Pre-construction
Deposit Recovery

During the housing boom of just a few years ago, people were placing deposits on new construction based on the belief that the market had nowhere to go but up. Today, many of these projects are left abandoned and in disrepair, Often the developers are bankrupt, or facing bankruptcy. They have your deposits. Getting that money back can be a grueling experience, and you should be represented by an attorney to get back what might be rightfully yours.

Our Law firm works with clients in litigation relating to the recovery of down payments of prospective Buyers arising out of pre-construction condominium purchases.

Developers refuse to return deposits

Many developers refuse to allow Buyers under pre-construction contracts to cancel their agreements. You very well may have a legal right to cancel your agreement, and get back your deposits.

Don't be forced to close on your real estate contract.

Do not be forced into closing on property you no longer wish to purchase.

Legal Options to forfeiting real estate deposits

There are two pieces of legislation that can immediately come to the aid of the investor who has invested in pre-construction projects, and help them get out of their contracts, and even to recover their deposits.

OUr attorneys can review your contracts, and validate their conformance against the Florida Condominium Act and the Interstate Land Sates Act. Our law firm may find grounds to cancel a purchase contract and recover a purchaser's deposit moneys (down payments) even with interest.

We can often successfully support you in in recovering pre-construction deposits from many developers throughout the State of Florida .

There are several avenues that your attorney can follow in supporting your recovering Real Estate Deposits. For this website, we will explore just one of those options, The Interstate Land Sales Full Discourse act.

Interstate Sales Full Disclosure Act.

Under the Interstate Land Sales Full Disclosure Act (â€œILSFDAâ€) and/or Florida law, you might have the right to terminate the contract on your pre-construction condominium or home and receive all, or a portion, of your earnest money back. In simple terms, ILSFDA places burdens and responsibilities on developers to make disclosures relating to the condition of real property. It also contains anti-fraud provisions which impose civil liability to developers who make false or misleading promises. In the booming real estate market of the past decade, consumers paid substantial deposits on lots and condo units only to experience delays of up to three (3) years between the signing of a contract and closing.

The Interstate Land Sales program protects consumers from fraud and abuse in the sale or lease of land. In 1968 Congress enacted the Interstate Land Sales Full Disclosure Act, which is patterned after the Securities Law of 1933 and requires land developers to register subdivisions of 100 or more non-exempt lots with HUD and to provide each purchaser with a disclosure document called a Property Report. The Property Report contains relevant information about the subdivision and must be delivered to each purchaser before the signing of the contract or agreement.

How can I get my money back?

If you purchased a registered lot and received a Property Report prior to signing your contract or purchased a lot sold under either the intrastate, multiple site or substantial compliance exemption, you can cancel your contract and receive a refund within seven days of the date of your purchase. If you are entitled to and did not receive a Property Report prior to the time of sale, you are entitled to cancel your contract and receive a refund within two years from the date of your purchase. This two year cancellation period also applies to some purchasers of registered lots who received a Property Report prior to the time of purchase. If you believe that you are entitled to cancel your contract and receive a refund, you should inform the developer, not HUD, in writing of your decision. If the developer refuses, you should file a complaint with HUD through our Deposit Recovery Attorneys.

The Real estate developer filed for bankruptcy, how will that affect my purchase?

Although the circumstances of each case will vary, the odds are very good that the bankruptcy will affect your rights. If you have not received information from the developer, you should contact the bankruptcy court to find out the procedure for filing a claim. You should then consult our Real Estate Law Firm to determine your rights in this matter.

When is it appropriate to recover Pre-Construction Deposits?

Filing for preconstruction deposit recovery should be considered when value of unit that you are supposed to close on has decreased significantly, there are a large number of purchasers failing to close or you are having trouble obtaining financing.