For years, Florida’s condominium market grew at a rapid pace. Developers constructed new communities on nearly every corner. Many old apartment buildings were gutted and converted into upscale condos and sold as single units.

Several factors contributed to the growth, including low interest rates and a high demand for Florida properties. This led many of you to enter contracts and pay deposits on condominium units that are still under construction.

Well, much has changed since that time.

Those once low interest rates have risen. The demand for condos has dropped and supply is through the roof. Several construction projects have stalled and you are left without your deposit.

Interstate Land Sales Full Disclosure Act (ILSFDA)

In Florida, it is not uncommon for you to wait three or more years between signing the purchase agreement and closing on a condominium.

The good news is the ILSFDA, passed by the Congress in 1968, was put in place to protect you from fraud, misleading promises, and long waiting periods between the contract signing and closing.

Under ILSFDA, the developer has the burden of full disclosure, and can face civil liability if he or she engages in fraudulent or misleading actions.

If you have signed a contract to purchase a condo, you may be entitled to a full refund of your deposit provided that the transaction is subject to the requirements of ILSFDA.

Next week, we will discuss the Florida courts’ opinions on the ILSFDA and condominium deposit recovery. Subscribe to our feed to be notified when the new articles are published.