Deposit Recovery Claims Attorney
Are you having a difficult time recovering your real estate deposit? A real estate attorney can help. With the real estate industry in crisis, projects delayed, stalled, or just cancelled, and financing nearly non-existent, a major ordeal has surfaced that effects hundreds of thousands of Americans, from first-time home buyers to real estate investors and flippers. What happens to the deposit that I gave the builder or developer when I signed the purchase contract?
The answer will likely depend on the exact language of the contract and the applicable law. Likely, the state law where the project is located will apply, but there is also federal law, primarily the Interstate Land Sales Full Disclosure Act, and depending on the nature of the sales process, the state law where you resided when you negotiated the contract could apply. For this reason, it is vital that you speak to a real estate attorney with experience in this area to determine what your legal rights are.
Other factors also impact this analysis, including whether the real estate was part of a project that was never started, whether proper disclosures were made about critical aspects of the project, and whether the developer made material changes to the condominium or homeowner association documents.
Many buyers assume that the developers’ contracts are “bullet-proof” because the developers hired the “biggest law firms” to prepare their contracts to protect them and because the sales person informed them that the contract terms were non-negotiable. Most pre-construction contracts, however, susceptible to effective challenge and thus are anything but bullet-proof. Many developers’ in the recent real estate boom either over-looked, or simply disregarded laws designed to protect consumers (purchasers like you). These laws very often permit the purchaser to cancel the contract and receive the return of his or her deposit.
Many developers also gave purchasers draft offering condominium documents in the sales process that were later rejected by the state regulatory agency, thereby permitting buyers to revoke their contracts. Similarly, some developers made changes to the projects and the offering documents, while others violated the federal Interstate Land Sales Full Disclosure Act either of which may give rise to the right to cancel the contract and receive the return of your deposit.
Lost Real Estate Deposit? Contact a Deposit Recovery Attorney
right away! It is critical that purchasers who want to recover their deposits act immediately. It is also critical that those wanting to recover their deposits protect the portions of their deposits remaining in escrow by not ignoring closing letters and default letters from the developer. You should speak to an attorney to protect your rights, and your deposits in escrow, immediately upon receiving closing or default letters from the developer.