Another Miami Condo Lawsuit

February 8, 2008 by Lucas Lechuga

50 Biscayne

CBS4’s correspondent, David Sutta, reported tonight about yet another lawsuit involving a Miami condo developer. The lawsuit was filed against the Related Group of Florida by contract holders who decided to walk away from their 20 percent deposit at 50 Biscayne. Apparently, the contract agreement stipulates that contract holders are entitled to 25 percent of their deposit money if they decide not to close. The lawsuit was filed because this money was never returned.

From the details that I’ve heard about the lawsuit, the plaintiff has a strong case against the developer. It seems to be a simple oversight in not including certain language that may have otherwise protected the developer. We shall see if condo litigation specialist, Beck & Lee, will be successful in getting their clients their money back.

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43 Comments on "Another Miami Condo Lawsuit"


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Anonymous
Buy Buy
8 years 7 months ago

I think this is just the START of many many more lawsuit’s in 2008??What do you think?

Anonymous
cyrus
8 years 7 months ago

funny….i just read a week or two ago that Related was going after realtors for the commissions they paid on ‘investors’ that never closed on their condo.

welcome to america – the land of lawsuits.

Anonymous
Buyer Tom
8 years 7 months ago

2008 is going to be THE year where the price breaks in real estate in South Florida. We have already seen an acceleration in the rate of defaults and price declines and there is more to come with the continued resets of ARM’s and more current owners upside down on their mortgages. Credit has tightened, interest rates are still higher than 2004-2005, real estate prices are in decline…it will get ugly. Sometime in late summer-fall there will be a big slide. That is my conclusion.

Anonymous
Perez
8 years 7 months ago

That partial return of deposit provision is odd. I would think Related would use similar contracts for all of their developments, and this would affect condos other than 50 Biscayne.

Could any purchasers of other Related condos let us know?

I’m surprised people are so willing to walk away from $100,000+ deposits without a fight. Usually there are some changes, which the buyer could allege are material; maybe Related provided a perfectly-conforming condo on time, in which the buyer should close or lose their deposit.

Cyrus, info on the Related v. agents lawsuit is available at

Anonymous
brian
8 years 7 months ago

At then end of the CBS article. Does that mean 200 buyers walked away from 50 Biscayne? That is a HUGE number.

Anonymous
Buy Buy
8 years 7 months ago

I’m with you BUYER TOM….in total agreement with what your theory is.Could you believe that I had a realestate agent that didn’t want to write an offer on a condo last week because it wasn’t FULL PRICE.The building is 3/4 for sale and she had the nerve to tell me the seller might RAISE his price.I might even write a FULL STORY on here about that one……discusting.

Anonymous
guillermo
8 years 7 months ago

Lucas,any new news on ONYX ON THE BAY??.
Does the developer still has the building??,or Corus bank took it??.

Anonymous
Buyer Tom
8 years 7 months ago
The reason for my “dire” conclusion is that the number of owners at the “margin” are piling up. The “I don’t want to” and “I can’t anymore” hold onto this property owners are becoming a larger pool…..I see this in the “for rent” units where owners are anxious to get it rented even at 1/3 the cost of ownership (on a cash basis, not including potential price appreciation or depreciation as the case may be). Moreover, people, perhaps hundreds, gladly walked away from 15% (actually what many thought was 20%!) shows the extent to which people are RUNNING from buying… Read more »
Anonymous
Buyer Tom
8 years 7 months ago

Lastly, if the desire to rent isn’t even there, then how can the desire to own be any better?

Anonymous
ana
8 years 7 months ago

i would like to know the status of your lawsuit. has the developer backed off?

also, i am in south florida this week. i would be interested in seeing some of these condos.

what is the best way to contact you lucas?

Anonymous
Buy Buy
8 years 7 months ago

Hello BUYER TOM did you find out where the forclosure’s are listed yet? Let me know on here and I can direct you to all the NEW one’s coming out EVERYDAY.

Anonymous
Buyer Tom
8 years 7 months ago

Buy Buy – Nope, I don’t know where the foreclosures are listed. Would be interested in seeing them and the recent trends. My guess is a lot of people will continue to get beached as the tide rolls out….

Anonymous
Buy Buy
8 years 7 months ago

Buyer Tom try dailybusinessreview.com then go to public notice’s and then scroll around for forclosure’s.You have to put in the date’s and you can find every forclosure in Dade Broward County .You’ll probably find a lot of other very interesting info.there as well. Good luck.

Anonymous
Lawsuit Charlie
8 years 7 months ago

lucas,
can you list lawsuits with each development?

I just toured a property recently. The trash chutes were not the more up to date electric recycling chutes. Just a normal chute, shove it all down together. Is this a negative in a building if they don’t do recycling? Do you know of any higher end building that do not do recycling?
thanks……………
Lawsuit Charlie

Anonymous
8 years 7 months ago

Guillermo,

I think the developer still owns the units. The remaining units are still being shopped around to be purchased by a bulk buyer.

Anonymous
Un-Related
8 years 7 months ago
Sunday afternoon and the Miami Hearld has not touched this….Gourge Perez must buy too much ad space. Either that or the Hearld wouldn’t want the public to see the story “Related Lawsuit” on the same day they featured Related in the “Michell Spence-Jones Bribery Investigation ” story….. If you want a snapshot on Gourge’s current legal backlog, go to: http://www.miami-dadeclerk.com/civil Select: “Standard Case Search” Type in TRG as “Party Name”. You will find 80+ OPEN LAWSUITS against Harbour House, Hallandale Beach III, Desert Inn, Loft II, and Sunny Isles VII. The 50 Biscayne suits have not yet been posted. Ole… Read more »
Anonymous
Buy Buy
8 years 7 months ago

UN-RELATED your sure doing your homework.I can’t believe the lawsuit’s that they are involved in.I can imagine how many OPERA HOUSE is involved in and will be in shortly.Miami better expand the court house to keep up with the demand.

Anonymous
Lawsuit Charlie
8 years 7 months ago

please list blog of buiding lawsuits

Anonymous
8 years 7 months ago

I’m looking to relocate to Miami. I own a unit at 50 Biscayne that I closed on last October. I’ve have no problem whatsoever renting it out to cover my costs. I love the building and area so much i’m currently looking to rent a unit down there until my current tenants lease is up. Miami is hott and will only get hotter. The idiots who now want out of their contracts should of never purchased in the first place!

Anonymous
Perez
8 years 7 months ago

Most of the lawsuits seem to be against the Harbour House project. What’s up with Harbour House? That’s a great location, and project looked very promising.

There seem to be about 9 suits involving 50 Biscayne. These two projects seem to make up most of the suits against TRG. Other than these two projects, I’d say considering the # of units they’ve developed, things have been pretty smooth and profitable for TRG; of course, market prices have changed and additional lawsuits may cut into those smooth profits.

Anonymous
Buy Buy
8 years 7 months ago

Hi Lucas,will you be re-activating the PROPERTY SEARCH feature on this blog? I like that a lot and hope you bring it back. Thank’s and keep up the good work.

Anonymous
8 years 7 months ago

Anyone habve a final count on how many depostis where “lost” or didnt close on 50 Biscayne?

Anonymous
Un-Related
8 years 7 months ago
Lucas, It is a shame that you let the “put a helium hose in the dead-market’s backside and reinflate it” crowd get the best of you when you “pulled” the posts of Drew and I regarding the legal verbage of Related’s contracts. Fact is, I was looking at one of those contracts when I posted what I did. My explanation of the escrow requirements regarding deposits in excess of 10% of purchase price was also dead on the money. My citation of the Miami Herald article regarding : “The Condo King” is what it is….a newspaper article dated April 18,… Read more »
Anonymous
8 years 7 months ago

Un-Related,

I didn’t pull any comments. A few comments may have been lost in the process of transferring my site to a new server when my developer did the latest updates.

Feel free to repost the comment. What day did you post the comment?

Anonymous
8 years 7 months ago

Un-Related,

I think more than a few comments were actually lost. I think this post had over 30 comments on it a few days ago. I’ll have my developer see if he can locate them on the old server. It may take until tomorrow, however.

Anonymous
CA
8 years 7 months ago

Un-Related,
what section of regulation 718 states that 50% of your deposit exceeding 10% must be refunded ? I remember seeing it in your “lost” comments . Marina Blue is also refusing to refund any money even it is spelled out in their contract. I know a dozen of people have sued them.

Anonymous
CA
8 years 7 months ago

Josh Cahill,
Do you have a 1 or 2 br? I am trying to decide whether to close in MB but am having problems with rent only covering my mortgage..HOA and property t of 2.25% will be my negative cash flow ($20K a year). I am surprised that you can cover your cost renting out …How much rent can I get for a 2br on a high floor ,around 1100 sqft ?

Anonymous
Un-Related
8 years 7 months ago

Lucas,

You asked: “Feel free to repost the comment. What day did you post the comment?”

My post was made on February 12 in the early afternoon. It was in response to the post by Drew.

Anonymous
Drew
8 years 7 months ago

Lucase, we were discussing whether Fla Stat Ch 718 specifies that a developer must return portions of a deposit in excess of 10% even if the buyer defaults. Some of us indicated that we were unaware of any such provision; but I am aware that if a developer uses more than 10% of a buyer’s deposits towards construction then a disclosure must be made to the buyer. I still would like to know if Related’s contract language tracks the statute- I do not think it does.

Anonymous
Lucas Lechuga
8 years 7 months ago

Un-Related,

My developer transferred my files from my old server to my new server at around 4:30am on February 12. It can take up to 24 hours for the DNS to propagate. Basically, your network was probably still looking at the old website when you made those comments. I will have my developer find those comments tonight and repost them. I was wondering why I didn’t have many comments yesterday.

Anonymous
Laurent
8 years 7 months ago

miami only way out of their problems: cancel property taxes once stupid people lost money

Lol…developers got us all and they re the one who will get this approved by the government through lobbying

Anonymous
Julian
8 years 7 months ago

CA – I think Cahill is ‘joshing’ with you…

Anonymous
emma
8 years 5 months ago

What about the Related Groups new project in SoFi, The Viceroy? Any news on this project? Still moving forward?

Anonymous
terry black
8 years 5 months ago

d.oes anyone know of any problems with continuum ll miami beach, complaints,suits,
number of units sold, discrepencies ie square foot measurements. please mail me with anything at all related to this project. thanks

Anonymous
doctor bee
8 years 4 months ago

has there been any news on the status of icon brickell. i bought in 2005 but would prefer not to close. i’m sure i’m not alone, do we have any options?

Anonymous
DEEP
8 years 4 months ago

I bought at Icon Brickell in 2005 and I´m not sure if I´ll close in December.

Anonymous
renting
8 years 3 months ago

hello! i have found this site extremely interesting and am hoping for a little advice. we are needing a 2-2 and currently live and would like to stay around the bay: quantum, 1800, or north at midtown or blue. what if any concerns are there with any of these buildings? thank you! also, what % under listing would be a good start?

Anonymous
doctor bee
8 years 3 months ago

i heard that if you haven’t closed on your property and you signed your contract as part of a pre-construction deal, florida law allows you to recoup your deposit if in two years your property is not ready….anyone else heard of such a law?

Anonymous
Un-Related
8 years 3 months ago

doctor bee,

I believe that applies to projects of less than 100 units, provided the contract does not have a “finish-by” date in it. The big developers usually give themselves 3-4 years.

Anonymous
renting
8 years 3 months ago

quantum is a very nice building and improving everyday. I believe it will be a success.

Anonymous
Mane
8 years 3 months ago

any comments on Isola at Brickell Key?
I have a friend who lived there and liked a lot and I will move from Chicago….rent

Anonymous
eric
8 years 3 months ago

Is there any more info on the related groups lawsuits against realtors?

are they going to proceed against them in ongoing projects, like trump 1,2,3 or icon brickell?

any inside info you may have would be helpful.

i noticed that a number of cases against real estate companies over “advanced” commissions have been dismissed, as in the south florida business journal article…

it would great to know their intentions

Anonymous
Jean
4 years 8 months ago
Just wanted to let you know about an experience that I had at Icon Brickell tonight. I will try to make it short. I am a professional here in south Florida. I have lived in south Florida most of my life.I was just appreciating the beauty of the area and how finally the downtown area is getting some character . I was blown away in the treatment that a friend of mine experienced at Icon Brickell. She passed out while waiting in line to go into a lounge. She was carried into the lobby. I asked the person who I… Read more »
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