As lenders begin to foreclose on Miami condos buyer lawsuits against condo developers are stronger then ever.
The pattern is beginning to get more predictable. Miami condos sales launch, falter on payments and sometimes the lender comes calling to collect either the money or the keys to the high-rise.
Quantum on the Bay, just north of downtown Miami, and Biscayne Landing, in North Miami are being sued by attorney Robert Cooper who is representing Miami condo buyers in civil lawsuits filed recently. In both cases, he alleges the developer did not deliver on deadlines and promised amenities.
Boca Developers, Biscayne Landing’s builder filed a motion to dismiss, claiming that buyers were notified at the closing about the changes. Quantum developer Terra Group did not return calls seeking comment.
The Miami Herald reported on April 17th that Deerfield Beach-based Boca Developers, which is building Biscayne Landing, is also in some financial trouble. Wachovia Bank moved to foreclose on its Las Olas Riverfront mixed-use project in downtown Fort Lauderdale,
With corporations or individuals signing on the dotted line at contract time, the practice of pooling money to buy a unit was common during the boom. With the market in the twilight of this cycle, relationships have soured and so have the partnerships.
A specialist in the Miami real estate industry that handles closings for one of the large real estate agencies and other high-profile developers said the lawsuits are more of a distraction than anything else.
One name on a contract often drags in several people in the lawsuit, in some cases. In the end, it's another excuse to try and get out of a contract.
Some of these developers like The Related Group have other legal troubles on the horizon. New York's Attorney General demanded Related return deposits Empire State buyers paid for units in 50 Biscayne and Harbour House. Apparently the Attorney General said Related had not registered to sell units in New York. Other developers may be getting the same letter because South Florida developers marketed units to the Northeast particularly to prospective buyers in New York.
Another important ruling tied to Florida real estate may come down this month, as the 4th District Court of Appeal in West Palm Beach decides whether buyer contracts can be broken due to increases in maintenance fees.
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