This entry was posted on Thursday, September 6th, 2007 at 1:47 pm and is filed under Housing Bubble. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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September 6, 2007
Buying a new construction can be dangerous. Generally a new condo is contracted to be purchased for a set price, which can prove dangerous if the home prices plummet before the home is even completed.
Two large condo groups are currently the target of a large class action lawsuit taking place in Florida. Within the suits, the buyers allege that they were misled regarding the outrageous monthly HOA community fees, and suffered long construction delays.
Law.com references the case as follows:
They claim Related raised the condo association’s operating budget by more than 65 percent between contract signings and completion. The monthly maintenance fee for Meyerovich’s unit jumped from the initial estimate of $748 to $1,240, according to Cooper.
Under state law, buyers are allowed to cancel condo purchase contracts if “material and adverse” changes are made to condo documents filed with the state. But state regulators and developer’s attorneys disagree about whether higher maintenance fees open the door on rescission.
Did I read that right? More than $1200 a month JUST in HOA fees? That’s ridiculous, nuts, highway robbery, insanity…I lack the adjectives to describe a home owner’s community fee that exceeds my monthly mortgage.
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