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.

A partial deposit loss may be a better solution than closing well above current market value on Condo investments.

Did you utilize the services of a Florida Real Estate Attorney prior to signing a contract with a Florida Real Estate Developer? Did your Realtor or Mortgage Broker say "In South Florida you don't need to hire an Attorney". Chances are you heard those exact words.
As we enter what many economists and real estate experts are calling a Real Estate depression throughout Florida, we are urging people to learn the rights which the law provides in protecting individual and corporate pre-construction condominium buyers prior to closing on a property. The Real Estate Lawyers working at Deposit Recovery Services are focused on educating consumers as to the rights they have regarding Real Estate contract rescissions and deposit recovery. We are experienced in negotiating contract rescissions with the majority of condominium developers in the Florida market. You may have the opportunity to rescind your contract prior to closing, often resulting in recovering all or some of your deposit. In most cases even a partial deposit recovery, although uncomfortable, is a more sound decision than closing on a property which may be worth tens of thousands of dollars less in the current market than the price you are paying at closing on your property. We are not accountants, but it is our understanding that some of your deposit loss may be tax deductible, lessening the financial blow (Be sure to check with your tax accountant or CPA). Please contact us if you are currently in a dispute with a real estate developer in Florida and New York. We offer a free consultation with a licensed real estate attorney. In the vast majority of cases a settlement or rescission can be completed without the need of bringing a lawsuit against the developer.
Please call or email Deposit Recovery Services today. The more time we have to work on your behalf prior to your scheduled closing date, the more the likely we can reach an amicable agreement between condo buyer and real estate developer.
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Florida Developers scale back as the real estate recession takes a turn for the worse.
Does a full blown Real Estate depression loom? (CBS4 link to article)

MIAMI (CBS4) ― A new study shows developers in South Florida's real estate market are slowing down with projects in what economists are calling a housing depression.

New-home construction is at a ten-year low.

In all of this, however, there could be promising news for some sellers, but not very good news for people who work in the construction industry.

To explain what's happening, for example, picture a glass filled with water representing the current real estate market. It's filled to the maximum, in our case, filled with properties. Filling it up with more water, or projects will only cause an overflow.

But if developers pull back, slow down, then there might be some impetus by consumers to start buying those empty units that have come down in price, absorbing - like a towel - some of the overflow. In other words, the inventory on the market could start to be bought.

Just beyond the 55th Street Station in Miami, off Biscayne Boulevard, there is a building site for a project called Kubik, 315 ultra-hip condos overlooking Biscayne Bay. It was a project so attractive, the developer sold half the building.

That was three and a half years ago. Now, on the empty lot is a building crane, beginning to show signs of rust.

A neighborhood lawsuit brought the project to a halt.

"Oddly enough we were thinking of not moving forward with Kubik anyway because of the market," said developer Paul Murphy. "You know, sales came to a dead halt."

Murphy pulled the plug on his project and handed back deposits to investors.

This move is not unlike other developers who have slowed or even stopped building.

Banks have been taking on record loses from foreclosures, and have begun putting the squeeze on developers.

"The financing is tough to get," said Murphy. "You have to have qualified buyers and the banks are requiring people to put significantly more money down on their units."

According to Metrostudy, a group that tracks the housing industry, the financing crunch has had an effect on the South Florida market.

In Miami-Dade, more people are moving into new homes than developers are building.

In Broward, things appear more stable though the numbers are the lowest in 10 years.

According to Murphy, it could last two to three years. Until then, less construction hopefully would balance out the market, and developers would learn if another building cycle is possible.

In the meantime, it may be good news for some sellers, it's not so great if you are in the construction industry. Less new starts means less work, and less work means less jobs.
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Protect your money in escrow

The sudden closures of escrow businesses, which cut off buyers and Realtors from millions of dollars in deposits, have home buyers wondering just how they can keep their deposits in escrow safe

By CHARLES J. KOVALESKI, Special to the Daily News

Saturday, November 24, 2007

When most of us buy homes, we don’t usually question whether our funds are safe in escrow, the intermediary step in which home buyers place a good faith deposit with a third-party agent who will deliver this money to a seller when all terms of a real estate contract have been fulfilled. After all, the very idea of escrow is to keep our funds safe—buyers show their intentions to purchase a property, but don’t have to give up funds until a real estate deal closes to all parties’ satisfaction. But the sudden, recent closures of escrow businesses, which cut off buyers and Realtors from collective deposits estimated to total millions of dollars, have home buyers wondering just how they can keep their deposits in escrow safe.

As it currently stands, anyone in Florida can open an escrow service company, and, unfortunately, there are no formal regulations in place to provide oversight and help reduce these types of situations from happening again in the future. Investigations into these type of situations may ultimately prompt legislators to close the regulatory loophole that allows escrow companies to operate unchecked, but until then, buyers should beware — and be educated. Here are some steps that you can take now to keep your money safe in escrow.

Connect your deposit to your title insurance. Then get a letter of protection. When you buy a home, either the buyer or the seller will provide the purchased title insurance to insure the property’s title against any existing defects, such as liens that may have been placed against the property by contractors, banks or others. This form of title insurance typically comes from one of two sources: a real estate attorney or a title company.

You should place your escrow money into the trust account of either the attorney who is writing your title insurance policy, or the title company that is issuing this insurance policy, regardless whether the buyer or the seller is paying for the title insurance. Why? For two main reasons. First of all, regulatory bodies make these safer places to put your money; the Florida Bar Association strictly regulates how attorneys manage their trust accounts and the Florida Department of Banking and Financing oversees how title companies handle their accounts. On the other hand, escrow companies have no overarching authority that regulates how they handle their funds.

Second, Florida statute requires that title insurance underwriters repay your deposit if the unthinkable happens, such as an employee of a title company or a law firm steals or commits fraud. When you place your money into one of these trust accounts, ask your title insurance agent to get a “letter of protection” from your title insurance underwriter. This shows in writing that the title insurance company is responsible for returning your deposit in full in the event that fraud or other matters threaten to sever you from your money.

Place funds in your own real estate attorney’s trust account. Depositing your money into your real estate attorney’s trust account is a safe option. If attorneys mismanage trust accounts, they will be disbarred and prohibited from practicing law — an often powerful incentive for attorneys to keep your money safe. Plus, there are remedies for you to get missing money back through the bar association.

Ask about theft protection. Even though attorneys’ trust accounts are safe places to put money, they too can be subject to occasional human error. Ask your attorney about whether they have insurance that will protect your money in the event of an accounting mistake or even employee theft. He or she will be able to show you a certificate of insurance coverage so you know that your deposit is protected.

Be cautious when considering an escrow service. With little regulation in this business segment, consumers should think about putting their deposits in safer places. If you’re not sure whether a company is an escrow service, ask a staff member what guarantee they can offer that your deposit is safe and what regulatory body governs how they handle escrow funds. If they don’t offer clear answers, don’t bank on them. If you’re not sure about whether a company is an escrow service, contact your real estate attorney for assistance.

Do your homework. There are several online resources available to assist you with conducting a background check. One place to start is calling the Better Business Bureau or going online at www.us.bbb.org to find information on a company. Another helpful search engine is the Florida Department of Financial Services, www.fldfs.com, which can help you obtain specific details about a title company. For additional information on an attorney, visit the Florida Bar Association at www.floridabar.org.

While it’s not always easy to guard against fraud, there are some general tenets for protecting your money: Get proof that governing bodies oversee the institutions that hold your money and when in doubt, ask your real estate attorney for additional guidance.

Condominium and Preconstruction Real Estate lawsuits against developers are the last resort,
contact us to learn your rights and the options you may have.

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.

Finding a Florida Real Estate Attorney for Condo contract rescission and Deposit Recovery

In an attempt to help perspective clients find Deposit Recovery Services, we have listed (below) some of the most popular search terms our past clients have used to find our firm. Our firm is owned and operated by New York and Florida licensed Real Estate Attorneys. We are a full service Real Estate Law Firm with offices throughout New York and Florida. Recently we have begun to put a tremendous focus on working to protect Pre-Construction Condominium Investors in disputes with developers throughout both states in which we practice.
Deposit Recovery Services has been created exclusively for individuals who have found themselves in condominium contract disputes. We have a very successful record of not only helping our clients to have their real estate contract rescinded prior to closing, but in almost every case we have gotten back some or all of the original deposit placed at contract signing.
Although the number of perspective clients contacting us has exploded in recent months, we take a very select number of files. This ensures our clients get the special treatment they deserve, we urge you to contact us for a FREE consultation as soon as possible. The more time we have to work with you prior to your scheduled closing date the greater our odds for success in your preconstruction or condominium contract dispute. Florida Developers are working with powerful lobbyists in Tallahassee to have contract laws changed to further favor developers. Many of which are now panicked as they have sold many units under the guise of "You'll never have to close", "we will help you flip the condo unit", and "all of our units are being resold prior to closing for huge profits". Did you here any of these claims from your developer, realtor, or mortgage broker?
Call or e-mail Deposit Recovery services today for a free consultation, remember almost all of our cases are handled on a contingency basis. Meaning that if we can not recover some or all of your deposit, we don't get paid. That's how confident we are that we can help you in your contract dispute.
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Florida Condo and Pre-Construction developer lawsuits
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First American shut down 84 Florida Real Estate Limited Partnerships

The U.S. Department of Housing and Urban Development and two Florida regulators today announced a legal settlement with First American Title Insurance Company for alleged violations of the Real Estate Settlement Procedures Act (RESPA) and similar state laws. HUD, the Florida Department of Financial Services (DFS), and the Florida Office of Insurance Regulation (OIR) claim First American made payments to scores of affiliated partnerships based on the referral of business to the title company.

Under the terms of the settlement agreement announced today, First American will shut down 84 partnerships and pay $5 million to the U.S. government and the State of Florida.

"Closing 84 affiliated partnerships and negotiating this significant monetary settlement is an outstanding example of ongoing cooperation between state regulators and HUD to enforce RESPA," said Brian Montgomery, HUD's Assistant Secretary for Housing and FHA Commissioner. "Our joint investigation found these partnerships were created to generate referrals in violation of RESPA and HUD's policies against sham affiliated business arrangements."

The investigation found that over a number of years, First American formed or acquired limited partnerships in the State of Florida to act as title insurance agencies. While these partnerships were created as title insurance agencies, the joint investigation concluded that all regular title services were performed by First American. HUD, DFS and OIR claim the partnerships acted only as "pass throughs" to pay real estate agents, Mortgage Brokers, builders and other limited partners for referring business to First American.

Section 8 of RESPA prohibits a person from giving or accepting anything of value in exchange for the referral of settlement service business. It also prohibits a person from giving or accepting any part of a charge for services that are not performed.

First American further agreed that any future affiliated title company operating in Florida will:

• Employ individuals who are licensed and experienced in the title industry and will provide core title services through its own employees;
  
  
• Have operating capital and net worth comparable to independent title agencies in the market area in which it operates;
  
  
• Hire employees who will work exclusively for it and who will not be compensated, employed or managed by any affiliated real estate agent, mortgage broker, title insurance company or homebuilder;
  
  
• Actively compete in the marketplace for Title Insurance business and actively market its services and seek title business from persons other than the agency's owners and persons associated with First American, and;
  
  
• Comply with RESPA, HUD policy statements, and relevant state law.

To read the settlement agreement announced today, visit HUD's website.

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Are you looking for services other than Condominium contract rescissions and Deposit Recovery?

We are the attorneys from GO2Closing.com - A Full Service New York and Florida Real Estate Law Firm

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Home buyers suffer when builders flop

Homeowners are faced with lengthy delays, liens and worthless warranties

Wall Street Journal Link for Florida Real Estate Article from MurtleBeachOnline.com

The tumbling housing market is claiming a new class of victim: customers of insolvent home builders.

In the latest sign of trouble, Ft. Lauderdale, Fla.-based Levitt & Sons, a unit of Levitt Corp., filed for Chapter 11 bankruptcy protection Nov. 9, citing the "sudden and steep" downturn in the Florida housing market. Levitt's move follows bankruptcy filings by a number of local and regional builders, including Neumann Homes Inc. in Illinois, Elliott Building Group in Pennsylvania, Turner-Dunn Homes Inc. in Arizona and Kara Homes Inc. in New Jersey. Many other builders simply close up shop.

And the situation is likely to worsen in the first half of next year, says Ivy Zelman, an independent housing analyst. "We're in the first or second inning," Zelman says. "There are going to be a significant number of insolvent builders."

Problems galore

What a builder's troubles mean for its customers can vary, depending on factors such as state law, contract terms and how long it takes to get the project back on track. In some cases, buyers may lose all or part of their deposit or wait a year or more for their house to be completed or the builder's financial troubles to be sorted out.

Homeowners who've already moved into a new development can find themselves living near a half-finished house where work has been halted. They also face other questions, such as who will handle needed repairs, what will happen to a promised swimming pool and whether contractors have put liens on their properties - which could block access to financing. In some cases, local communities have stepped in to fix unfinished roads or pick up overflowing Dumpsters. Florida Real Estate Attorney - Condo contract rescission

Jeff Benes and Maggie Byrne paid $269,000 for a four-bedroom Neumann home in Antioch, Ill., in 2003. Now they are wondering what the company's bankruptcy filing will mean for property values - not to mention who will plow the development's unfinished streets this winter and when the promised clubhouse, pool and volleyball courts will be completed. "We're all up in the air now not knowing what is going to happen," says Byrne.

Builders hit hard

As the housing market has slumped, builders have struggled with rising inventories, falling home prices and cancellation rates that have topped 40 percent in some markets. Land prices have also dropped, leaving builders owing more for some parcels than those properties are now worth. Banks, meanwhile, are tightening their standards - not only for home buyers, but for the builders as well. IndyMac Bancorp Inc., which lends to small and midsize builders, said earlier this month that it expected 30 percent of its home-builder loans to be delinquent by the fourth quarter. The company says that it stopped making new construction loans to builders in August. Can I be forced to close on my real estate contract?

During the early 1990s housing downturn, some 15 percent of home builders went out of business, according to the National Association of Home Builders. The number of bankruptcy filings was very small, says NAHB research director Gopal Ahluwalia. Most troubled builders simply shut their doors or moved into other ventures.

Often, builders' problems are evident long before any public filing. Before Kara Homes filed for Chapter 11 bankruptcy a year ago, construction crews at its Horizons at Birch Hills development in Old Bridge, N.J., began disappearing, and vendors who had worked on the development were replaced by others who seemed less experienced, says homeowners' association president Frank Ramsom. Kara employees also "started to neglect meetings" and provided "cryptic" answers to homeowners' questions, he says.

Perry M. Mandarino, who was brought in to serve as the chief restructuring officer for Kara Homes, advises people buying a new home to "drive past it every few days or every week, not just on a Saturday," to check on construction. "The warning signs are real obvious," he says. "There's a lot of construction, and all of a sudden it stops. There's inclement weather and they are not boarding up the property." Can I cancel my real estate contract on a preconstruction?
CDeposits all gone

For buyers who are under contract, the biggest risk is that they will lose their deposit. Some states, such as California, require that homeowner deposits be held in escrow or that the builder post a bond. But in other cases, the builder may be able to tap the money, which may make it harder to recover.

When Turner-Dunn filed for Chapter 11 protection last year, more than 150 homeowners had outstanding deposits ranging from $2,500 to nearly $28,000, according to bankruptcy filings. Turner-Dunn had disclosed in a public report given to buyers that deposits would be used to fund construction and were not being held in escrow, says Mary Utley, a spokeswoman for the Arizona Department of Real Estate.

It's not yet clear how much of that money will be returned. Dan Collins, an attorney for the bankruptcy trustee, says the outcome will depend on future litigation. Under federal bankruptcy law, homeowner deposits take priority over certain other unsecured claims, but only amounts up to $2,225 are covered.

One home buyer, Brett Angner, put down about $26,000 on a Turner-Dunn home he was purchasing as an investment. He calls his chances of getting his money back "minimal."

Frontier Homes Inc., an Ontario, Calif., builder that bought Turner-Dunn's assets, offered buyers the chance to complete their purchases without an additional deposit. "But it would have been imprudent of us as businessmen to say, 'Here's your money back,'" says Frontier senior vice president Michael Dwight.

Buyers who still want to move into their homes can find themselves living in limbo. One couple waited three years for their $1 million Kara home to be completed. "This woman and her husband had twins," says Mandarino. "They had to live with a relative."

Another issue: Who will handle the inevitable problems that come with new construction? Builders often provide third-party warranties, but Neumann Homes told buyers it would cover defects that appeared in the first year itself. Homeowners are concerned that the company won't honor that warranty, says Dennis Crosby, a trustee for Antioch, Ill.

Residents are grappling with other uncertainties. Each year, Neumann has installed a ice-skating rink in its Antioch development. But some residents aren't sure they want to pick up the roughly $8,000 tab this year - or if they have the authority to stop it, says Crosby, who owns a Neumann home. Village officials say they expect any developer who takes over the project to complete the clubhouse, swimming pool, parks and other promised amenities.

Ken Neumann, the company's chief executive, says that "it's likely that the one-year builder warranty will lapse," but adds that structural and major mechanical defects are covered by a 10-year third-party warranty. Neumann says money has been set aside in escrow to cover the cost of uncompleted amenities. Neumann Homes is working with its lenders to get homes under construction completed, he says.

Perks disappear

For homeowners, promised amenities can sometimes seem like pipe dreams. At Levitt & Son's Seasons at Prince Creek West in Murrells Inlet, a gated community for residents 55 and older, a 25,000-square-foot community center - with tennis courts, indoor and outdoor pools, computer rooms, bocce court, an arts and crafts room and health club - is only partly completed.

"We were told that if it wasn't protected [from the elements] within 30 days, whoever picked up the project might have to knock it down and start all over again," says Charles Brindley, a retired graphic artist, who closed on a $375,000, 2,124-square-foot home in the community in July.

Many builders, including Levitt, have also stopped paying their vendors. Those vendors, in turn, have placed liens on the homes of people living in the communities. Some Levitt homeowners have as many as 20 different liens on their home, according to an executive at one of Levitt's Georgia divisions. Such liens mean that the owner can't refinance, get a home-equity loan or sell the home. Other Levitt home buyers can't close on their properties because the builder hasn't been able to sign a sworn statement that it has paid off all subcontractors and suppliers.

Paul Singerman, lead bankruptcy counsel to Levitt, says that since the filing, the builder "is already trying to ameliorate a number of legitimate concerns." Those include asking the court to allow it to resume home sales, returning deposits posted after Aug. 29 to certain customers and filing claims for the vendor liens so payments can be arranged.

In addition, Singerman adds, under the supervision of the bankruptcy court, Levitt will attempt to move ahead with a plan to either finish substantially completed homes or sell partially completed developments to another developer or investor. Levitt has about 30 developments, none of which is finished, Singerman says.

Outside assistance

In some cases, homeowners and local governments have stepped in to pick up some of the pieces. After Kara Homes filed for bankruptcy, residents of Horizons at Birch Hill hired an attorney to represent them in the bankruptcy case and a maintenance man to fix common problems.

To keep the stalled project from turning into a health and safety hazard, the town of Old Bridge, N.J., pulled out 40-foot Dumpsters that had been left on the property, sent in police for regular patrols and fenced in a hole that had been dug for a swimming pool.

For some homeowners, the good news comes with the arrival of a new developer. Kara Homes' Horizons at Woodlake Greens development in Lakewood, N.J., was bought by Maplewood Home Builders in September.

The new builder says it is now working to fulfill its promise to complete the clubhouse in time for Christmas and have the swimming pool ready by spring.

Since Maplewood took over, "the tempo here has been terrific," says Jim Lithgow, who bought a Kara home two years ago and is president of the homeowners' association. "It's a story of anguish and passion. But now we've turned the corner."

How do potential clients find Deposit Recovery Services?

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Call or E-mail for a free consultation on the options you have in your Condo contract dispute.

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.

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.

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.

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.

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.

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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Miami, Florida condo and preconstruction contract attorney

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condo contract rescission,condo contract rescission,condo contract rescission


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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.

Miami Real Estate Lawyer

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)


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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 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.

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
http://www.rupee.us/blog
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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.
We may be able to help, Please call us for a free consultation.

Florida Deposit Recovery Services Press Release - Condo, Preconstruction Contract validity

For_Immediate_Release:

United States of America (Press Release) September 4, 2007 -- Sept. 4, Miami - All the talk in the Real Estate market, particularly in Miami, has quickly swung from buy everything in sight to how do I get out of this deal. There is no question that the real estate boom has come to a close and many corporations, investors, and speculators have found themselves in Condo and preconstruction deals that are "underwater".
The Law Offices of Eric L. Bronfeld, PA. are proud to announce the introduction of Deposit Recovery Services and www.depositrecoveryservices.com. Mr. Bronfeld says "This new extension of our real estate practice will be better organized to serve clients who question the validity of preconstruction and condo contracts which they are currently involved in", "we have found in many cases, the language of these contracts have opportunities to render them void, allowing for deposit monies to be returned".
Recently spoken about in the Sun Sentinel (South Florida's second highest distributed newspaper), Realtor Barry Beschel, PA. of Aventura, Florida is quoted as saying " Mr. Bronfelds' offices served my clients well in the real estate bull market, we are sure to not only recommend Deposit Recovery Services to our clients, but to use them in some personal matters as well"
In many instances deposits may be lost, but the deal is still rendered void, allowing investors to move on to new deals.
We strongly urge anyone who is currently tied to a contract in which they feel they may have some legal remedy to contact a licensed Florida Real Estate attorney to be sure your rights are being protected.
For more information please visit us at:
www.DepositRecoveryServices.com
or
info@go2closing.com

Free Press Release


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

The Miami Condo crash. Deposit Recovery Services can help.

The champagne-popping days are over for Natalie and David Luongo, who banked enough money flipping a South Florida condo three years ago to stage a $100,000 wedding.Now the couple are spending restless nights wrestling with the question that looms like a guillotine: Should they walk away from the $117,000 deposit they plunked down on another investment condo in the ritzy Miami-Dade enclave of Bal Harbour?Or should they close on the one-bedroom unit, which is similar to others now on the market for less than the $585,000 they agreed to pay?
"It's painful and scary," Natalie Luongo, 31, said. "We saw the frenzy, and we bought in. Now we're paying the consequences."Just how many other speculators face the same dilemma in the nation's most glutted condo market will become clear during the next two years. That is when 25,000 new condo units, most of them rising in or near Miami's downtown, will flood an area already saturated with 23,000 condos listed for sale. An additional 40,000 units have been approved, but analysts doubt the majority will break ground.Orlando and other Florida cities -- Naples, Fort Myers, Tampa and Sarasota among them -- also have huge condo gluts. With 4,440 condos listed for sale, Orlando has an unprecedented 29-month supply, and last month sales plummeted 64 percent lower than a year ago.But Miami, with its unmatched volume and untold number of speculative buyers, is ripe for the hardest fall in the U.S."Miami is the poster child for the condo bust," said Jack McCabe, CEO of McCabe Research & Consulting, a real-estate market-analysis firm located in Deerfield Beach. "There are probably only two cities in the world with more construction: Shanghai and Dubai. Unfortunately, there is going to be a lot of foreclosures . . ., and developers, lenders, title companies and real-estate companies will go under."Many analysts, McCabe among them, predict the area's condo collapse will drag the rest of the state into recession. Other experts scoff at that notion. But nearly all agree grim times lie ahead.Usually joyous milestones, closings in Miami are about to become somber days of reckoning for electricians, waiters, retirees and other amateur speculators who counted on making a quick killing in a market they thought would rise forever.No one knows how many units speculators bought. But as early as 2004, McCabe and Lew Goodkin of Miami-based Goodkin Consulting warned that up to 70 percent of the condos rising in Miami were being snapped up by people who didn't plan to hold on to them, much less live in them.That was evident from the hordes who camped overnight, fought over lottery numbers, even paid homeless men $20 and a pack of cigarettes to hold their places in long lines, all for the chance to put 20 percent deposits on condos that existed only in brochures. The frenzy for some projects was so fevered that some developers raised their prices hourly."It was a nightmare. Lines around the corner. People screaming into phones. I would look at them, and think, 'You don't know what you're doing,' " said Mark Zilbert, president of Zilbert Realty Group.Many told a similar story: They had a friend who made $100,000 flipping a new condo, and they planned to ride the same wave of escalating prices. All they had to do was put down $60,000 on a $300,000 pre-construction unit and resell it when the value climbed to $400,000 -- before the building opened, and before closing and mortgage payments, maintenance fees, insurance and taxes kicked in.That meant anyone could risk $60,000 and pocket $100,000 without actually buying anything.Some investors were experienced players like Barry Beschel of Aventura. After the dot-com stock-market crash in 2000, he said he had no trouble persuading his buddies to park their money in Miami's sizzling condo market."All my guys in New York were like, 'Yeah, flipping condos in Miami.' It was a sexy commodity, and it was fun to make money," Beschel said.It was also easy. Beschel, 50, said his group followed well-known developers such as The Related Group's Jorge Perez to their next project. The king of Florida's condo market, Perez has built or manages more than 55,000 units in the state and is building at least nine new towers in Miami as well as a 441-unit, luxury condo hotel in Celebration.From 2001 to 2005, Beschel said his group bought about 50 pre-construction condos, sometimes 10 or 12 at a time. They would pay about $300 a square foot and, once the building sold out, return the condos to the developer, who would resell them at $350 a square foot. The difference between the original contract price and the new one -- $100,000 on a 2,000-square-foot unit -- would go to Beschel's group, minus a commission."The developer would take his commission, and we'd take our profit and everybody was happy. When the market was cranking, it was a brilliant business model," Beschel said.
DepositRecoveryServices.com can work to help recover lost deposits and protect individuals who have bad been sucked in by the allure of "easy money" in the condo preconstruction boom in South Florida and around the country.
But beginning in 2006, Goodkin said, it became clear the market was saturated. Speculators, at least the wise ones, had fled. Buyers stopped walking through the sales-office door. Some developers halted resale programs to concentrate on their own inventory.And whoever held a contract was stuck -- with prices at their peak. Now, foreclosure filings are up by 30 percent in greater Miami over last year.For Beschel, whose group still holds contracts on two condos with falling values and looming closing dates, financial ruin isn't a worry. He figures his group made "a few million dollars," so walking away from two $100,000 deposits is no big deal.But for untold others, such as the Luongos, losses could be devastating. Owners of a gourmet shop, the transplanted New Yorkers poured their life savings into deposits on four condos they had planned to flip for a quick profit.The plan worked for a one-bedroom condo conversion at The Residence in Hollywood. They agreed to buy it in 2004 for $207,000 and sold it before closing for $330,000.But they were forced to close on a condo in Boynton Beach, where they now live, and they face the prospect of losing nearly $200,000 they put down on two condo conversions at the Harbour House in north Miami-Dade County. One is a $350,900 studio, which Natalie Luongo said is smaller and in a different location than the one she agreed to buy in December 2005. It is the subject of litigation.The other is a $585,000 one-bedroom unit similar to others now available for about 25 percent less. As the September closing looms, the Luongos are distraught. If they can't secure another mortgage, the decision will be made for them. They will have to walk away from their $117,000 deposit.But if they secure financing, they know they will be stuck with a property that could be as difficult to rent as it is to sell.Gregg and Mary Mullins, 70-year-old retirees living near Fort Myers, learned that the hard way.Last month, they finally rented out the two-story $885,500 penthouse they closed on last year in Blue, a concave tower overlooking Biscayne Bay. But the $2,800-a-month rent they're collecting is less than half their monthly mortgage payment, maintenance fees and property taxes. Yet, as Mary Mullins said, something is better than nothing.The couple never planned to live in the condo, but jumped at buying it at pre-construction prices in 2004 after friends shared a familiar story."They said they made lots of money, so they told us to try it and maybe we could make lots of money, too," Mary Mullins said. "But that didn't happen. We don't know what happened."A sheepish Tom Leon says he knows. deposit recovery sevrvices .com, Broward and Miami-Dade county florida. Condo and preconstruction deposits.The retired businessman from Illinois said he knew he had made a mistake about six months after he put down $200,000 on two $500,000 condos at the end of 2004."Every 2 inches, I'd see another [construction] crane, and I knew: There is no market that can absorb these many units," said Leon, 72. "It doesn't take a rocket scientist to say, 'Gee, who's going to live in all these buildings?' "


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/
http://www.rupee.us

Questions? - Florida law regarding preconstruction condo deposits.

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

Do you have questions regarding the return of your preconstruction condo deposit?

Please contact How does Florida law protect the purchaser of a preconstruction condo?

In Florida, purchasers have a fifteen (15) day rescission period starting with their receipt of the Public Offering Statement, which includes the condominium documents, association by-laws, preconstruction purchase contract and escrow agreement; to review and complete or rescind any condominium purchase and escrow agreement and receive a full refund of their deposit if they rescind.

The most important protection under Florida law is that your deposit is held in an escrow account. These funds will be not released until the closing of your unit unless the developer designates a portion of the deposits may be used for construction in the contract.

Why are preconstruction sales necessary?

Most developers are required by their lenders to pre-sell a certain percentage of their projects before the bank or lender will lend them the funds for construction. This is the risk (and the opportunity) when buying a preconstruction condo unit. If for some reason the developer decides not to build the project then your deposit money has not been appreciating. Preselling condos has become a standard practice. Once the required presale percentages have been reached and construction has begun, your risk is greatly reduced.

Why buy a preconstruction unit when I can buy one that is available now?

By purchasing at pre-sale you are able to leverage your down payment and control 100% of an appreciating asset with a small (20%) investment. Many people have purchased preconstruction condos and have sold their units for a profit even before the building is completed.

On what floor and what size unit should I buy?

If you are expecting to close and live in the residence then you should select the view and floor height that will appreciate most over time as well as one that you will enjoy living in. The higher floor with unobstructed views are the best.

If, however, you plan to lease the condo to a tenant, you will want one that appeals to the greatest number of potential tenants. This can also depend on the area your purchase is located. If you are in an urban environment, a one bedroom for single tenants may be best; in a resort area, a condo-hotel unit with a management program may work for you. In a suburban neighborhood, two bedrooms are often better because they attract couples without children, single parents with a child or singles with a roommate.

If you plan to sell your condo purchase for a profit as quickly as possible then the least expensive unit on the lowest floor (typically studios and one bedrooms) have shown the highest percentage of return based on previous condominium resales.

What are the required deposits for preconstruction condos?

With most preconstruction condos you will be required to deposit twenty (20) percent by the time the developer "breaks ground". Typically, there is an initial reservation fee, then the remainder of the first ten(10)percent at the time of contract. The final ten (10) percent is required when the developer breaks ground.

Can I sell my preconstruction purchase before it's completed?

You must have written permission from the developer.

1. You may sell your right to the condominium unit by transferring or assigning the contract to a subsequent purchaser.
2. You may sell your unit under a real estate contract upon completion of the condominium. Two real estate closings will occur simultaneously, your purchase, and the sale to your buyer.

Who may resell my condo?

You have two options in most cases:

1. The developer may resell the unit for you.
2. Your REALTOR® may find a buyer for you.

In either case there will be a real estate commission but this choice is solely up to you.
Miami - Broward - Florida - Condo security deposit recovery - real estate attorney - law
What are the advantages of having a relationship with a REALTOR® when purchasing preconstruction condos?

A professional REALTOR® will:

* Alert you about new preconstruction projects before they are made public
* Help you compare the pricing in similar buildings in the neighborhood
* Inform you about community infrastructure developments such as service retail and civic investment that may effect the future value of your property
* Help you negotiate the terms of the contract and advise you on alternative choices that may meet your needs
* Share information regarding the relative financial strength and track record of a developer with you.

How does Florida law protect the purchaser of a preconstruction condo?

In Florida, purchasers have a fifteen (15) day rescission period starting with their receipt of the Public Offering Statement, which includes the condominium documents, association by-laws, preconstruction purchase contract and escrow agreement; to review and complete or rescind any condominium purchase and escrow agreement and receive a full refund of their deposit if they rescind.

The most important protection under Florida law is that your deposit is held in an escrow account. These funds will be not released until the closing of your unit unless the developer designates a portion of the deposits may be used for construction in the contract.

Why are preconstruction sales necessary?

Most developers are required by their lenders to pre-sell a certain percentage of their projects before the bank or lender will lend them the funds for construction. This is the risk (and the opportunity) when buying a preconstruction condo unit. If for some reason the developer decides not to build the project then your deposit money has not been appreciating. Preselling condos has become a standard practice. Once the required presale percentages have been reached and construction has begun, your risk is greatly reduced.

Why buy a preconstruction unit when I can buy one that is available now?

By purchasing at pre-sale you are able to leverage your down payment and control 100% of an appreciating asset with a small (20%) investment. Many people have purchased preconstruction condos and have sold their units for a profit even before the building is completed.

Recommendations for real estate deposit / "down payment"

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

After you have come up with an offer price, the next step is to determine how large a deposit you want to make with your offer. You want the "earnest money deposit" to be large enough to show the seller you are serious, but not so large you are placing significant funds at risk.

One recommendation is to make sure your deposit is less than two percent of your offered price. The reason for this is that if your deposit is larger than that, the lender will pay particular attention to how you came up with the funds. You might have to provide a copy of a canceled check along with a bank statement showing you had the money to begin with. Normally, this is not a problem, but if you have a short escrow period or are barely coming up with your down payment, it could pose an inconvenience.

Another reason to limit your deposit is "just in case." Although significant problems are the exception and not the rule, they do occur. "Just in case" there is a nasty or prolonged dispute between you and the seller, the less money you have tied up in a deposit, the fewer funds you have placed at risk.

Real Estate Deposit Recovery Services and Law

As with practically everything in real estate, there are exceptions to this rule, too. During a hot market there may be multiple offers on the property that interests you. A large deposit may impress a seller enough so they will accept your offer instead of someone else’s, even when your unknown competitor is offering the same price or slightly higher.

Since large deposits do impress sellers, you may also find that by making a large deposit you can convince the seller to accept a lower offer. More money up front may save you money later.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Fl. 33335
1-877-527-1512
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.