South Florida’s real estate industry could soon see another wave of litigation, according to Jason Kellogg, a partner at Levine Kellogg Lehman Schneider + Grossman.
“The biggest flashing red light, in my mind, is simply the fact that a significant amount of new construction involves condominiums,” Kellogg told GlobeSt. “Historically, condominium construction just breeds litigation. Nearly 100 new condo buildings are either under construction or proposed in the greater Miami area alone.”
Kellogg added that he anticipates a boom in condominium defects litigation due to the sheer amount of condominium construction, coupled with reports of a shortage of skilled workers.
“There has also been speculation of a growing condo bubble,“ Kellogg said. “If that bubble bursts, then we will see another round of the attendant litigation: buyers trying to get out of their contracts, lenders foreclosing on developers, and developers seeking bankruptcy protection.” [GlobeSt] – Christopher Cameron