Business: Buyers file suit to back out of condo deals before completion

In what could be a sign of things to come in the sluggish housing market, a prominent Tampa condominium project faces 34 lawsuits from buyers trying to back out of their deals.

The Place at Channelside, along with about a dozen other condo projects, has led a residential renaissance of the city. But unlike some pie-in-the-sky deals like Trump Tower Tampa, the Place at Channelside is weeks from completion.

That's the problem: Some buyers who paid top dollar in 2004 and 2005 are afraid to take possession of what they fear is a depreciating asset in the housing slump.

"They locked in at the height of the condo boom and the units are not worth what they paid, " said Tampa lawyer Harry Coe, who represents seven buyers.

Coe's clients put down deposits from $35, 000 to $40, 000. To justify the 11th-hour jitters, buyers have invoked a federal law requiring completion of condos from two years of the contract date.

Key Developers Group started construction in April 2005 on the 245 units in two, eight-story buildings at Channelside Drive and Washington Street. Buyers sued after the two-year deadline expired.

Developer Fida Sirdar said construction was knocked off schedule by Hurricane Katrina, a PVC pipe shortage and soil problems. Condos, which cost about $180, 000 to $1.5-million, start closing June 18.

Sirdar blamed the suits on a small group of buyers acting in bad faith. "They will either have to buy or forfeit their deposits. It's as simple as that, " he said.

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by Drew	10/27/07 09:30 PM
Bottom line, the prices at the Place will level out in the next few months after these lawsuits conclude and after the market continues its downward trend. Sellers and developer must accept fact that prices will level around 190-220 a sq. ft.

by Drew Part 1	10/27/07 09:24 PM
To the investors who tried to make a buck on people who atually wanted to live there, I laugh in your face! Ha Ha Ha (my breath is really bad too isn't it). Most of you investors have no skills and will now be poor!!!! He He! Greed got ya!!

by Paul	09/11/07 04:07 PM
Wow, they're up to 83 lawsuits now. The number keeps growing here. I find it interesting that the media hasn't kept tabs on this story... Oh wait, they only want to report on the poor investors; not real people who have been burned by shady builders

by Jeff	09/04/07 05:14 PM
Other projects in the area are in compliance with their contracts and even providing discounts for unexpected delays. The obstinate stance of this project to be in breach of contract should not be tolerated and by the way not everyone is an investor

by Lisa	08/08/07 07:12 AM
There is absolutely nothing wrong with a buyer forcing the seller to the terms of the contract. No cry babying, just business.

by Tom	07/08/07 09:40 PM
Is there a law requiring condos to be complete in 2 years?

by Paul S	07/06/07 10:48 AM
It's interesting that there are now 60 buyers suing the developer. I may be wrong, but I don't see this occuring with any of the other projects in the area, which also had a lot of investors. Something tells me that these are not frivolous lawsuits.

by Joe	06/29/07 05:44 PM
Key Developers has made drastic changes to their contracts since the first iteration. Not only have the square footages gotten smaller in the condos, the lobbys have been squeezed and the condo fees have increased by 30%.

by Jan	06/15/07 04:51 PM
Mr. Sirdar may have a lot of money, personaly I don't and my $20,000 means alot to me. I could have easily qualified 1 yr ago,but my situation has changed and I can't qualify for a loan of that amount now, so I am out the money!This isn't right!

by allison	06/10/07 08:35 PM
these crooked bastard theives not only did not complete our units in time but stole at least 70 sq ft from all our units, approx. 30,000 from each of us.

by John Mudd	06/05/07 06:49 PM
I do not see where the 34 lawsuits are from.

by Mark	06/04/07 11:32 AM
I'm sure these savvy speculators would be happy to give the developer any excessive profits above their projections had the project been exceptionally lucrative...so, in their world, the nice developer should help them out. Or maybe the tooth fairy.

by Jay	06/03/07 08:08 AM
I'm glad to see the rest of the posts were against the buyers as well. Come on....ya / sure I'd love to buy it to make lots' o' money...no money now? Oh..well then I want my money back. Right...suck it up suckers.

by Greg	06/02/07 11:49 PM
Right on Mike...they have to take the good with the bad. They are as bad as day traders who cause false shifts in stock markets.

by Phil	06/02/07 11:35 PM
You pay your money and you take your chances. This is free market economics in action. Their speculation helped contibute to unaffordable housing prices. If the buyers are on the losing end then they should stew in their own self made problems.

by Bob	06/02/07 11:33 PM
Wow, the comments sure seem to contain a bunch of sour grapes! I guess we know who didn't make any money in the housing market!

by Rock	06/02/07 10:27 PM
Where are adults? They bought condos, they see condo prices drop, now they don't want to pay for the condos? This country is filled with babies over the age of 21.

by Jim	06/02/07 08:47 PM
i aggree. these investors are probably all yanks looking for a quick return. this housing boom is not what this state needed. we are a good southern state with florida cracker hospitality. wish it would stay that way....

by The Judge	06/02/07 07:38 PM
Oh excuuuuuse me! When it seemed the prices were going to skyrocket, you were there . Recall the VONAGE IPO which tanked and no one wanted to follow through on $$ obligations. You made your bed... Poor baby. The cashier is on the left. Judg

by john	06/02/07 05:34 PM
suck it up WAAAAAHHHHHHHHHHHHHHH

by jason	06/02/07 05:31 PM
you bought the condo, now you want out. why dont you just take the condo and make yourself an episod eof Flip That House !

by Jason	06/02/07 05:15 PM
I hope they're all yankees who stay home up north now that their condo investment has gone bust. This state is bursting at the seams, and we don't need any more bad driving rude people. I remember when FL was a southern state. Good riddance!

by Mike	06/02/07 03:52 PM
I wonder if the condos had appreciated would the buyers refund the appreciation. I have no sympathy for these people. They are the same ones who created the false market and now they have to pay the fidler. History repeats itself think 1980's

by Mike	06/02/07 03:52 PM
I wonder if the condos had appreciated would the buyers refund the appreciation. I have no sympathy for these people. They are the same ones who created the false market and now they have to pay the fidler. History repeats itself think 1980's

by JT	06/02/07 03:28 PM
Good to see developer taken to task. There should be a penalty for not managing to a deadline like a professional should do. A first rate developer would be embarassed to let customers know they didn't lock in supply sources and costs any better...

by jamie	06/02/07 02:44 PM
When you are in the speculation biz this happens. You would not hear them whining if they made 50 k. The free market at work. And it DOES work.

by Mike	06/02/07 02:09 PM
Let's see--Buy high, see market plunge, panic, look for scapegoat and demand "investment" back. Zero risk with only a return possible? Just another sucker game devised by the greedy for the greedy. It appears true face is showing on all sides...

by CB	06/02/07 01:19 PM
Aw, too bad. Everyone want to be a big shot real estate investor, but when the tables turn it's everyone else's fault. Take it like a man - kiss your deposit goodbye!

by Jim	06/02/07 01:07 PM
That is why they call it "speculating". You are supposed to buy low and sell high. Well, they got it wrong and don't want to accept it. Tough!

by alan	06/02/07 12:53 PM
buyers have invoked a federal law requiring completion of condos within(not from)two years of the contract date

by fred	06/02/07 12:25 PM
caveat emptor

by kevin	06/02/07 12:11 PM
My prediction,,,lots of bankrupt developers. It will be like the early 70's except those problems were incited by high interest rates.

by Susan	06/02/07 11:44 AM
If they weren't ready within the 2 year time limit...go for it. Sue...get out of the bad deal.

by Sarah	06/02/07 11:15 AM
You wanted the bull and now you have the horns.

by Joseph	06/02/07 10:17 AM
I say - let them both eat cake. Housing is no longer an ATM. We have eating popcorn awiting for dust to settle before buying a home in FL. Sellers who bought in 2004 to 2006 were foolish. We will not pay what they are asking.

Buyers file suit to back out of condo deals before completion

The housing slump, they say, has eroded top-dollar values.