Buyer’s Remorse Prompts Appellate Court Decision – Right to Rescind Condo Purchase limited
MIAMI, Dec. 22 , 2008
- Property values reached an all time low this year compelling many condo speculators to back out of contracts in order to minimize their losses. Cases surfaced where plaintiffs sought to rescind their sales contracts, accusing developers of failure to comply with certain disclosure requirements mandated by the Interstate Land Sales Full Disclosure Act (ILSA). Last week, however, many plaintiffs reached a dead end with those allegations.
On December 9, the Eleventh Circuit issued the first opinion in the country from a circuit court of appeals addressing the split of authority among the federal district and state courts on whether builders, whose developments are partially exempt under ILSA, must comply with all disclosure provisions.
The Eleventh Circuit reversed the federal district court’s ruling, preventing plaintiffs from rescinding their contracts with homebuilders who rightfully believed they had met all requisite disclosure requirements for their types of developments. Akerman Senterfitt represented the National Association of Home Builders and the Florida Home Builders Association as amicus curiae in the appeal before the Eleventh Circuit.
“This favorable decision is the result of excellent work by our appellate attorneys and reflects the overall strength and experience of our appellate practice group,” said Joseph Hatchett, Chair of Akerman’s appellate practice group, former Chief Judge of the United States Court of Appeals for the Eleventh Circuit and former Florida Supreme Court Justice. “Our litigators have been involved in a number of speculative condo litigation matters this year and can expect these cases to expand regionally throughout the U.S. as long as the housing market remains depressed.”