Lawsuit Filings By Condo Buyers Seeking To Back Out Of Purchase Contracts Picking Up Steam In South Florida

The Miami Herald reports:

• Brooklyn housekeeper Rita Dobrer was swept up in South Florida's real estate frenzy, using $600,000 from a jury award as deposits on six condominiums in two Miami projects in 2005. Dobrer said she never had the intention, let alone the financial ability, to buy the six condos -- which cost about $3 million. Rather, she claimed she was enticed by the developer's verbal guarantees that she could reap $600,000 in profits by selling the units without ever taking ownership.

• Dobrer's hopes for a windfall, though, have cratered in the ailing residential real estate market. Unable to flip the units, Dobrer joined 35 other Russian immigrants in New York, New Jersey and Florida who on Friday sued Miami developer The Related Group for the return of the deposits on units in [two of Related's construction projects].

Reportedly, one buyer seeking to recover her deposit claimed that the developer wooed buyers with buffet dinners at a fancy Russian restaurant in New York and that the the sales rep told her she could make $100,000.

Among the allegations made against the developer is that it needed to register its condominiums as investments before pitching units to New York buyers, as required by New York state law. The purpose of the law is to ensure prospective buyers have detailed information to make a reasoned judgment about whether to buy.

For more, see Condo-buyer lawsuits mount (Lawsuits filed by would-be condo buyers wanting out of purchase contracts continue to increase as projects near completion).

Go here for other stories on real estate speculators looking to back out of purchase contracts.

Go here for other posts related to the Miami condo market problem. zebra