Buying a condo in development comes with risks. You could lose money if your developer files for bankruptcy before the project is completed.

Here are some ways to handle this problem.

Check Your Contract 

The first thing you should do is read over your building contract. It should outline the steps you should take if the developer stops working. 

Usually, a new developer is hired to complete the project. This allows construction to continue normally. 

Contact Your Escrow Company 

Most buyers put their deposits in escrow. This is a third-party service that holds the money until your building project is completed. If something bad happens, the escrow company can refund you.

Contact your escrow company to let them know your developer declared bankruptcy. You may need to give them a copy of your building contract. Your funds should be released when the company verifies the developer abandoned the project.

If you paid the deposit to the developer themselves, you have fewer options to get it back. 

You Might Lose Interest 

Unfortunately, you might lose interest if your developer declares bankruptcy. Even if you get your deposit back, that money would have earned interest had you invested it somewhere else. 

This is something to consider when buying unfinished property. You may want to put your deposit in the bank instead of paying your developer so you can earn interest while you wait for your project to be completed. 

If your developer cancels the project, you won’t have lost any money. You also won’t have to wait for escrow to return your deposit. 

How Florida Property Buyers Can Protect Themselves 

Make sure any contract you sign clearly states what happens if the builder goes bankrupt. It should also cover if you will get your deposit back and how. Don’t sign anything before your lawyer has a chance to look over it. 

If the contract you’re given doesn’t protect you, your attorney can draft a new agreement for your developer to sign instead.

Experienced Legal Representation For Florida Developer Disputes 

Feinstein Real Estate Litigation & Business Law can provide you with comprehensive legal support if your developer declares bankruptcy. Our experienced legal team has the skills to negotiate zealously on your behalf to get the best outcome possible. 

Call our office now for a consultation at 954-767-9662 and we can start right away.

When you decide to build a home, it’s crucial to read the fine print in your contract and know what to expect and what you’re getting before signing on the dotted line. Many Florida developers take advantage of unsuspecting buyers, who often believe they’ve finally invested in their dream home, like the homebuyers of the still-under-construction Coconut Grove townhouse community. 

60 Days vs. 3 Years Of Construction & Development 

A group of Florida homebuyers became involved in a 60-day project that has turned into 3 years of nightmarish back-and-forth between the homebuyers and the developer’s legal team, who continue to claim that they couldn’t help the delays. But, this pattern isn’t uncommon in South Florida where property value is at an all-time high and developers can collect a down payment from each buyer well in advance of being required to provide access to the purchased property. 

And in the case of the Coconut Avenue townhomes, it begs the question of whether a developer is ever required to produce the property or if they can claim infinite delays. Some home buyers have brought forth lawsuits, but the original contracts state that the cases must be handled via mediation or arbitration – a huge benefit to the developer that has resulted in the dismissal of litigation suits. 

Here’s how to read your home building contract and what to look for to make sure you’re not signing something that puts you at a disadvantage later on if your developer decides not to deliver. 

Red Flags To Look For In Your Home Building Contract 

Since your building contract is legally binding, you need to make sure the terms work for you. The contract should include specific language about the details of the project, what materials will be used and where they’ll be sourced, how long the project will take, what warranties are available, and any special terms that both parties have agreed upon. 

When reviewing your contract, be sure to look for: 

• Misleading terms and conditions 
• Unfair payment schedules
• Hidden costs 
• Vague language 
• Missing details 
• Large upfront deposits 
• Arbitration or mediation-only agreements 

Ideally, you will be able to back out of the contract at any time and for any reason, but this may not be feasible. Make sure the terms are at least reasonable for you and that you won’t be stuck honoring your end of the contract while your developer is free to do as they like. 

Look for terms like “at developer’s discretion” or “unless otherwise noted,” which are phrases that essentially allow the developer to decide what they mean later on, depending on what will benefit them the most. 

Feinstein Real Estate & Business Litigation Law can provide you with comprehensive legal representation for your building project. Call now at 954-767-9662.

As relations between the United States and Russia continue to deteriorate after the U.S. joined Germany in pledging battle tanks to Ukraine in early February 2023, many people are wondering if this will worsen the impact that sanctions have already had on Florida real estate. Here’s what to know.

Seller Due Diligence 

Commercial real estate owners and sellers should be on the watch for Russian oligarchs or their family members attempting to evade American sanctions by investing in multifamily homes and retail property. 

There are a few things you can look for that may indicate this:

• The client is on the OFAC list of Specially Designated Nationals and Blocked Persons.
• The client is based in or has significant operations in a sanctioned country.
• The client tries to structure their purchase through shell companies or other entities to conceal their identity.
• The client is particularly interested in purchasing property in cash.
• The client is reluctant to provide information about their financial history or sources of income.
• The party has been involved in activities that violate U.S. export control laws or International Emergency Economic Powers Act (IEEPA).

If you have any suspicion that your client may be violating Russian sanctions, you should consult with an attorney before proceeding with the transaction. Violating sanctions don’t just have penalties for Russians – you too can incur civil penalties of up to $356,579 or double the amount of the transaction, whichever happens to be greater.

Strategies For Florida Real Estate Sellers To Mitigate The Impact Of Russian Sanctions

There are many ways that Florida real estate sellers can help mitigate the impact of Russian sanctions on their client base and bottom line. First, diversifying your client base can help you establish new relationships in different markets, so you can continue to do business regardless of how strict the sanctions against Russia get. 

Another strategy that Florida real estate sellers can use to mitigate the impact of the sanctions is to seek out alternative financing solutions. This could involve partnering with developers who are willing to provide financing for projects or working with lenders who are not affected by the sanctions. 

Feinstein Real Estate Litigation & Business Law is an experienced South Florida law firm that is committed to helping property investors and developers succeed. Call now at 954-767-9662. Serving Fort Lauderdale and surrounding areas.

If you’re a Florida property owner, it’s important to understand the basics of an implied warranty of workmanship. This warranty is typically included in construction contracts and protects owners if their home is not constructed according to the agreed-upon plans or specifications. Here’s what you need to know and how to get help from a construction litigation attorney. 

Defining An Implied Warranty Of Workmanship 

An implied warranty of workmanship is a legal promise that a contractor’s or builder’s work will meet certain minimum standards. In Florida, these standards are outlined in the state’s Building Code. The implied warranty of workmanship is “implied” because it is not specifically stated in the contract between the property owner and the contractor but is instead a legal requirement imposed on contractors by the state.

What Does The Warranty Cover?

Workmanship warranties generally cover any defects that arise within the course of construction, including both defects that arise from problems with materials to those that are the result of poor labor practices. For example, if a contractor uses subpar materials that result in damage to the property, the property may be able to file a claim under the warranty of workmanship.

Exceptions To The Warranty Of Workmanship

The warranty of workmanship does not cover every possible problem that could arise with a construction project. For example, problems that are caused by neither the contractor’s work nor the materials they selected are unlikely to be compensable under a workmanship warranty. 

Contractors may also not be liable for issues caused by developers whom they permit to proceed after a problem has been identified, or for problems that arise after construction has been completed that aren’t directly related to development. 

How A Real Estate Litigation Firm Can Assist You 

An experienced Florida real estate litigation firm can help you identify the causes of construction defects, who may be responsible, and offer sound legal advice on how to move forward. 

They can also assist with filing the necessary paperwork and negotiating with the contractor to ensure that you are given a fair resolution. Your attorney can assist with gathering evidence to support your claims, including photographs and statements, and can negotiate for a settlement in your favor. 

Contact Feinstein Real Estate Litigation & Business Law for a consultation to learn more by dialing 954-767-9662 or filling out our short contact form below.

Florida Governor Ron DeSantis (R) has signed a new law into effect following Hurricane Ian that allegedly aims to make obtaining property insurance easier and more affordable for home and business owners. But do these new policies really help, or are they leaving property owners with too little time to file claims for damages? Here’s what to know. 

What The Law Means For Property Owners 

Before this law was passed, property owners had as long as two (2) years to file a claim for damages to their homes or buildings. Now, owners must submit or reopen a damage claim within one (1) year to be considered eligible for coverage. Supplemental claims also used to have a three (3) year submission window, and now property owners have just 18 months. 

Owners also can’t sue their insurance companies unless they can prove their insurers defrauded them or otherwise acted in bad faith. This, unfortunately, leaves property owners at an unfair disadvantage when it comes to holding insurers accountable for inappropriate conduct.  

What The Law Means For Insurance Companies 

Of course, property owners aren’t the only ones who will be impacted by the new insurance laws. Insurance companies also have a few new regulations, primarily related to the efficiency and speed at which claims are investigated, settled, and paid. Insurers must also include if flood damage isn’t covered on the policy’s declaration page, and are required to offer substantial discounts to customers who opt into the arbitration contract and agree to mediate in favor of suing. 

Changes To The Assignment Of Benefits 

Perhaps the most concerning update to Florida’s property insurance laws is the discontinuation of Assignment of Benefits, which permitted contractors to conduct maintenance and repairs permitted by the claimant’s policy and directly invoice the insurance carrier for the costs. Builders would then receive payment from the insurance provider, which helped facilitate the process of filing claims for property owners. 

Property owners must now pay contractors up front for repair or reconstruction services, and have to send the receipt along with a detailed claim to their insurance provider for expense reimbursement. Because of this, customers will find it more challenging to use their insurance coverage to have property damages fixed, and many building owners won’t be capable of paying builders up front. This will undoubtedly leave many home and business owners with little recourse, even if the damage is technically covered by their policies. 

For help navigating property insurance claims in Florida, call Feinstein Real Estate Litigation & Business Law by dialing 954-767-9662.

Real estate transactions are complex and can involve a number of legal documents. When you’re buying or selling real estate, there are many things that can go wrong, even when you do everything you can to prepare and plan ahead. Fortunately, an attorney can help. Here’s what to know about common issues that come up during residential and commercial real estate closings and how a qualified lawyer can assist you.  

Common Closing Problems

One of the most common problems that can occur is a problem with the title to the property. If there’s a problem with the title, it can delay the closing or even prevent the sale from going through altogether.

Another common issue is a problem with the appraisal. If the appraisal comes in low, it can cause the buyer to back out of the deal or the seller to lower their asking price. And then there are the myriad of other potential problems that can pop up, like a lien on the property, zoning issues, environmental concerns, or even hidden damage that wasn’t disclosed by the seller.

All of these matters can be frustrating and costly, but fortunately, they can usually be resolved with the help of an experienced real estate litigation attorney. 

How to Prevent Real Estate Closing Nightmares

When closing on a piece of real estate, it’s important to take the appropriate steps to make sure you’re heading off any potential problems before they can manifest. Before signing on the final dotted line, make sure you:

• Read the forms or paperwork thoroughly, even the fine print
• Complete a title search and opt into title and property insurance
• Check the zoning of the property before your purchase to ensure it aligns with your intended property use
• Get a loan commitment in writing
• Hire a qualified real estate attorney before it’s too late 

Call a Florida Real Estate Law Firm Today

When you are buying or selling property, you need an experienced real estate lawyer or attorney to help you through the process. An experienced real estate lawyer can also help you negotiate the best deal possible and protect your interests during the transaction. They can also help you if there are any problems with the sale or purchase of your property.

Contact Feinstein Real Estate Litigation & Business Law today for a consultation by dialing 954-767-9662 or filling out our quick online contact form.

A group of leak and mold detection contractors in Florida has filed an appeal against a judge’s decision to dismiss a lawsuit alleging a new property insurance law is unconstitutional. Read about the case and how to get legal assistance with a real estate dispute below. 

Changes to Attorney-Fee Restrictions For Contractors 

Earlier this year, a lawsuit was filed against both the Secretary of the Florida Department of Business and Professional Regulation and the Florida Construction Industry Licensing Board for changing attorney-fee restrictions in a manner that allegedly violates the rights contractors have to equal protection, access to courts, and due process of law. 

The lawsuit was filed by the Restoration Association of Florida and Air Quality Assessors, LLC in May and heard by Leon County Circuit Judge J. Lee Marsh in August. At this time, Marsh dismissed the case, but not on the basis that the state had a right to make the aforementioned changes. Instead, Marsh ruled that the Licensing Board and the Secretary were not “proper defendants” because they lacked the ability to enforce the laws in question. 

Understanding the Assignment of Benefits 

Before the state updated the restrictions, contractors were allowed to recover any attorneys fees accrued from litigation with insurers to obtain payment for work that was authorized under the assignment of benefits. This means that a homeowner has signed over their insurance benefits to contractors as payment for work completed and the contractors must settle the claim with the insurer themselves. 

In many cases, this results in litigation when insurers attempt to deny legitimate claims. Now, the new changes to attorney-fee regulations prohibits contractors from recovering legal costs associated with bringing legal action against dodgy insurance companies. Homeowners may still sue for attorneys fees, but contractors who have been compensated with the assignment of benefits may not. 

Do You Need Legal Help With a Real Estate Dispute? 

Navigating any kind of litigation can be complex, especially when real estate contracts are involved. Don’t wait to get the legal help you need when involved in any kind of real estate dispute. Feinstein Real Estate Litigation & Business Law has the skills and expertise to provide you with comprehensive legal assistance. Reach out today to book a consultation to discuss your case or to learn more about how changes to Florida law might affect you by calling 954-767-9662.

A Boca Raton condo owner has been giving pushback against the forced sale of his property for nearly 30 years. Howard Fellman is the last individual owner at Crystal Palms – the rest of the 175 units are owned by real estate construction and property development mogul Scully Company. 

Scully Company has been putting pressure on Fellman to sell despite his long-established history of non-negotiation, and this time the law has been changed to potentially allow property developers to force the sale. 

Palm Beach County Judge Rules Condo Association Is Within the Law 

In 2021, the Crystal Palms voted to make it easier for the dissolution of its designation as a condominium. Once it is no longer a condo, Scully Company can oust Fellman whether or not he agrees. The only caveat is that he must be offered a fair market price for the property. 

Fellman tells the Palm Beach Post that it’s unfair a big company can force private owners like him to give up their homes. He says, “The condo laws were passed to establish procedures for unit owners to peacefully co-exist, not for an investor to confiscate private property. It’s as if Boardwalk is confiscating Park Place.” 

How Other Florida Property Owners May Be Affected By Fellman’s Case 

Other Florida property owners can expect to be impacted by the decisions made in Fellman’s case. Although he’s appealing the judge’s decision that Crystal Palms was allowed to make it easier to dissolve their condo designation, it’s expensive. Fellman says, “This is costing me a bloody fortune. There is no rainbow at the end of the road for me.” 

He’s continuing the fight for the benefit of everyone else who could face the forced sale of their properties if he loses. “My case will be used as a poster child for developers to confiscate property from condo unit owners. It will happen to anybody who doesn’t have the deep pockets to defend themselves, and happen mostly to senior citizens.”

Being Forced to Sell? A Florida Real Estate Litigation Law Firm Can Help 

If you are being pressured to sell property that you own by a corporate interest, take action to protect your investment. Contact Feinstein Real Estate Litigation & Business Law today for a consultation to learn what steps you can take next. Call now by dialing 954-767-9662.

Whether you are a buyer or seller, working with a real estate agent is usually a smooth and straightforward process. Most REALTORS® and other real estate agents conduct their behavior in a professional manner and any disagreements are often the result of an honest mistake or a break in communication versus willfully acting in bad faith.

Frequently, disputes between real estate agents and buyers or sellers can be mitigated with communication or mediation. If the parties cannot come to a resolution, buyers or sellers may be able to file a complaint with the Association of REALTORS® if the agent is a licensed REALTOR®. Below, we discuss how to handle a dispute with your REALTOR® and how to get the legal help you need in the event that you and your real estate agent are involved in a serious disagreement due to their potential violations of ethics codes.

REALTORS® Code of Ethics Defined  

REALTORS® must conduct themselves in a manner which adheres to the Association’s Code of Ethics. There are 17 Articles in the Code, which REALTORS® are expected to understand and abide by when they become licensed by the association. The Code is designed to provide buyers and sellers with a consistently professional experience and to ensure that customers are treated fairly according to the Association’s guidelines.

Real estate agents who are not REALTORS® are not beholden to the same ethics guidelines and it may be more difficult to hold these agents accountable for conduct. When a realtor is reported to the Association, the Association must decide if a violation occurred and the appropriate disciplinary action.

How to File an Ethics Complaint With the Association of REALTORS®

If you choose to file an ethics complaint with the Association of REALTORS®, it’s important that you do so as quickly as possible once you decide this is the action you want to take. You only have a finite window of time after the real estate transaction to file a complaint, usually within 180 days. If you do not file within this time frame, you may forfeit your right to file an ethics complaint at all.

Make sure your complaint includes which articles of the Association’s Code of Ethics your real estate agent violated, along with a narrative on how the Article was violated by the REALTOR®.

Call a Palm Beach County Real Estate Litigation Lawyer 

If you’re involved in a real estate dispute, get legal help from a veteran Palm Beach County real estate litigation attorney. Call Feinstein Real Estate Litigation and Business Law at 954-546-7862.

Six years ago, Florida condo owner Eileen Breitkreutz filed a request to review her condo association’s financial records, as is permitted by state law. What Eileen didn’t know though, is that the COA – Boca View Condominium Association – had the ability to not only fight this request, but file a lawsuit for Eileen to foot the legal fees accrued by the COA while fighting the request. 

A Florida judge ruled in the condo association’s favor and ordered that Eileen owes them almost $400,000 for the reimbursement of the association’s legal costs. Eileen was never able to review the financial records and now faces the possibility of bankruptcy and the sale of her home. 

Does Florida Law Support Home & Condo Owners? 

State law allows home and condo owners to request copies of the association’s financial records to ascertain how annual dues are being allocated in the community. However, many HOAs and COAs will fight owner requests for these records, presumably because the association has something to hide about where the funds are going and how they are being utilized.

However, there’s nothing in the state’s statutes that prohibit associations from fighting these requests in court with high-powered, expensive attorneys and receiving a judgment in their favor. 

This is precisely what happened to Eileen, who exercised her homeowners’ rights and was penalized for something she was legally allowed to do. Boca View Condominium Association was able to circumvent her request via the court system and then offload the costs of doing so. Because COAs and HOAs have the ability to litigate requests for financial records despite the law allowing owners to ask for them, it is often the association that comes out on top.     

Call Today For Experienced Florida Real Estate Litigation Representation 

Are you involved in a real estate dispute with your HOA or COA? Don’t wait to secure experienced legal representation to protect your best interests. You can be sure that if you’re going up against a home or condo owner’s association, they will have the best legal team your annual fees can afford and your chances of winning will be slim to none, even if you’re in the right. 

Call Feinstein Real Estate Litigation & Business Law today for a consultation at our Fort Lauderdale office by dialing 954-767-9662. We can help you protect your rights as a Florida condo owner.