what is the state statue that falls under returning of deposit for preconstruction home?

Asked by Bert, Miami, FL Sun Jun 1, 2008

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Christy Llan…, Agent, Coral Gables, FL
Tue Jul 1, 2008
We have had a few of our clients ask us this exact question because of the condition of today's market they are terrified to own a home or condo that a few years ago when they put the deposit down for pre construction seemed like a great idea since the market was on the up and up and now they could be facing foreclosure or cannot rent or sell it so they are faced with the question do I lose my deposit and cancel the contract or do I go through with the purchase and then potentially foreclose because I can no longer afford it. sell it or rent it.
A few of my clients have just lost their deposit and back out but you have to speak with your attorney about all of your options . Each case is of course individual.
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Fred Mateo, , Miami, FL
Thu Jun 26, 2008
Always have a real estate attorney read over a contract on a pre-construction deal. Go see one right now.
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Claudia and…, Agent, Florida, FL
Thu Jun 26, 2008
Take a copy of your contract along with any materials presented to you to a real estate attorney for advice.
I have had clients who were able to get their entire deposit returned due to language in the contract including timelines for the developer. In some cases the developer has failed to meet their contractual requirements and therefore you may be entitled to a return of your deposit. Again find a good real estate attorney and consult with him. There are many who are specializing in contractual disputes with developers due to the declining market and the glut of preconstruction condos.

I have a truly great attorney if you would like to email me I will put you in touch with his office.

The Willard Realty Team.
Web Reference:  http://willardrealtyteam.com
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Wenceslao Fe…, , 33140
Mon Jun 2, 2008
I'm afraid the statute is in the fine print of your contract. Bring it to a competent real estate attorney. You will need both.

Before going crazy, evaluate why you'd want to do this. The cost of recovery may not be worth your while so, ask many questions, then choose the best of all evils.

Too bad you're at this juncture. Hope you can remedy the situation with the builder before (or even without) going though legal channels. Perhaps you can find a buyer for your contract?

Wenceslao Fernandez Jr, BS, CDPE
Keller Williams Realty
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Mott Marvin…, Agent, Sunny Isles Beach, FL
Sun Jun 1, 2008

I'm not so sure that there is a "statute" that pertains to returning a deposit made to a developer for the purchase of real property. The contract between a buyer and seller (developer) should address exactly how and when a deposit may be returned. Failure to perform a specific condition, for example may entitle a buyer to a return of a deposit.

Another reason for entitlement may be a material change in the design, amenities, number of units, quality of construction, etc. Obtaining a refund of a deposit usually requires a good and valid reason. Of late, many law firms and attorneys have started to practice a legal specialty know as "Deposit Recovery".

Developers have thier contracts written by lawyers and the contract is written in favor of the developer, naturally. There may be valid grounds for a return or forfeit of a deposit.


Below is a link to Florida Statutes
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Cathy Sloan, Agent, Jacksonville, FL
Sun Jun 1, 2008
Your question is not clear. Not sure what you are asking.

Are you asking about an escrow deposit that falls within the refund of deposit guidelines of your purchase contract?

Or are you asking about the return of your deposit because you are terminating your agreement for reasons other than those allowing the return of you deposit per the purchase contract?

Your purchase contract has several clauses addressing the refund of your escrow deposit. There are state statues that addresses the handling of escrow deposits.
Web Reference:  http://www.cathysloan.com
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