Wednesday, October 08, 2008

Condo Buyers Face Loss Of Deposits As Developer Faces Foreclosure

In Myrtle Beach, South Carolina, The News Sun reports:
  • Millions of dollars are missing from the Atlantic Palms Resort condominium development in Myrtle Beach, including deposits from investors who never received their units, a situation real estate experts say points out a glaring weakness in South Carolina's real estate laws. While state law requires real estate agencies to put condo deposits into an escrow account, there is no such requirement if the deposits are given directly to a project's developer. That means deposits that normally would be kept safe in case a project fails could instead be lost as a developer uses the money to pay daily bills.


  • That is what happened at Atlantic Palms, where developer Haricharan "Mike" Mishra took $2 million worth of deposits from buyers and used the money to pay construction and other costs, according to court documents. [...] Atlantic Palms now is in foreclosure, and the condo buyers could wind up losing their money.

For more, see Lax laws fall short for condo buyers (MB project's missing deposits highlight flaws).

For other posts on builders/contractors allegedly stiffing their customers, go here, go here, and go here. contractors stiff subs customers yelbow