0 Comments | Palm Beach Post, Nov 11, 2007 | by Alexandra Clough
The buyers’ remorse crowd keeps growing.
The latest addition: Pre-construction buyers of the luxurious 2700 North Ocean Boulevard condominium being built on Singer Island.
Several buyers are making last-minute attempts to undo their million-dollar purchases just as the condo nears completion and closings are on the horizon.
Since the real estate market tanked, many condo buyers have turned to the courts to undo their pre-construction contracts so they do not have to complete their purchases. Often, these lawsuits hinge on a Florida law that allows a buyer to void a purchase contract if a developer make changes a buyer considers “material and adverse.”
But there’s a twist with 2700 North Ocean, being built by high- profile developer Dan Catalfumo.
In order to win Riviera Beach’s blessing for the 27-story, twin- tower project, Catalfumo had to make 100 of 242 units into hotel suites. When 2700 North Ocean sales first started a couple of years ago, some buyers complained they were not being told they were buying a hotel suite. Attorney Brad Eavenson, for instance, backed out of a reservation when he discovered the hotel disclosure buried in Exhibit F of a 61-page document.
“This guy called me up and told me he clearly told the sales agent he was going to live there full time,” said Juno Beach attorney Gary Nagle, who specializes in helping buyers undo purchase contracts. Nagle said his client recently realized he was buying a restricted hotel suite. A restricted suite means an owner cannot make the property a primary residence and apply for a homestead exemption.
Now this buyer – and six others – want out of their deals, Nagle said.
Nagle plans to file lawsuits this week seeking the cancellation of the purchase contracts and the return of the 20 percent-down deposits.
Easier said than done. Catalfumo is disinclined to let anyone out of the deal.
“Bring it on,” Catalfumo said in an interview last week. “I’ll see them at closing. They’re not getting out.”
Catalfumo said he’ll let his Greenberg Traurig attorneys worry about the legal stuff. But he added that all proper disclosures were made to buyers, and no changes were made to the condo that would fall under the Florida law.
It’s no surprise these issues are being raised just as 2700 North Ocean approaches its January completion
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