A state appeals court has offered South Florida condo buyers some relief in the form of refunded deposits for units in developments caught in the real estate bust. Buyers whose contracts include a liquidated damages clause are entitled to 25 percent of their money back, the Third District Court of Appeal said, even if they are eventually are found to be in default. The decision backs a Miami-Dade Circuit Court ruling in a case filed by attorney Robert Cooper against Terra Group, in which about 20 buyers put down $80,000 each in deposits on units at Quantum on the Bay in Miami. They later backed out of the deal, saying the developer did not deliver on promised amenities and monthly maintenance. The latest ruling could have a major impact on condo buyers elsewhere, according to Joseph Altschul, an attorney who is representing buyers trying to get out of their contracts at Trump International Hotel in Hollywood. [SFBJ]

Buyers at CityPlace South Tower who fear their deposit claims could be
wiped out in foreclosure proceedings were dealt a legal setback when a
judge denied their request to allow them to settle claims before
finishing the proceedings. Buyers’ attorneys Joseph Altschul, Jonathan
Kline and Robert Cooper said their clients will have little chance to
have their claims honored by the Related Group under the so-called
friendly foreclosure underway with Bank of Nova Scotia, the lender to
the project. Bank of Nova Scotia was the only bidder in the
$120 million foreclosure, taking 370 unsold units at the 420-unit
CityPlace building with a minimum $100 bid. [more]