PRE-CONSTRUCTION DEPOSIT DISPUTES
The recent decline in the South Florida real estate market has caused many preconstruction condominium purchases to appraise for significantly less (as much as 25% less) than the unit’s preconstruction purchase price. The glut in the market in the last two years and the shear number of luxury units coming on the market at this time has caused developers to delay completion and closings to reduce their inventories and delay repayment of construction financing – at buyers’ expense.
If you are being called to close on your pre-construction contract, or are in a contract that is past due for completion, and are uncertain as to whether to proceed with a bad investment or sue for the return of your deposits, we may be able to help.
Both Florida and federal laws require developers to file certain property documents before construction, meet certain deadlines and give certain notices and disclosures – limiting some developer claims for damages. It is possible to cancel contracts when “material and adverse changes” were made to the project, or where condominium documents were not properly filed or sent to you for review or when a substantial completion date has been missed without legal excuse. In that event, you would be entitled to the return of your deposit, with interest, as well as attorney fees and legal costs.
At Reiner & Reiner, we have investigated dozens of projects all over South Florida and are intimately familiar with the laws governing pre-construction property offerings, large development construction and specific issues concerning condominium development. We have filed more than 100 contract cancellation lawsuits with great success. It is likely we have already reviewed the development you have invested in and may already have clients in those developments seeking the return of deposits. We will review your purchase contract, follow-up letters, amendments, and notices, any of which may indicate whether changes were made to the terms of your purchase such that some or all of your deposit may be recoverable. We will also look for any actionable misleading information in the prospectus and marketing materials and test the legal sufficiency of developer delays against actual “force majeure” standards. Armed with the results of this review, we will work to help you recover your condominium deposit or to negotiate substantial discounts to close – if that is your wish. We offer our services under a normal hourly retainer or contingency retainer or, in some instances, a combination/hybrid of both.
Please contact us to discuss your rights.
Telephone (305) 670-8282; Fax: (305) 670-8989