Many of our clients have tried to resolve their differences directly with the Developer without knowing what their legal rights are. The contracts are complicated and involve Federal and State Statutes as well as recent caselaw construing the statutes. Quite often these negotiations have hurt our clients' recoveries. In most cases where the client has had direct negotiations with the Developer, the information shared by our clients with the Developer has been used against them in subsequent negotiations and litigation. In most cases these negotiations have only served to delay our clients' deposit recoveries. Further, in certain instances, attempts by our clients to renegotiate or obtain a price reduction have constituted a waiver of our clients legal rights.
Our firm aggressively represents our clients and has recovered some or all of the pre-construction deposits in every case we have undertaken. On this site you will find a list of recent recoveries and judgments we have obtained against developers. We will review your contract at no charge to you and we accept cases on a contingency fee basis or on a number of flexible fee structures.
Florida Law has specific time limitations in which to file a lawsuit. The Interstate Land Sales Full Disclosure Act also has its own set of time limitations. Most of our clients' contracts were signed over two years ago and the time in which they have to preserve their legal rights is running out. For example, under the Interstate Land Sales Full Disclosure Act a contract is subject to rescission within two years. After two years one is typically entitled to only a portion of their deposit back. After three years Developers argue that purchasers rights under the Interstate Land Sales Full Disclosure Act are time barred.
CASE LAW UPDATE
Recent Case Law Update
CRC 603, LLC, and CRC 1103, LLC,
Appellants,
Vs
North Carillon, LLC, and First American Title Insurance Company,
Appellees.
On September 7, 2011, in a non-final opinion, the Third District Court of Appeals issued what can perhaps best be describe as a severe blow to Condominium Developers in South Florida. While lower state courts in Florida had been refusing to follow the ruling of Federal Court Judge Cecilia M. Altonaga in Double AA International Investment Group, Inc. v. Swire Pacific Holdings, Inc., 674 F. Supp. 2d 1344 (S.D. Fla. 2009)., which held that Florida Statute 718.202 required developers to maintain a distinct and separate escrow account for the initial 10% of the purchase price paid towards the purchase of a condominium unit for the second 10%, the Third District Court of Appeal unequivocally affirmed Judge Altonaga's ruling.
In pertinent part the Third District Court of Appeal wrote:
We conclude that a well-reasoned federal decision in 2009 on the issue is dispositive, notwithstanding a 2010 statutory amendment intended to "clarify" the escrow requirements. . . . , citing the Court in Swire, "[c]onsidering the plain language of the statute, giving meaning to each word as written, and avoiding an interpretation that would render portions of the statute surplusage, the only reasonable conclusion is that the statute requires a developer to establish two separate escrow accounts if a buyer deposits more than 10 percent of the purchase price. Given that requirement, and given the express language of section 718.202(5), [the developer's ] failure to establish two separate escrow accounts for the [buyers'] deposit violated the statue, and rendered the Purchase and Sale Agreement voidable by the [buyers].
The importance of this decision is that a purchaser may now have a much greater chance of voiding a condominium purchase agreement than in the past.
For a free consulation with one of our experienced condominium dispute attorneys to see how this decision may impact your condominium deposit dispute please call the Law Offices of Hoffman & Hoffman, P.A. at 305-372-2877.
Time is of the essence to act
Attracted by the international lure and sexiness of Miami, domestic and international investors alike entered into pre-construction condominium purchase agreements at a dizzying pace. It should come as no surprise now that South Florida's once red hot real estate market has now gone bust; this decline has been caused in part by the rampant over building in Miami within the last five years and the general decline of the global economy. Miami's skyline has forever been changed, now a seemingly never ending sea of rising concrete and steel. The fate of several of Miami's newest residential condominium buildings are currently in limbo as would be condo purchasers attempt to get out of their pre-construction contracts. The ramifications of individuals not closing on their pre-construction contracts are numerous. For example condominium fees in several buildings have skyrocketed, condominium values have generally plummeted, many buildings are on the brink of foreclosure, and the demographics of several buildings has changed dramatically.
While some clients are simply seeking to avoid their pre-construction contracts because they made a “bad investment decision,” many clients are seeking to invalidate their pre-construction contracts because of: unreasonable delays by the developer, violations by the developer of the Interstate Land Sales Full Disclosure Act – ILSA (Federal legislation enacted by congress to protect purchasers from unscrupulous developers); violations of Florida Statute 718, and failure of the developer to deliver the amenities, building, or unit promised.
We never charge a fee to review your case
If you have a condo deposit you want to recover call us. Let us explain the latest developments in condo contract disputes. Our offices have handled many cases and recovered deposits for our clients. Let us explain to you our approach to recovering your deposit. Have you tried to deal with the developer directly with no results? Most of our clients have tried to deal directly with the developer without success. In some cases to the detriment to their legal rights.
At the law firm of Hoffman & Hoffman, P.A., we have handled condo deposit disputes throughout the state of Florida from our offices in Miami and Naples. We have recovered settlements from numerous developers. Our attorneys are skilled in resolving contract disputes that often bring in more compensation than our clients originally anticipated. We do not charge you a fee until you recover money damages.
Beware: Closing on that Condo Can be VERY Costly
In a transparent attempt to stave off litigation, developers are finally starting to offer significant price reductions in order to induce reluctant buyers to close on their pre-construction units. While these reductions are often substantial, it is important to keep in mind that these price reductions are often based upon “height of the market” pricing. Recently condominiums in downtown Miami have sold as low as $156sft in bulk purchase. At the height of the real estate market prices in excess of $400sft were not uncommon in downtown Miami.
“In the lowest bulk price paid for condo units in the downtown area since the market crashed last year, Prodigy Capital Investments, a newly created corporation based in Miami, has purchased 10 units in the Brickell on the River South condominium for $156 per square foot, according to new research from Bal Harbor-based Condo Vultures, a real estate consultancy that closely follows the downtown condo market. ”
The Miami Herald, Saturday, August 22, 2009
As illustrated above, no matter how enticing the discounts initially being offered by the developer appear, they must be carefully analyzed given the present state of the South Florida Real Estate Market.
Recently, we have been contacted by multiple individuals currently in contract with Paramount Bay. Our firm currently has clients in litigation with the developer and has spent a great deal of time researching the Paramount Bay development and the possible cause of actions for our clients. If you have a contract please contact us to discuss what we believe are possible claims you may have against the developer of Paramount Bay.
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