Condo attorney: hard to tack cash to buyers

Miami /
May.May 17, 2013 02:00 PM

The engine of South Florida’s factory-like condo production is what Carlos Rosso, head of condo development at the Related Group, touted in The Real Deal’s roundtable Thursday as a “new type of contract.”

Developers like Rosso are asking buyers – mostly wealthy and foreign – to cough up as much as 80 percent of a condo’s sales price, months before construction begins. “The world has changed. We’re coming back from a huge crash,” Rosso said.

Gary Saul, a leading South Florida condo attorney who represents Related as well as mega-developer Terra Group, told the South Florida Business Journal that developers are contriving ways to protect against another wave of buyers pulling out en masse.

“We got a real clear message that a buyer will walk away from a 20 percent deposit,” Saul said in an interview with the Journal.

“You want to know that the buyers are for real, and you sort of want to make sure they are the actual buyer,” Saul said, adding that his clients had buildings 100 percent contracted but only 10 percent closed.

However, tracing the cash back to an individual is nearly impossible in today’s real-estate climate, Saul said.

“If there was a law requiring a sale to a human being, you would lose a lot of South American buyers.” [South Florida Business Journal]Emily Schmall


Related Articles

arrow_forward_ios
Merrimac's Dev Motwan, Aria’s David Ardit and Merrimac’s Nitin Motwani with rendering of 600 Miami Worldcenter (LinkedIn, Miami Worldcenter)
Aria, Merrimac nab Miami Worldcenter site for $18M
Aria, Merrimac nab Miami Worldcenter site for $18M
Jon Paul Pérez with an aerial of Fisher Island (Google Maps)
Related ups ask for planned Fisher Island penthouse to $90M
Related ups ask for planned Fisher Island penthouse to $90M
Gil Dezer and a rendering of the Bentley Residences (Dezer via Sonya Revell, Bentley Residences Miami)
Dezer scores $40M loan tied to planned Bentley Residences
Dezer scores $40M loan tied to planned Bentley Residences
Douglas Elliman’s Jay Parker, Witkoff's Alex Witkoff, Monroe Capital's Ted Koenig and a rendering of the 1901 Collins Avenue (Douglas Elliman, Witkoff, Monroe Capital)
Elliman to lead sales of Witkoff, Monroe’s Auberge Shore Club project
Elliman to lead sales of Witkoff, Monroe’s Auberge Shore Club project
Aria's David Arditi with rendering of 501 Residences (Aria Development Group, Getty)
Aria JV scores $81M construction loan for downtown Miami condo project
Aria JV scores $81M construction loan for downtown Miami condo project
From left: Bel Invest's Maximillian Beltrame, Mast Capital's Camilo Miguel, and PMG's Ryan Shear (Getty; Illustration by Kevin Rebong for The Real Deal)
Life after FTX: What happens to the crypto buyer pool now?
Life after FTX: What happens to the crypto buyer pool now?
Billy Fuccillo Jr. with rendering of Ritz-Carlton Residences (LinkedIn, Ritz-Carlton, Getty)
Car dealer buys condo at Ritz-Carlton Residences, Miami Beach
Car dealer buys condo at Ritz-Carlton Residences, Miami Beach
South Florida real estate players gear up for recession, but remain optimistic
South Florida real estate players gear up for recession
South Florida real estate players gear up for recession
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...