Legal Question in Real Estate Law in Florida

buying a townhouse that is a short sale

this complex is unfinished. the developer is still maintaining property, no homeowners assoc yet. 15 sold, 9 passed, many still for sale. upscale units very nicely built, sell for 650,000, this short sale is 250,000, great deal? what can happen if the developer goes bankrupt and i own this unit?


Asked on 9/30/08, 8:50 am

2 Answers from Attorneys
Philip Duvalsaint Philip A. Duvalsaint, PLLC

Re: buying a townhouse that is a short sale

A lot. You really need to look over the contract to see what the developer's obligations are and how/when you can terminate the contract. For example, some contracts call for a certain level of occupancy or the developer is in breach. This protects buyers from excessive Condo Association Fees which are typically based upon the number of owned units. You should consult with an attorney before signing anything.

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Answered on 9/30/08, 10:41 am

Re: buying a townhouse that is a short sale

Your risk is that the condo association may have problems, that there are unfinished units that the lender will either sell to another developer. More information is needed to anticipate all of your questions. Also, you would be better-off asking the same question of a FL attorney.

If all the units are complete, then the issue will be what common area amenities will not be completed and how things will impact your condo association. Make sure you understand all the rules and regs and title issues related to the condo and I would have a FL attorney review the documents and the transaction for you.

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Answered on 9/30/08, 11:05 am


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