Protecting Preconstruction Florida Real Estate Purchases
The frenzied pace of Florida real estate construction and the market´s rapidly increasing prices have started to generate complaints from preconstruction buyers who feel cheated by developers. The general allegation is that greedy developers are trying to take advantage of the ever increasing Florida real estate prices “by stringing along buyers who sign contracts an make deposits, only to renege on the contracts later to sell units to others for still more money.”
One example of such a dispute is the case of developer Isaac Kodsi, who was tried in Broward Circuit Court “for breach of contract and unfair trade practices.” The suit claims that Kodsi defaulted on contracts for two units in order to sell the same Florida real estate to other purchasers at a higher price.
The outcome of such legal battles depends “on provisions in individual sales contracts,” and developers are continuously finding ways of protecting themselves. One loophole some Florida real estate buyers may encounter are termination clauses that could take effect “if construction isn’t started by a specified date or if the developer can’t get financing.” Buyers can only truly protect themselves by closely scrutinizing a contract.
One example of such a dispute is the case of developer Isaac Kodsi, who was tried in Broward Circuit Court “for breach of contract and unfair trade practices.” The suit claims that Kodsi defaulted on contracts for two units in order to sell the same Florida real estate to other purchasers at a higher price.
The outcome of such legal battles depends “on provisions in individual sales contracts,” and developers are continuously finding ways of protecting themselves. One loophole some Florida real estate buyers may encounter are termination clauses that could take effect “if construction isn’t started by a specified date or if the developer can’t get financing.” Buyers can only truly protect themselves by closely scrutinizing a contract.
