Preconstruction Deposit Recovery

The recent decline in the real estate market has caused many preconstruction condominium purchases to appraise for less than the unit’s preconstruction purchase price. If you are being called to close and find yourself in a catch-22, between letting go of a substantial deposit or proceeding with a bad investment, we may be able to help. The Interstate Land Sales Disclosure Act (“ILSA”) requires developers to file certain property documents before construction, meet certain deadlines, give certain notices, and limits some developer claims for damages. ILSA also allows buyers to cancel contracts when “material and adverse changes” were made to condo documents or the unit itself, such as square footage changes. At the Schwartz Law Firm, we will review your purchase contract, follow-up letters, amendments, and notices, which may indicate changes were made to the terms of your purchase such that some or all of your deposit will be recoverable. We will also look for any misleading information in your purchase agreement and related papers. Armed with the results of our review, we may be able to help you recover some or all of your condominium deposit.