Developers Trying to Back Out of Selling New Naples Homes
The booming Naples real estate market has brought a new threat to buyers interested in buying preconstruction Naples homes. Many complaints lodged by would-be buyers accuse "developers of playing fast and loose with contracts."
Some developers string along buyers by having them sign contracts and and make deposits on Naples homes, only to back out of the contract when property values increase and the units can sell at a higher price.
One example of such dishonest practices involves the class action suit that home buyers have filed against Technical Olympic USA. Plaintiffs claim that TOUSA cheated them out of more than 100 single-family Naples homes promised them in a development project called Reflection Lakes because "the properties each increased ´by over $75,000 in value` while they waited to close on contracts that were ultimately canceled."
In order to avoid being sued, developers are now including all kinds of loopholes in their contracts, including "termination clauses if construction isn´t started by a specified date or if the developer can´t get financing." Buyers can only protect themselves "by doing due diligence on a developer and scrutinizing a contract to understand" the developer´s leeway when it comes to his Naples homes.
Some developers string along buyers by having them sign contracts and and make deposits on Naples homes, only to back out of the contract when property values increase and the units can sell at a higher price.
One example of such dishonest practices involves the class action suit that home buyers have filed against Technical Olympic USA. Plaintiffs claim that TOUSA cheated them out of more than 100 single-family Naples homes promised them in a development project called Reflection Lakes because "the properties each increased ´by over $75,000 in value` while they waited to close on contracts that were ultimately canceled."
In order to avoid being sued, developers are now including all kinds of loopholes in their contracts, including "termination clauses if construction isn´t started by a specified date or if the developer can´t get financing." Buyers can only protect themselves "by doing due diligence on a developer and scrutinizing a contract to understand" the developer´s leeway when it comes to his Naples homes.
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