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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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?

WANT A SIMILAR BLOG?? WANNA BE FOUND ON THE INTERNET?
CLICK HERE!!!!!!!!

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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.

Condominium and Pre Construction Deposit Recovery Services

This ad is real

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

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

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

Reprinted from Kevin Tomlinsons blog on The Miami Condominium market.

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

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

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

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

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

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

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

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

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

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

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


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

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

Miami Herald article on Preconstruction Condominium contract dispute lawsuits.

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

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

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

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

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

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

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

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

Florida Real Estate contract rescission in Condo and Preconstruction

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

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

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

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

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


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

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

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

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

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

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

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

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

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


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

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

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.

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

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

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

Condominium laws in Miami

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

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

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

Abandonment (Press release for New York Real Estate Attorney)

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


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

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

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

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

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

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

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

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

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

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

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

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

SETTLEMENT'S TERMS

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

Merco executives did not respond to interview requests.

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

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

2007 VS. 2004

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 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.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
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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."

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
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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.

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
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Condo buyers remorse or exercising your legal rights in a Condo contract dispute?

Please call or email for a free consultation, we encourage you to bring us the details of your situation, we are here to help.

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."

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
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Condo-buyers' suits in Florida continue to rise

Countless buyers, who eagerly locked in prices during the Florida condo boom's height only to see the market collapse before their units were built, are suing to recoup their deposits and get out of their real estate purchase contracts.

There appear to be numerous cases in Palm Beach, Broward and Miami-Dade counties but the trend extends far beyond the glutted South Florida condo market:

According to Manatee County court records, buyers have filed dozens of suits against multiple developers.

Attorneys representing Buyers in Charlotte County and in Sarasota County, have filed at least five suits.

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

The Florida Department of Business and Professional Regulation said it opened investigations on 2,682 condominium complaints between July 1, 2006 and June 30, 2007 - a 44 percent jump from two years earlier demonstrating the fact that Buyers are increasingly complaining to state regulators.

According to Florida real estate observers, the unique nature of Florida's condo boom and bust are behind the rise in legal actions.

During the boom's 2004-05 height, investors busily purchased condos at pre-construction prices looking to flip the units for profits. Developers supplied the buying craze with plans to build numerous new condos, including as many as 3,000 in Manatee.

Labor shortages and hurricane-related supplies may have delayed construction or in some cases canceled construction outright. Early in 2006, as the first projects were nearing completion, the once-hot and sunny Florida market began to go cold and cloudy. As more units became available for sale, prices dropped in an overabundant market. The resale market basically disappeared.

Getting out of contracts

Investors, under contract for units have began seeking ways to get out of their contracts.

Lawsuits on behalf of some buyers generally alleging the developer broke the terms of the purchase contract - usually by failing to complete the unit on time, failing to build promised amenities, canceling projects or making other changes the lawsuits claim are "material and adverse" to buyers.

Developers generally argue the contracts remain valid, the delays were legally excusable and any changes were not detrimental to buyers.

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


Law Offices of Eric L. Bronfeld, P.A.
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info@depositrecoveryservices.com

Miami Condo and preconstruction lawsuits continue to grow against developers

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

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

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

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

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

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

HIGH-END HASSLES

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

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

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

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

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

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

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

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

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

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

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

DEVELOPER’S STANCE

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

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

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

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

Law Offices of Eric L. Bronfeld, P.A.
PO Box 22506
Fort Lauderdale, Florida 33335
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Florida Condo and Preconstruction Laws set to change. Act now for Deposit Recovery

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

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

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

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

Florida 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

Florida Condo preconstruction deposit recovery

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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