Legal Question in Real Estate Law in Florida
Preconstruction Scam
I, and a group of investors, were sold preconstruction deals with $80K-$100K in equity that we would sell immediately after construction for the profit. (''You'll never have to make a payment!'')
The appraisals show the 80-100K equity but it turns out the homes are actually worth $150K less than the appraisal stated (at the time of the appraisal.) The appraisal has ''misinformation'' such as incorrect proximity to subject (much further away), golf course and water homes (mine is not), cost estimate figures from 2005 (boom prices) and more.
The builder was supposed to (verbally) pay for closing costs, realtor commission (they should anyway), interest during construction and a free pool. Instead, these costs were added to my loan (and disbursed to the builder to pay me.)
The loans were incredibly expensive with horrible terms, the realtor owns the title company, wouldn't send us our closing docs, lots of fishy stuff going on.
Can I get out of these deals (I have 2) due to fraudulent pretenses, namely the appraisal being so inaccurate? (I wouldn't have purchased a home for $500K that was really worth $350K had I known that.)
2 Answers from Attorneys
Re: Preconstruction Scam
Sounds like a scam to me. Would need further info and to read all documents to advise further.
Re: Preconstruction Scam
If I understand you correctly, for $80-$100,000 you were to get a new house worth $500,000. Sure it is a scam! Why should they give you such a great deal when they could keep much more of the profits; how are they going to build a house for $100,000 that is worth more than $120,000?
Contact all involved and find out how they intended to fulfill their promises and start canceling all of your ties. The group of investors should hire an attorney as you are going to be dealing with several groups of defendants or people/entities that will want their money from you.
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