The Real Deal Miami

Underwriters freeze sales at Boynton Beach’s Promenade

February 13, 2012 03:00PM

The Promenade in Boynton Beach

Title insurers have effectively frozen sales at the 318-unit Promenade condominium in Downtown Boynton Beach, the Palm Beach Post reported.

The developer of two-tower, 14-story project near the intersection of Federal Highway and Boynton Beach Boulevard, Boynton Waterways Investment Associates, has lost several judgments in court in recent months, forcing it to refund down payments to buyers. The judgments stem from a ruling by the Palm Beach County Circuit Court that said the developers improperly held buyers’ escrow money.

About 10 judgemnts have been entered so far worth $1.45 million, and nine more are in the works, according to attorneys on the case. The developer has already filed some appeals, meaning that closings can’t continue at the condo.

In the meantime, Fidelity National Title Group sent a letter late last month to its Florida offices warning them not to underwite units in the building. [Palm Beach Post]