GDC. The suits claim that excessive construction delays and increased maintenance fees should allow them to cancel the contracts.
The suits were filed as proposed class actions, but it's not known how many contract holders would qualify to join in the suit.
An Ocean Four sales center receptionist who declined to give her name said the 273-unit building is sold out and most buyers already have closed.
The 193-unit Alaqua has about 20 units left to close, according to Michele Kvaska, a sales associate at International Sales Group, which is handling sales for the project.
Executives at Related and GDC Premier Communities did not return several calls seeking comment.
"I sent the developers' attorneys a rough draft of the complaint about a month ago," said Robert Cooper, an Aventura real estate attorney representing the plaintiffs in both cases. "The attorney for Ocean Four at Greenberg Traurig said, 'Go ahead with the suit.' I can't remember if Alaqua responded, but the general answer I've been getting from developers are either 'I did nothing wrong' or 'sue me.'"
Miami resident Alejandro Itkin and Memrich Realty, owned by Bal Harbour resident John Meyerovich, are the plaintiffs suing Ocean Four.
They claim Related raised the condo association's operating budget by more than 65 percent between contract signings and completion. The monthly maintenance fee for Meyerovich's unit jumped from the initial estimate of $748 to $1,240, according to Cooper.
Under state law, buyers are allowed to cancel condo purchase contracts if "material and adverse" changes are made to condo documents filed with the state. But state regulators and developer's attorneys disagree about whether higher maintenance fees open the door on rescission.
The developer blamed the fee increase on rising property insurance costs, Cooper said. Other fees totaling about $100 per month also were added to monthly fees, the complaint states.
The contract promised units would be delivered within two years of signing, but the buyers said they weren't asked to close until several months beyond the two-year window.
Related didn't own the site when it started building the condos, but contract holders were not notified of that at signing, the complaint said.
Amended disclosure documents submitted in November 2006 -- about 18 months after contracts were signed -- stated the "developer has a contractual interest in acquiring title to the property which is intended to be developed as the condominium."
As of last December, Staci Rutman, a Greenberg Taurig attorney representing the developer, confirmed Related still did not own the property, Cooper said.
The lawsuit also questioned whether Related complied with a federal law requiring projects to be registered with federal Department of Housing and Urban Development.
The case has been assigned to U.S. District Judge Joan A. Lenard in Miami.
A developer who commits to complete the building within two years of a contract signing receives a HUD registration exemption, Cooper said.
Some developers choose to register and provide estimated delivery dates, which can later change without penalty if considered reasonable. Many developers, including Related, have opted for the two-year commitment and skip the federal registration process, he said.
As in most contracts, Related's contract states the "unit" will be completed but not the building in its entirety.
Cooper argues the language does not exempt Related from federal registration, and the lack of registration would make the contract invalid.
"You shouldn't have to move into a place that's half done," Cooper said. "People don't want to move into a construction site."
Robert Chasnow, a Washington, D.C.-based partner with Holland & Knight who is not involved in the litigation, said there is no question the exemption requires the unit, not the building, to be completed.
"The standard is whether the unit is completed," he said. "HUD focuses on the unit. But if there is no certificate of occupancy and the purchaser can not have lawful access to the unit, then that unit is not completed."
Cooper said "the courts are obligated to interpret the law. The courts have the final word, not HUD."
ALAQUA COMPLAINT
The complaint against Alaqua also alleges unreasonable project delays and cites the lack of federal registration. Budget changes were not raised as an issue in the suit against GDC.
The plaintiffs in the Alaqua case signed contracts to buy four units. Alan Ahmad Mourad deposited about $100,000 on a $492,000 unit. Mourad and his son Ahmad also combined to put down $100,000 on another unit priced at $500,000. Friends Ruben Corso and Manuel Cabeza signed a contract for a $324,000 unit and deposited $65,000 with the developer. And Francisco Lopes is on the hook for a $497,000 unit on which he put down $100,000.
Like the Ocean Four complaint, the Alaqua suit was filed under the federal Interstate Land Sales Full Disclosure Act, which was enacted in 1968 to protect consumers from fraud and abuse following and earlier spike in Florida swampland sales. The case was assigned to U.S. District Judge Adalberto J. Jordan in Miami.
The federal law has become a common tool for attorneys since South Florida's condo market started to crash in the past 18 months.
Cooper, who has been taking buyer's cases on a contingency basis, said he receives about 30 calls a week from desperate contract holders, who want to get out of their contracts. He has filed or is preparing about 60 condo cases. Eighty percent of those are in South Florida; others are in Orlando, Tampa and the Florida Panhandle.
"Of course not every case has grounds for a lawsuit, but this shows the downward trend in the condo market is continuing," he said. "When real estate prices were going up, you had sellers trying to get out of contracts because they thought they could resell for a higher price. Some would simply not show up for closing. Now it's obviously the opposite."
The wave of panicky contract holders includes sophisticated investors, speculators and users.
In many cases, lawsuits have become a last resort for investors who didn't anticipate the condo slowdown when they were signing contracts and annual appreciation was in double digits. Florida became one of the nation's leading markets for real estate speculators.
About 80 percent of buyers who have contacted Cooper say they were convinced by sales pitches that buyers would be able to flip units at a profit before closing, which was common before the market peaked.
Itkin, who is suing the Related Group trying to recover a $240,000 deposit on a $960,000 unit, was one of those people.
"I bought it with the hope of reselling it," he said. "I wasn't expecting I would have to close, but I was prepared to close if there were no adverse materials in the contract. The main reason why I want out is they sent me a new budget with a monthly assessment that went from $798 to $1,291. Now I would have to carry with higher expenses, and it makes it more difficult to sell."
Itkin said he is an experienced investor who owns six other condo units in South Florida, including others by Related.
He also questioned Related's resale program and whether or not they were trying to sell his unit as agreed.
"I sent three different people to the office and told them to ask for a unit in the line where my condo is." Itkin said. "They were showed other units but not mine."
ORDINARY INVESTORS
Cooper said his clients include police officers, teachers and retirees who used nest eggs as deposits on units worth up to $1 million.
"You see the sophisticated investors, but there also are those people who really had no business in the investment world," he said. "They simply can't weather the negative cash flow even if they rent those units when you factor in operating expenses like property taxes, insurance and maintenance fees."
Privately held home-builders have not disclosed their walkaway rates, but publicly held companies must say how they stand on contracts.
Bonita Springs, Fla.-based WCI Communities, one of Florida's most active luxury home and condo builders, reported this month that 17 percent of buyers defaulted on closings since the beginning of the year.
A large number of contract holders who follow through on closings are quickly putting the units back on the market for resale, holding down prices.
Kvaska said about 30 Alaqua units are up for resale.
"The developers should have known this was coming," Cooper said. "They knew they were selling to people who wouldn't occupy these units. They should have looked at these people's finances. They put a blind eye, took their deposits and didn't care what happened from then."
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Florida Condo preconstruction deposit recovery

New condo projects and multi-family community sales have slowed to a trickle as developers and investors decide whether to hold 'em or fold 'em.

In the fold 'em camp is D.R. Horton (NYSE: DHI), which recently walked away from a 15-acre purchase in Boynton Beach and left a $1 million forfeited deposit on the table, according to two sources.Tampa-based Carlyle Investments, owner of the property, confirmed a report that Horton forfeited a deposit.

The land, north of Gulfstream Boulevard between Old Dixie Highway and Federal Highway, was under contract for $36.96 million, or $120,000 for each of the 308 units allowed by zoning. Horton, which bills itself as the nation's largest home builder, planned to call the condominium community Las Fontanas.

Horton's second quarter SEC filing said it would renegotiate or cancel some options for land to adjust to market conditions. It's not the only builder doing so.

In the quarter that ended in August, Miami-based Lennar (NYSE: LEN) said it wrote off $15.8 million in option deposits and pre-acquisition costs, more than five times the $2.9 million in the previous year's quarter.
Florida Condo preconstruction deposit recovery
William Friedman, chairman and chief executive of New York-based Tarragon Corp. (NASDAQ: TARR) said his company, which is active in South Florida, has also walked away from a number of Florida deals, primarily on the west coast.

"We have adhered to our strict underwriting criteria and have, in some cases, renegotiated terms and, in others, walked away from contracts and written off pursuit costs," Friedman said in August.

"We know that deal walk-aways are happening around the state from anecdotal stories we are hearing," said Jack McCabe, CEO of McCabe Research & Consulting in Deerfield Beach. "Combined with conversion reversions, it's hard, at this point, to judge the depth of the trend or what the long-range impact will be."

It is not just new condo deals that are feeling the effects of a market slide.

Some condo conversion buyers who bought at the very top of the market are now faced with a dilemma, according to Robert Given of CB Richard Ellis.

"They can sell now to another converter or investor for a $10 million loss, convert the project now for a $2 million loss or renegotiate a term loan and hold as a rental community until the market changes," he said.

McCabe sees a market slowdown as an invitation for traditional investors and bargain hunters to move back into the multi-housing market.

As cap rates have climbed higher than 5 percent throughout Florida, traditional rental community operators can now buy based on the rent rolls.

Atherton-Newport LLC, an Irvine, Calif.-based real estate and investment firm recently paid $16.5 million, or just under $86,000 a unit, for the 192-unit Country Lake Apartments rental community, on 24 acres in West Palm Beach.

Nicholas Lizotte, acquisitions director for Atherton-Newport, said his company plans to update and reposition the 21-year-old rental property with $1.8 million in improvements and reopen units damaged by Hurrican Wilma.

"We are running at 99 percent occupancy on the occupied portion already," Lizotte said. It's Atherton-Newport's third buy in South Florida, and a fourth should be closed shortly, according to Lizotte.


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Miami condo glut continues, would you like your deposit back?

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In the middle of the biggest glut of condominiums in more than 30 years, Miami developers keep on building.

The oversupply will force prices down as much as 30 percent, the worst decline since the 1970s, and help push Florida's economy into recession as early as October, said Mark Zandi, chief economist at West Chester, Pennsylvania-based Moody's Economy.com, who owns a home in Vero Beach, Florida.

FLORIDA CONDO DEPOSIT RECOVERY SERVICES

``Florida is the epicenter for all the problems that exist in the housing industry,'' said Lewis Goodkin, president of Goodkin Consulting Corp. and a property adviser in Miami for the past 30 years, who also foresees a recession. ``The problems we have now are unprecedented and a lot of people will get burnt.''

Thirty-seven new high-rise condos and 20,000 new units are being built in Miami's 1,040-acre downtown, where sales fell almost 50 percent in May, according to the Florida Association of Realtors. The new units will join the 22,924 existing condos in Miami-Dade County that were for sale in April, according to Jack McCabe, chief executive officer of McCabe Research & Consulting LLC in Deerfield Beach, Florida. That's the most unsold units since McCabe began tracking sales in 2002.

``Have you been to Miami lately?'' Florida Governor Charlie Crist said at a homebuilders' conference last week in Orlando. ``It's like we have a new state bird: the building crane.''

Construction Jobs

While the housing industry is responsible for 10.6 percent of the nation's jobs, in Florida it accounts for 20 percent, Zandi said. Florida construction jobs fell 2.9 percent in May to 626,200 from the peak in June 2006, according to the U.S. Bureau of Labor Statistics.

The national housing industry's weakness prompted Federal Reserve policy makers this week to cut their forecasts for U.S. economic growth for the next two years.

The economy will grow by 2.25 percent to 2.5 percent in the fourth quarter of 2007 from a year before, compared with a range of 2.5 percent to 3 percent the Fed predicted in February, the board said in a report to Congress.

Florida's robust economy of 2001 to 2005 was driven by the thousands of well-paying jobs related to the real estate market and homeowners who used home-equity loans to pay for items such as boats and big-screen TVs, McCabe said.

``All those jobs are going away now, and we're seeing the trickle-down effect in declining sales in big-box retailers and home-furnishing manufacturers,'' McCabe said. ``Florida is headed to a recession.''

Influx of Retirees

A Florida recession could be averted and the state housing industry's ``serious problems'' solved by an influx of American retirees and foreign buyers, said David Denslow, a University of Florida economist in Gainesville.

``The wave of baby boomer retirees is gathering momentum, and the weaker dollar makes Florida seem like a bargain to Europeans,'' Denslow said. ``With any luck at all that will sustain us.''

Downtown Miami developers already are offering incentives for brokers who connect them to buyers. John Rosser, president of the Key Biscayne, Florida-based John Paul Rosser & Associates Inc. estate brokerage, said he is usually paid a commission of as much as 5 percent when a sale is completed. For the Capital at Brickell, a block off Miami's Brickell Avenue, he was offered what he called ``an unheard of'' deal to steer buyers to one of the 832 units proposed. A salesman said Rosser would be paid 5 percent -- payable when buyers put down a deposit. The project has just broken ground and won't open until 2011.

Puig Bankruptcy

Puig Development Group, a closely held company that converted rental apartments to condos, filed for Chapter 11 bankruptcy protection on May 29. The Hialeah, Florida-based Puig and its subsidiaries controlled 2,900 units in Florida, including 980 condos, worth about $210 million, said Ronald Glass of Atlanta-based GlassRatner Advisory & Capital Group LLC, chief restructuring officer for the Puig properties.

``Puig got a little overzealous and a little overly optimistic, and was caught when the market slowed,'' Glass said.

Florida banks have already quit making loans to Miami condo developers, said Kenneth H. Thomas, a Miami bank consultant and a lecturer at the Wharton School at the University of Pennsylvania in Philadelphia.

``South Florida lenders were the first to put money into the condo market, they were the first to see the oversupply and they were the first to get out,'' Thomas said.

Because of the lag time between making construction loans and closing sales on completed condos, loan problems showed up for Florida lenders in first-quarter bank statistics from the Federal Deposit Insurance Corp. in Washington, Thomas said.

Overdue Bills

Florida banks posted a 43 percent jump in the first quarter in loans no longer paying interest compared with the last three months of 2006, while the number for banks nationwide rose 13 percent, according to the FDIC.

Loan payments that were one to three months overdue to Florida banks increased 30 percent in the first three months of 2007 from the fourth quarter of last year. The same number for banks nationwide fell 1.8 percent, the FDIC said.

Angel Medina Jr., who runs the Southeast Florida operations of Regions Bank, a division of Birmingham, Alabama-based Regions Financial Corp., said Regions has financed projects by two of Miami's biggest condo developers: Related Group of Florida, headed by billionaire Jorge Perez, and Ugo Colombo's CMC Group.

The bank hasn't financed any Miami condos in the past 18 months because development is ``too aggressive,'' Medina said.

Chicago Lender

That leaves the business to lenders such as Corus Bank, a division of Chicago-based Corus Bankshares Inc. Corus has lent a total of $1.07 billion to eight condo developments in downtown Miami, according to the company's Web site.

Corus's net income in the first three months of 2007 was $26.4 million, a 39 percent drop from a year earlier, according to a company regulatory filing.

``It would not surprise us to see an even greater impact on earnings over the next several quarters, or even years, depending on when'' the national housing market improves, Chief Executive Officer Robert Glickman said in a statement.

Miami condo sales fell to 599 in May, a drop of 46 percent from a year earlier, according to the state realtors association. Condo sales in Orlando, home of Walt Disney World, have plummeted 80 percent, said Zandi of Moody's Economy.com.

``The statistics are scary,'' said Michael Wohl, a partner in the Pinnacle Housing Group, a Miami developer that has stayed out of the condo market. ``There's going to be a lot of blood in the water in the next 18 months.''

Hedge Funds

With prices falling, international investors, hedge funds, private equity firms and Wall Street banks are beginning to shop for deals, said Peter Zalewski of Condo Vultures Realty LLC, a consulting firm in Bal Harbour, Florida. Miami lags only New York in the number of foreign visitors to U.S. cities, attracting 5.3 million in 2006 from Europe, Canada and Latin America, according to the Greater Miami Convention & Visitors Bureau.

``Bigger and bigger funds are coming to me wanting to buy,'' Zalewski said. ``Prices have yet to hit bottom because the bulk of Miami properties won't come on the market for another six months.''

Cement dust swirls at 10 high-rise condo construction sites on Biscayne Boulevard, with its prime locations overlooking the waterfront; at six sites on Brickell Avenue, home to the glass and steel offices of Banco De La Nacion Argentina, Banco Industrial De Venezuela and Banco Santander Brazil International; and at eight locations on the Miami River, which splits the city into north and south. That's according to data collected by the Miami Downtown Development Authority.

Covering Costs

Since it can take up to four years for a condo project to travel from conception to completion, many of the towers rising from the coral rock of Miami were planned and financed during the Florida housing boom, which lasted from 2001 to 2005.

Lenders typically require enough advance sales to cover the cost of a construction loan. Customers' deposits, however, don't always mean the sales will close, said Ian Bruce Eichner, a developer whose latest Miami Beach condo tower is scheduled to open in November.

``The market is as close to a depression as Miami has seen in 30 years,'' Eichner said. ``There's a gargantuan supply of homes and the overwhelming preponderance were built for speculators, not for people who are living there.''

As much as half of those putting down deposits for Miami condos are speculators looking to flip units, or sell them quickly for a profit without living in them, said McCabe of McCabe Research.

Buyers Walking Away

With sale prices falling, McCabe said he expects up to 50 percent of them to walk away from their deposits in the next 18 months rather than complete the sales.

``What's going to happen to all those units?'' Eichner asked. ``God only knows. You couldn't give me a piece of property in Miami for nothing. I like sleeping at night.''

Condo developers encouraged short-term investors, whose deposits helped them secure funding, Goodkin said.

``The developers didn't get to start building until they had a certain number of contracts signed, so anyone putting down money was good for them,'' Goodkin said.

Many ``flippers'' closed on their units and now can't sell them, said Michael Cannon of Integra Realty Resources-Miami Inc., leaving completed condo towers with floors of dark windows and empty balconies.

The Jade Residences at Brickell is an example, Cannon said. The 338-unit, 48-story waterfront tower, a block from the Brickell Avenue financial district, opened in August 2004 with buyers willing to pay as much as $5 million snapping up all the units. Now, the new owners have listed 112 condos for sale and 17 units totaling $15 million are in foreclosure.

Trade Center

Jade Residences developer Edgardo Defortuna, president of Fortune International Realty, didn't return calls seeking comment.

The desire to strengthen Miami's position as a center of international trade is spurring the growth, said Dana Nottingham, executive director of the Miami Downtown Development Authority.

``We want to be a premiere urban center, not just nationally but globally, and downtown residential development is part of the formula for a great city,'' Nottingham said.

Mayor Manny Diaz said he's happy about what he calls ``the unprecedented flurry'' of residential development because it reduces sprawl and brings more people and money into Miami.

``We will continue to build because I see more and more interest from foreign investors coming into Miami,'' Diaz said in an interview. ``I don't think we're done.''

Island Skyscrapers

For Rosser, a former Air Force and airline pilot who's been working in the South Florida real estate industry for 19 years, a puzzling transformation is taking place on Brickell Key, a 44- acre island made of dredged bay sand connected to the rest of Miami by a 1,000-foot four-lane bridge.

On Brickell Key, 10 high-rises loom over the island's two tree-lined streets. The development is the product of a ``building frenzy,'' Rosser said.

The island's master builder is Swire Properties Inc., a Hong Kong-based developer that's a subsidiary of Swire Pacific Ltd. Swire is building a $140 million tower on Brickell Key called Asia, which is slated to open in December, according to Stephen Owens, president of Swire Properties Inc.

``Anyone who says they're not concerned about the oversupply of condos is practicing the ostrich theory,'' said Owens, who lives and works on Brickell Key.

All of Asia's 123 units are sold, with the average size of the units, 2,800 square feet, and the top sale price of $6 million discouraging speculators, Owens said.

Prices Fell

In the 1970s, when condos were a new product, Florida developers built 500,000 units and prices fell 50 percent, said Brad Hunter of MetroStudy, a research firm in West Palm Beach.

``The difference is, back then they were two-story condo buildings that had $50,000 units,'' Hunter said. ``Nowadays they are $700,000 units in 20-story buildings. Instead of building too much stuff that people could afford like we did then, this time we built too much stuff that people can't afford.''

A lot of the inventory 30 years ago was sold off and converted to rental apartments, Goodkin said. That solution won't work now because prices have soared and properties coming on the market will compete with existing condos whose prices have plummeted, he said.

Goodkin said opportunistic investors will buy construction loans from banks at a discount of 30 percent or more.

``The vultures are in the trees,'' Goodkin said. ``Reality has become the new pessimism.''

Holocaust Survivor

Developer Tibor Hollo, for one, isn't worried about Miami's condo glut. Hollo, 80, was born in Hungary and spent his teenage years in two World War II-era Nazi extermination camps, Auschwitz and Matthausen.

Hollo started building in Miami in 1956 and now his Florida East Coast Realty Inc. has two high-rises under construction, the $603 million, 787-unit Villa Magna, and the $120 million, 635-unit Opera Tower.

``Residential buildings, if they are well-located and top of the line, they will sell,'' Hollo said in an interview in his Biscayne Boulevard office, where the east-facing windows offer a vista of about a dozen new condo constructions.

Well-to-do Central and South Americans like Miami because of its Hispanic culture, while the dollar's weakness against the euro has made Miami attractive to Europeans who seek second homes in the Florida sunshine, Hollo said.

``We sold 38 units of the Opera Tower's 635 units to Russians,'' Hollo said, his eyes widening. ``I would never have dreamed it. I would understand 38 Venezuelans, not 38 Russians.''

The skyline of Miami is visible from Key Biscayne, the barrier island where John Rosser lives. Some nights the real estate broker scans the new buildings and sees more dark windows than lighted.

``This is dumbfounding to me,'' Rosser said. ``It's a building boom in the middle of a housing bust.''

NY Times speaks of Condo Deposit Recovery in Florida

(New York Times)

MIAMI, May 25 — As dozens of condominium towers conceived during Florida's real estate boom near completion, investors who snatched up units in the preconstruction phase in hopes of turning a quick profit are increasingly trying to break contracts, even walking away from fat deposits.

“Motivated” sellers are flooding online forums like Craigslist with advertisements for condo units still months or years from being finished. And lawyers have been inundated with calls from people hoping to avoid closing on units they bought during the speculative craze of 2004 and 2005.

“I get two or three of these calls a day,” said James Ryan, a lawyer in Boca Raton who said he had 40 clients looking to get out of condo contracts. One, Mr. Ryan said, abandoned a $340,000 deposit rather than close on a $1.6 million unit that lost its appeal as the market faltered.

The numbers suggest that it will only get worse. In Miami-Dade County alone, 8,000 new condo units will be completed this year and nearly 12,000 more in 2008.

But demand has dropped markedly, and people who thought they could “flip” condos — buying, then selling for a steep profit before construction is done — are parting with that fantasy. After years of stunning price increases — 25 percent in the West Palm Beach-Boca Raton area, for example, from March 2005 to March 2006 — condo prices have started dropping.

Condominiums in West Palm Beach and Boca Raton sold for a median price of $211,800 in March, down from $224,600 a year earlier, according to the Florida Association of Realtors. And in Fort Lauderdale, the median price in March was $195,500, down from $202,600 the previous year.

As a result, many buyers want out — not an easy prospect unless they are willing to forfeit the 10 percent or 20 percent they put down, from $15,000 for an inexpensive studio unit to hundreds of thousands of dollars for a waterfront penthouse.

“I see buyers unleashing all possible means to try to get out of contracts,” said Gary Saul, a lawyer in Miami for developers, adding that in some projects, 20 percent of buyers want their money back.

Frank Scarfone, a retired engineer who bought two preconstruction units at Hollywood Station, a complex going up in Hollywood, is seeking to cancel his contracts. Each unit is priced at $300,000. The developer promised a city view from both units, Mr. Scarfone said, but now another building in the complex is blocking it — a change that he said made the contracts unenforceable.

He sent a letter demanding his total deposit of $120,000 back, and after getting no reply, picketed the developer’s office. Then Mr. Scarfone called a lawyer, Matthew Schlesinger, who has been unable to recoup the deposit so far.

“If we have to sue,” Mr. Scarfone said, “we’re planning on suing.”

Tom Leon, a retired business executive who moved here from Illinois, said he planned to give up $200,000 in deposits on two condo units in Miami, priced at $500,000 each, after finding “no loopholes” in his contracts. He said he was not especially bitter, since he had made money flipping other properties at the height of the boom.

“I’m of the frame of mind that you have to be prepared in business or investments to take a loss,” said Mr. Leon, 72, adding that he never had any intention of living in either of the units. “There are some people that mentally can never bring themselves around to that, especially in real estate. But there’s a time to hold and a time to fold, and in my opinion, this is a time to fold.”

The condo mania of recent years also beset cities like Las Vegas, Phoenix and Washington, but while those markets are also full of resales, analysts say South Florida drew the most investors.

“Between the Latin American influence and the out-of-state buyers who have a love affair with Miami because of its ambience,” said Jack McCabe, a consultant in Deerfield Beach who tracks the South Florida housing market, “they flocked to it and pushed it to the point where about 70 percent of all sales were to investors.”

Real estate analysts say South Florida’s housing market peaked late in 2005, and would-be flippers stopped buying in 2006. People who bought condos before 2005 might still make money or at least break even if they sell soon, the analysts say, but those who bought at the height of the mania stand to lose a bundle.

Ann Nortmann, a sales associate with Majestic Properties, said one of her clients, a New Yorker, bought 11 condo units in Miami starting in 2004 and has sold six — the last at a $40,000 loss. Ms. Nortmann and others said that with the glut of properties for sale, it might be more prudent to lose a deposit than hold onto a condo indefinitely.

Many speculative condo buyers were foreigners, especially Latin Americans looking to shelter their wealth from precarious economies in their home countries. Mr. Schlesinger said he was trying to help some Colombian investors get out of contracts in a project on the Miami River, a hot area during the boom, where prices are now languishing.

Getting out of real estate contracts is hard, Mr. Schlesinger said, because under state law, buyers have to prove that developers “materially” changed a project in a way that is “adverse” to the buyer. Many buyers want soaring property insurance rates to fall into that category. But a new state law says they cannot.

“About half the time I have to tell people, ‘Listen, there’s nothing I can do,’ ” said Mr. Schlesinger, adding that 20 percent of his clients end up forfeiting deposits.

Gregg Covin, a developer building Ten Museum Park, a downtown high-rise overlooking Biscayne Bay, said that none of his buyers had lost down payments, but that 45 out of 200 had resold their units before closing, often at the same price they paid in 2003 and to so-called vulture investors looking to scoop up multiple units at pre-boom prices.

Like many other developers, Mr. Covin requires original buyers looking to resell to do so through an in-house program, and keeps a 6 percent commission. Because his is one of the first boom-time buildings to be finished, he said — closings are taking place this month — he has had no problem finding replacement buyers.

“Right now, today, there is no shortage of end-users in Miami for finished, nice product,” Mr. Covin said.

Still, the few new buildings that have opened report many units up for resale. In Blue, a downtown high-rise that opened last year, 87 of the 330 units, or 26 percent, are back on the market, according to the Multiple Listing Service. In One Miami, which also opened downtown last year, 155 of the 800 units, or 19 percent, are for sale.

“When you drive by in the daytime, they are gorgeous,” Mr. McCabe said. “But when you drive by at night, there’s no furniture on the patios and only one light on out of 10.”

This being South Florida, some are figuring out how to profit from the downturn.

Mark Zilbert, a real estate agent, recently started CondoSuperCenter.com, a clearinghouse for people willing to resell preconstruction units at their original price. He said he expected thousands of listings.

“I ask if they’d be willing to sell at their 2003 price and walk away with their deposit back,” Mr. Zilbert said. “A lot of people are saying, ‘Yes, please, yes, please, yes, please.’ ”

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
954-527-1512(South Florida Area)
1-877-527-1512 (Toll Free outside South Florida)
info@go2closing.com
http://www.go2closing.com

Real Estate Deposit Recovery information: Did you get your Deposit back?

You can't miss the flocks of cranes that hover over Miami's skyline. They were hatched by a condo fever that seized the city and fueled what is now the biggest construction boom in the country.
Not long ago the only thing going up faster than buildings in Miami was the prices -- and Lucy Blanco wanted in.
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"It was going up so rapidly that I was fearful that if it went any higher I could not afford it anymore," she said(REAL ESTATE CONDO DEPOSIT RECOVERY). "So I needed to get it while it was still at a price I could afford…before it went out of my range.
"If we don't hurry up and buy something now," she said, "we're never going to be able to buy anything."

In February 2006, Blanco bought a preconstruction one-bedroom unit in a condo community called Quantum on the Bay. She paid $465,000. Today, however, Blanco estimates the property is worth $100,000 less than what she agreed to pay.
The condo has lost more than the val(REAL ESTATE CONDO DEPOSIT RECOVERY)ue of Blanco's $93,000 deposit. And so, just as fast as Blanco wanted in, she now wants out. That's where Michael Schlesinger comes in.
'Can I Get Out?'
Schlesinger is at the forefront of a new subspecialty in Miami real estate law, that might be called condo extractors. He said he gets 20 or more calls a week from people like Blanco.
"They're all asking the same questions," he said. "Can I get out? Do I have a chance to get my deposit back? If not, what are my options?"
Schlesinger said he looks for a flaw in the condo contract -- a blocked view, a change of design, delayed construction -- anything about the new building that allows him to argue the developer isn't delivering on what was promised.
Schlesinger said he's got about 50 active cases today. He only takes on a few new cases a week -- the ones he thinks he can win.
"Most of the time, unfortunately, I have [to] say that the contracts are too tight," he said. "There's not much I can do, and the options are either you close or you leave your deposit on theUltimately, Schlesinger said, greed played a huge role in Miami's current situation.
"I think two years ago people wereaking hundreds of thousands of dollars doing exactly what they're asking me to get them out of today," he said.
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Blanco is convinced she's not getting the square footage she paid for. She's enlisted an architect to measure her floor plans.
"It's wrong," she said. "It's not what I purchased. I paid a lot of money for that. I want every square foot of it, because I paid for it. I'm entitled to it."
It's not clear that she's right and the lawyers for Quantum on the Bay have not responded to her case.
Lessons From Desperate Buyers
Steven Landy is a lawyer who represents other developers seeing a surge of similar cases from buyers desperate to get out of their contracts.
"I can't think of any other area of investing," said Landy, "whether it be investing in the stock market or putting your money on a particular horse…where if it doesn't go your way… you say, oops, it didn't work out, now I want my money back."
Blanco said she has learned "lots of lessons. Never put so much money in a preconstruction. I would never d(REAL ESTATE CONDO DEPOSIT RECOVERY)o that again," she said.
Miami has a long history of greed-fueled building booms and busts. This round is a not a lot different. It is the logical endgame in a market fueled by speculators selling to other speculators. Inevitably, the market would run out of speculators.
The situation in Miami is also a classic case of oversupply. From 1995-2005, 10,000 new condo units were built in Miami, and in the next two years another 20,000 units will be completed.
'Learn to Take Some Hits'
Retired businessman Tom Leon knows a bad deal when he sees it. He bought two condo units two years ago for $500,000 each, hoping to flip them for quick profit.
Today, as the buildings near completion, Leon is certain he couldn't he even get $400,000 for each of the units -- so he's decided to cut his losses and walk away from $200,000 in deposits rather than pay the $800,000 balance he now thinks is a bad investment.
"Listen, you can be the richest guy in the world. Nobody wants to lose a hundred grand," he said. "But in business you(REAL ESTATE CONDO DEPOSIT RECOVERY)'ve got to learn to take some hits. I've made a lot of money so once in a while you've got to be smart enough…to leave when the time is right and I think now is the time."
When those cranes arrived in Miami, it seemed they were constructing towers of gold. But as more and more buildings approach completion and the cranes begin to disappear from their perches it becomes clear that for many it was a fool's gold.