Florida Condominium Real Estate Contract Lawsuits Pre-construction and ILSA Precedent

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/


The Real Estate Attorneys at Deposit Recovery Services concentrate and are experienced in New and Preconstruction Law and are working hard to achieve productive relationships between Purchasers and Developers. Attorneys from Deposit Recovery Services have been successful resolving Contract Disputes between our clients and well funded Real Estate Development companies like those mentioned in a recent New York Times article.


Following are excerpts from a recent article regarding some Florida Condominium cases. The article is from the Daily Business Review , January 17, 2008 edition and was written by Polyana da Costa .

"Is there a way out? That's a question many buyers under contract to purchase condominium units in South Florida asked their attorneys as closing time approached."

"In an overwhelming number of cases, attorneys said yes to their clients and filed suits against the developers, but now the question is — will that work? "

"Few court orders — that might serve as precedent to other cases after the appeal process — have come out since a wave of lawsuits alleging breach of contract for many different reasons were filed.Out of three recent judgments in Florida, one favored the developer and two others favored the buyers:"

"• D&T Properties v. Marina Grande Associates Ltd. — Palm Beach Circuit Judge Jonathan Gerber issued a final judgment after a nonjury trial in July stating the buyer was not entitled to cancel the contract based on an increase in condo assessments because the buyer could afford the increases. The case is being appealed in the 4th District Court of Appeal."

"• Pugliese v. Pukka Development — U.S. Magistrate Judge Frank Lynch Jr. issued a summary judgment in October that found the buyer was entitled to be refunded the deposit because the project was not exempt from the federal Interstate Land Sales Full Disclosure Act. "

"• Meridian Ventures LLC v. One North Ocean LLC — U.S. District Court Judge Daniel T.K. Hurley in December issued a summary judgment favoring the buyer in a similar case. Projects with fewer than 100 units were believed to be exempt from the federal act. The federal court found the two projects were exempt from some but not all provisions in the act. "

"The two cases favoring buyers also are being appealed and have raised concerns among some attorneys and developers."

An attorney who represents developers, wrote on a Web site in October "that the Pukka case was significant and was being aggressively appealed."
"If the Pukka order is upheld by the federal appeals court, it likely will have a significant impact on the ability to enforce contracts presently utilizing the One Hundred Lot exemption," said the attorney. The developer attorney went on to explain in an interview "Pukka decision was contrary to existing Florida case law and the opinion of the director of the Department of Housing and Urban Development." The attorney's law firm has won many summary judgment hearings and motions on behalf of developers.

According to the article from the Daily Business Review , January 17, 2008 edition, "Although the cases being decided will help shape future decisions, it's too early to tell the outcome of hundreds of other lawsuits."

The Daily Business Review continued on to explain that according to a partner with a Miami law firm. "Most likely, buyers will have a difficult time trying to win condo cases." The law partner explained, "Most contracts are very one-sided contracts, They were written for developers and are there to protect developers. While some buildings may have special circumstances, in general it is very difficult to litigate this issue." The partner has "received several phone calls from buyers wanting out of their contracts, but in most instances he does not take the case" The partner explained, "I don't want to take a case and make them pay if I know they won't win," A Fort Lauderdale attorney, agreed and said "there is room for negotiation with developers." according to the Daily Business Review , January 17, 2008 edition, "Rather than taking the cases to court, [the Fort Lauderdale attorney] has recently helped some buyers work out settlement agreements with developers. The agreements can't be disclosed, but [the Fort Lauderdale attorney] said they involved buyers accepting refunds less than the full deposit or developers agreeing to give the buyer a discount on the unit." According to the [Fort Lauderdale attorney], "It's a case-by-case basis, but I advised them to settle based on my review of the complaint, an estimation of what it would cost to litigate and the amount of the deposit."

The article from the Daily Business Review , January 17, 2008 edition by Polyana da Costa explained, "Lenders also have gotten in the way of developers and buyers who want to settle." An Aventura attorney who has filed dozens of lawsuits on a contingency basis for condo contract holders against developers explained, "I have talked to a major developer who wants to go to mediation, and the contract requires mediation before a suit is filed, but the [Aventura attorney] said he can't negotiate because of the lender," "Lenders have assignment rights to contracts as they have rights to the real estate," the [Aventura attorney] said. "They can't do anything without the lenders' approval, and from what I've heard the lenders are not giving them the cooperation they need to deal with this market,"
The [Aventura attorney] appears to be optimistic about condo lawsuit outcomes, the [Aventura attorney] explained, "Developers' contracts are indeed written in language that favors the developer, but in many cases "developers overreached in trying to protect themselves so much that they created unenforceable contracts." the [Aventura attorney] "calls them illusory contracts, meaning the developer used overreaching language and put in a provision that said they could change anything they wanted including square footage, finishes, colors, anything," The Daily Business Review , January 17, 2008 written by Polyana da Costa claims, "Leading luxury condo builder Related Group used a contract like that in most if not all of its South Florida developments." Based on the [Aventura attorney's] review of dozens of local contracts, the [Aventura attorney]said "other developers have used the same contract in their developments."

The Daily Business Review article went on to explain, "other attorneys who did not want to be identified said some projects are known to have "bad" contracts and "good" contracts. The "good" contracts, in the eyes of attorneys, were well-written to protect the developer without overreaching and make it difficult for a buyer to get out. Among them are the Edgewater, a 307-unit development in West Palm Beach; Vintage at Lighthouse Point, a townhouse community by WCI Communities; Orchid Grove, a development in Pompano Beach by Tarragon; and the Paradiso condo in Miami Beach."

The Daily Business Review article stated:

"Attorneys say they are being selective despite the large number of lawsuits being filed."

"Among the most common claims used in contract cancellation lawsuits are:

• Material and adverse changes — buyers can cancel contracts when "material and adverse changes" were made to condo documents filed with the state. It's up to the courts to decide whether a change was "adverse." Lawsuits claim changes that vary from square footage to condo association fee increases. In the Marina Grande ruling, the judge found the change was not adverse to the buyer because the buyer could afford to pay.

• Interstate Land Sales Act — A 1968 federal law to protect land buyers. The law has been applied to condos and has several provisions including fraud related to misrepresentations in the contract, a requirement to give the buyer 20 days written notice in case the buyer is in default and a requirement to file certain property documents before construction. Developers are exempt from the act under certain circumstances, including a commitment to deliver a unit within two years. "

The excerpts from this article are from the Daily Business Review , January 17, 2008 edition and was written by Polyana da Costa.

The Real Estate Attorneys at Deposit Recovery Services concentrate and are experienced in New and Preconstruction Law and are working hard to achieve productive relationships between Purchasers and Developers. Attorneys from Deposit Recovery Services have been successful resolving Contract Disputes between our clients and well funded Real Estate Development companies like those mentioned in a recent New York Times article.

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: This website and its contents do not constitute legal advice and are not intended to create any type of attorney-client relationship. This blog is for informational purposes only. 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. Thank you.

FLORIDA REAL ESTATE MARKET TO IMPROVE-CONDOMINIUMS AND HOUSING MARKET ON UPSWING IN 2008

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/

According to a report by Attorneys' Title Insurance Fund Inc. (The Fund), "the Florida housing market has flattened and is expected to begin to recover during the next several years."

As described by the South Florida Business Journal, during the spring of 2007 the real estate market throughout Florida was seriously in trouble. Then, during the summer of 2007, issues with subprime mortgages hurt the market even more in nearly every Florida county. According to the South Florida Business Journal article, Hank Fishkind, of Orlando-based Fishkind & Associates, the economist who created the report for The Fund, 2008 shall mark the beginning of recovery for the Florida housing market.

The Real Estate Attorneys at Deposit Recovery Services concentrate and are experienced in New and Preconstruction Law and are working hard to achieve productive relationships between Purchasers and Developers. Attorneys from Deposit Recovery Services have been successful resolving Contract Disputes between our clients and well funded Real Estate Development companies like those mentioned in a recent New York Times article.

DISCLAIMER: This website and its contents do not constitute legal advice and are not intended to create any type of attorney-client relationship. This blog is for informational purposes only. 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. Thank you.

Real Estate Deposit Recovery Attorney, Internet Giants & Miami Condo Development

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


The Real Estate Attorneys at Deposit Recovery Services concentrate and are experienced in New and Preconstruction Law and are working hard to achieve productive relationships between Purchasers and Developers. Attorneys from Deposit Recovery Services have been successful resolving Contract Disputes between our clients and well funded Real Estate Development companies like those mentioned in a recent New York Times article. Internet giants Jim Clark and Tom Jermoluk, who started such companies as Netscape, Silicon Graphics and WebMD decided to enter the volatile Miami real estate market building condominiums under their company, Hyperion Development.

If you are currently involved in a Florida Preconstruction or Condominium Real Estate contract and are looking for some guidance and answers before your contract closing date, contact via email: info@depositecoveryservices.com Florida Real Estate Attorneys focused on Deposit Recovery and contract rescission at Deposit Recovery Services. Positive negotiations and Business relationships are some of the keys to our success. Contract Rescission and a partial Deposit Recovery may be a better financial decision than all or nothing litigation.

Do you know the protections you are afforded under Florida and Federal Law?Deposit Recovery Services has become one of the fastest growing, most well known firms in the state of Florida regarding Condominium and Preconstruction Contract Law.

Please call Deposit Recovery Services at 954-527-1512(South Florida Area) or 1-877-527-1512 (Toll Free outside South Florida) or email: info@depositrecoveryservices.com for a FREE consultation.

DISCLAIMER: The Law Offices of Eric L. Bronfeld, P.A. have NOT prepared or reviewed these materials. This blog is for informational purposes only.
This is not and does not constitute legal advice and the materials 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 file a lawsuit to recover my Condominium or Preconstruction Deposit?

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


When considering your options in a contract dispute with a Florida Real Estate Developer, remember, filing a lawsuit is the last and most costly option.
The Real Estate Attorneys at Deposit Recovery Services are working hard to forge productive relationships between investors and developers. We never take a "Sue" first approach. We find that litigation is a last resort, one which we employ only after all attempts at negotiations fail.
We are here to help you resolve your issues, not collect court enforced legal fees.
As one of the most respected and well known Contract Rescission law firms in the state, we have been very successful at resolving the majority of our case load without entering a drawn out lawsuit or court proceeding with the very well funded Real Estate Development companies.
Positive negotiations have been the keys to our success in this arena of law.
You will find, that a partial Deposit Recovery and contract rescission will usually be a more appropriate financial decision than an all or nothing litigators approach.

Are you currently involved in a Florida Preconstruction or Condominium Real Estate contract dispute? Are you looking to negotiate out, before your contract closing date?
Have you spoken to a Florida Real Estate Attorney focused on Deposit Recovery and contract rescission? Do you know the protections you are afforded under Florida and Federal Law?


Deposit Recovery Services has become one of the fastest growing, most well known firms in the state of Florida regarding Condominium and Preconstruction Contract Law.
We are contacted daily by attorneys across the United States looking to us for our experience in these matters.
Please call or email Deposit Recovery Services for a FREE consultation.

Miami Real Estate will be back, we are bullish on the long-term, but perhaps you can have a better entry point at a future date, with the help of a Florida Real Estate Attorney.

Miami Condominium and Preconstruction property values have been hit hardest. As a Real Estate Investor, you will not be eligible for the latest government rescue plan. It will more likely work against your Real Estate Investment.


Contact an experienced Florida Real Estate Attorney to learn the options you have prior to closing on your Pre-Construction and/or Condominium Real Estate investment property.

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.

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

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

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

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

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

Resnick launched recovermydeposit.com last month in response to the poor information on the subject, he said.

“This is so new,” said Resnick, who left Gunster Yoakley & Stewart in 2005 to start his own firm. “People don’t know where to go for help. I saw a lot of people asking family members and friends for advice and referrals.” recover my deposit

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

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

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

His three-attorney law firm spends 90 percent of its time working on deposit recovery cases. Cooper, with 17 years in the field, said he needs no Web site to attract clients.

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

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

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

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

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

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

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

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

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

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

“In most of the contracts I review, buyers have grounds to recover their deposits,” Cooper said.

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

Complaints such as Piña’s and Cardenas’ moved Fort Lauderdale lawyer Eric Bronfeld to launch depositrecoveryservices.com three months ago.

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

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

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

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


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

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

The original Deposit Recovery Services - Licensed Florida Real Estate Attorneys

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

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

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

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

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

Builder unmoved by flighty buyers
Reprinted from The Palm Beach Post

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

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

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

Can a Florida Real Estate Attorney help you rescind your Pre-construction or Condo contract?

Can a Florida Real Estate Attorney help me rescind your Pre-construction or Condo contract? Will I be able to recover all or part of my deposit?

The answer is in the contract that you signed with the Real Estate Developer. If you haven't spent the last 10 years reviewing Real Estate contracts, we urge you to contact a Florida Real Estate Attorney.

What is the cost for an initial consultation with a licensed Real Estate Attorney at Deposit Recovery Service?

Absolutely Free - Isn't it worth your time to make a phone call.

Is it difficult to get the ball rolling?

Simple answer - NO, After speaking with one of our Attorneys, He/She will quickly assess if we believe we can help you to recover all or part of your Condominium or PreConstruction Deposit. If so, we will ask you to send us a copy of your signed Real Estate contract.

What's next?

After thoroughly reviewing your contract, Deposit Recovery Services will explain the options that our Attorneys can pursue on your behalf. Sign a simple no-fee retainer and we go to work.

The Attorneys at Deposit Recovery Services have had outstanding success in recovering deposits for our clients. More likely than not, we have already worked with the developer on the other end of your real estate contract (often in the same project which you are involved).

It's no secret that the South Florida Real Estate market is in historic trouble, with the end nowhere in site. You need to assess your current position. You may find that, although unfortunate, losing a portion of your condo deposit may be the proper financial decision in light of the current market conditions. In many situations you will find yourself going to closing tens or hundreds of thousands of dollars above current market value.

Call or Email Deposit Recovery Services today for your Free Consultation with one of our experienced Real Estate Attorneys.
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Below is a recent report from CBS4 Miami - You may have an opportunity to avoid closing.
Please call a Florida Real Estate Attorney today, learn your rights



Can I rescind my condo contract?
Can I be forced to close?
Can I recover any or all of my Preconstruction Condo deposit?

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Housing Prices Continue to Set New Records - All of Them Bad..

Article from seekingalpha.com

As it does every month, Standard & Poor's released the readings for the S&P/Case-Shiller Home Price Indexes. Although the indexes have been around a while, lately they've been getting more attention as housing markets have plummeted. The reading for September did not deviate from the trend—there were no bright spots in the report. The U.S. National Home Price Index, a quarterly index covering the nine U.S. census divisions, suffered its worst decline in its 21-year history when it fell 1.7% from the second quarter. It was also down 4.5% year-over-year, breaking the record low it set in the second quarter. The monthly indexes were equally bleak. In addition to 10-city and 20-city composite indexes, an additional 20 indexes are calculated for select major metropolitan areas. "Most of the metro areas continue to show declining or decelerating returns on both an annual and monthly basis. All 20 areas were in decline in September over August. Even the five metro areas that still have positive annual growth rates—Atlanta, Charlotte, Dallas, Portland and Seattle—show continued deceleration in returns," says Robert Shiller, chief economist at MacroMarkets LLC, and one of the creators of the indexes. Those same five cities have consistently been among the strongest performers in recent months. However, the other end of the spectrum has been less stable. Detroit, consistently one of the worst performers, is down 9.6%, the same as San Diego. Detroit had dominated the lowest ranking until being overtaken by Tampa just last month. This month Miami joins the other Florida metro area: It is down 10% year-over-year, while Tampa is down 11.1%. Not only did all 20 metropolitan areas show declines from the previous month, but eight of those metropolitan areas experienced record-low year-over-year returns: Atlanta (0.4%), Chicago (-2.5%), Las Vegas (-9.0%), Miami (-10.0%), Minneapolis (-4.5%), Phoenix (-8.8%), San Diego (-9.6%), Tampa (-11.1%) and Washington, D.C. (-6.6%).
(under these market conditions is closing on your property the wise financial decision? Contact an attorney experienced in real estate contract rescissions and deposit recovery to learn the options that Florida and Federal law may provide)
The absence of positive signs in the latest home price index returns indicates we haven't seen the bottom of the trend, and raises the uncomfortable question of whether other areas of the economy may soon follow.
Written by Heather Bell

Contact a Florida Real Estate Attorney for a FREE consultation today.

DEPOSIT RECOVERY SERVICES
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 Preconstuction and Condominium Contract Rescission and Deposit Recovery
Miami, Tampa, West Palm Beach, Fort Lauderdale, New York - Full Service Real Estate Attorney
Real Estate Developer, contract lawsuit. Don't want to close on my condo. Run on Florida investment pool. withdrawals suspended. Real Estate bubble burst and Florida Real Estate depression.

Members of the press - Do you need a source?
A licensed, practicing Real Estate Attorney in South Florida. With deep insight into Deposit Recovery and the current Florida Condominium and Pre-Construction market.
Please feel free to contact 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.

Have you hired a Florida Real Estate Attorney?

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

Condo Conversions tips from the Miami Herald

BEFORE BUYING A CONVERTED CONDO

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

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

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

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

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

• Research the developer's reputation and business history.

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

Hitting back

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

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

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

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

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

Condo developers are striking back.

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

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

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

Condominium and Pre Construction Deposit Recovery Services

This ad is real

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

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

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

Reprinted from Kevin Tomlinsons blog on The Miami Condominium market.

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

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

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

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

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

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

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

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

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

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

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


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

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