Rather than close on condos that are worth less than the purchase price, some investor are turning to the courts to get out of their contracts.
Destin real estate attorney Craig Tingle told The Log that while he has seen some local efforts to get out of condo purchases with a lawsuit, “there’s significantly less than it has been in South Florida, particularly Miami, where they had a huge condominium boom. Most of the condominiums didn’t go through (and) in some cases that down payment had already been spent.”
Florida condominium prices have dropped 22 percent since 2005, according to the Wall Street Journal, and haven’t bottomed out yet.
That gives buyers — particular investors who hoped to profit from a quick resale — an incentive to wriggle out of the deal rather than close on the condo or walk away from their deposit. The Journal says the courts haven’t been sympathetic.