Pre-Construction Contract Termination and Deposit Return Litigation
By John L. Urban, Shareholder - Urban Thier Federer & Jackson, P.A
Background
During the height of the Florida real estate market, speculators, investors, and others eagerly entered into pre-construction real estate purchase contracts, paying deposits in the $10,000’s and even $100,000’s for the opportunity to resell or flip the properties and make “easy money” in a hot market. However, with the significant downturn or correction of the Florida real estate market, many of these buyers are locked into real estate purchase and sale contracts which commit them to close on the purchase of properties which they no longer want and which no longer have the potential for a quick profit. The developers/sellers want these individuals to believe that they have only two options: 1) walk away and forfeit their deposit and/or face a lawsuit by the developer for additional damages or 2) close on the sale (assuming they can secure sufficient financing) and potentially own a property worth significantly less than what they were forced to pay for it. However, there is a third option that developers do not want you to know about (more…)
