Florida Law Could Allow Condo Buyers to Cancel if Developer Makes Changes

 
Some people are skeptical of buying pre-construction condos in Miami because of the uncertainty of the final product. Purchasing off of a brochure or floor plan can be scary. Of course this is understandable, but I hope you realize that if the developer changes anything that would negatively affect the value of your condo, there is possibly a way out!

§718.503, Fla. Stat. (Developer disclosure prior to sale; nondeveloper unit owner disclosure prior to sale; voidability) provides:

(1) DEVELOPER DISCLOSURE.—

(a) Contents of contracts.—Any contract for the sale of a residential unit or a lease thereof for an unexpired term of more than 5 years shall:

1. Contain the following legend in conspicuous type: THIS AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 15 DAYS AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE BUYER, AND RECEIPT BY BUYER OF ALL OF THE ITEMS REQUIRED TO BE DELIVERED TO HIM OR HER BY THE DEVELOPER UNDER SECTION 718.503, FLORIDA STATUTES. THIS AGREEMENT IS ALSO VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 15 DAYS AFTER THE DATE OF RECEIPT FROM THE DEVELOPER OF ANY AMENDMENT WHICH MATERIALLY ALTERS OR MODIFIES THE OFFERING IN A MANNER THAT IS ADVERSE TO THE BUYER. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT.

Layman’s Terms

Quite simply, if the developer changes something that could hurt the value of your unit(s), you could cancel if you give the developer notice in writing within 15 days of the date the developer gave you notice of the changes. Now, this isn’t a cut and dry thing.  Developers would argue that some changes are meant to benefit, not negatively affect the condos. However, everything is an argument when it comes to the law. And, rightfully so, if changes are made that you do not like and isn’t what you “signed up for,” then you should be able to cancel. Your condo purchase should conclude with the finished product being exactly as you had purchased.

For example, one of my clients purchased a condo at Brickell Heights. This client recently received a letter from the developer advising of a change in the layout of the unit he is purchasing. My client is debating whether or not to cancel his contract because the specific layout change could adversely affect the value of his property…I say “could” because there is an argument to be made either way. This client would have to argue his points, but with a good attorney, he could have an “out” if he wanted.

The point of this article is not to scare anyone, it is to make buyers of pre-construction condos in Miami feel more comfortable with the process and put them at ease. New construction condos are highly regulated, and developers do have many laws that they have to abide by in all stages of development.

Disclosure: I am not an attorney. The information contained herein is for informative purposes only and not for the purposes of giving legal advice. The information herein should not be relied upon under any circumstances.