Legal Question in Real Estate Law in Florida
Builder obligation
I have a friend that purchased a new condo and closed on it last year (2008) from the builder. He has been trying to sell the condo, but has not been able to primarily because the builder is now asking over $150K less for new identical units than what he paid for his. He understands the market has changed, but shouldn't the builder shoulder some of the responsibility and have offered to reduce the price on his unit instead of forcing him to close at the higher price when they knew they would be offering the same unit for much less? Might he have a basis for relief from the builder at least for part of the difference? Thanks for your help.
1 Answer from Attorneys
Re: Builder obligation
To put it simply, the developer is not responsible for the downturn in the market price of your friend's condo and bears to financial liability. Without sounding like I am insensitive to your friend's problem, lets ask the same question in reverse.
Lets say that your friend signed a contract two years ago for a unit and the prices have "appreciated" in value by $150,000.00 and the developer last year was selling the same type of units for $150k more. Would you friend think it was reasonable for the developer to come back and raise the price of your friend's unit at closing by $150k above the contract price?
When you sign a contract, you are agreeing to pay that price, and the developer is agreeing to sell for that price. Whether the market goes up or down, that is the risk one assumes for doing business.
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