New to this forum. Has anyone out there experienced difficulties with Tierra del sol, Orlando? I am a member of another forum and we have a very active thread on TDS!! We paid 20% deposit almost 2yrs ago and not one unit has yet been completed!
Guess who our realtor was? MRI! We have absolutely been sold up the river by MRI and every one else involved in this sorry saga and stand a very good chance of losing our deposit. If any other members have had problems but had their deposits returned or taken legal action, I would be ever so grateful if you could share your experiences here.
I have been following the TDS situation for arround three and a half years. I looked at the development in 2004 when I lived and worked over there. I declined the offer to buy on the 'development' for 3 reasons.
1. It was off plan and a little research (easily obtainable public domain stuff) on the people behind it did not give me much confidence.
2. A contract was presented with the box for the deposit ticked so as my money would go into the developers cash flow not escrow. They tried to tell me this was normal in Florida, which it certainly is not. Uk buyer not familiar with an oversease market should use a solicitor as they would in the UK, no solicitor would recomend signing your deposit away. This told me they couldn't be trusted.
3. The units were 'very' expensive at arround $330k, with very high running costs and rental projections that were made up then doubled. Running costs on these places with a 70% mortgage will be arround $45k+ per annum. In the current deteriorating rental market they are highly unlikely to break even.
The current valuations for unbuilt 3 bed terraced houses on TDS of $700k are grossly missleading. And anyone who re-loads their contract on that asummption will in my opinion be throwing good money after bad. Prices in Florida have been falling since 3rd quater 2005.
You can now buy 4 bed detched pool villas with water frontage (canal) and boat dock on the Gulf coast for $650k, two years ago they were a million!In the Orlando area you can buy a 7 bed 5 bath 3500 sq ft mansion for well under $700k. I mention this by way of comparison for benchmarking the varacity of the current valuation being claimed.
Speaking to a few friends in the Orlando Real Estate business (all of whom declined to sell units at TDS)they say if the whole development weas finished these propertied would struggle to make the origional prices they were contracted at. TDS is surrounded by 24 thousand unsold properties, many have been on the market for more than a year. Also Every other developer has reduced there prices by upto 45%, whilst TDS is putting them up. Add to this that all the news comming down stream about the US/Florida market indicates the peak of mortgage arreas/reposessions will not be for another 12 to 18 months means prices will continue falling for a few mor years. Somethings not right!
This is probably not what you want to hear but it's important people that are exposed to this development make decisions based on reality as opposed to some of the 'wishfull' thinging displayed of some other forums.
We paid a deposit to TDS sept 07 The unit was contracted to be completed within 2 yrs (no chance at all!). We are hoping to get our deposit back on the basis of their breach of contract. We have e-mailed 3 times to the same people, Chairman of American Leisure Holdings (Malcolm Wright), VP of Sales (Russell Pierce) and contracts manager (Csrmen Heath). We have even e-mailed Alan Sonnabend of Sonesta (who was courteous enough to reply promptly). Have not had 1 reply (yet!!). We have also left telephone message for someone to call us back from TDS and MRI (Mike Eliis). We are not alone. Many other investors have been asking for a return of their deposits for many months now.
Many of us are thinking of banding together and getting legal advice.
The unit was contracted to be completed by Sept 07 but there is absolutely no chance of our unit being completed in 07. In fact TDS themselves have told us the new contracted date will be late 2008/early 09.
We are asking for our deposit back on the basis that they will be in breach of contract for not completing the unit by Sept 07.
We have requested 3 times by e-mail, always to the same team of people, Chairman of American Leisure Hldgs (Malcolm Wright), VP of sales (Russell Pierce) and contracts manager (Carmen Heath). We have no response to date! I have sent an e-mail to Sonesta asking them what there understanding is of the current delays, etc., and Alan Sonnabend had the good manners to reply to me very promptly. His reply said that the project was still very much ongoing and that although they had various 'get out' clauses, none applied at that time.
The unit was contracted to be completed by Sept 07 but there is absolutely no chance of our unit being completed in 07. In fact TDS themselves have told us the new contracted date will be late 2008/early 09.
We are asking for our deposit back on the basis that they will be in breach of contract for not completing the unit by Sept 07.
We have requested 3 times by e-mail, always to the same team of people, Chairman of American Leisure Hldgs (Malcolm Wright), VP of sales (Russell Pierce) and contracts manager (Carmen Heath). We have no response to date! I have sent an e-mail to Sonesta asking them what there understanding is of the current delays, etc., and Alan Sonnabend had the good manners to reply to me very promptly. His reply said that the project was still very much ongoing and that although they had various 'get out' clauses, none applied at that time.
Any ideas?
Hire a good lawyer. Get out of the contract ASAP. Prices in Florida have fallen like a rock. You are lucky that the construction has delays and can cancel the contract.
In many of these types of situations (I currently know of four developments in the Orlando area where the buyers, many of whom are Brits are asking for their deposits to be returned) the companies holding the deposits are understandably reluctant to return them.
You appear to be basing your request for the return of your deposit on TDS (American Leisure Hldgs) 'failure to perform' under the terms contract you have with them, that being they are/will not be in a position to handover your unit by the contracted date.
You will be in a much better position if your deposit is in escrow, rather than the developers cash flow.
Either way you need to take legal advice from a competent Florida based Real Estate/litigation attorney. This will allow you to gain a clear understanding of the strength or otherwise of your current position, and advice on your options.
We purchased a condo back in Feb 2006 and are having problems getting our deposit back -how are getting on with your situation - please could you give us some information and help or a contact for a good lawyer
quote:
Originally posted by anongal: Thank you PS or L and Reador 07.
We are already making plans to contact an attorney in Orlando.
Wish us and all the other investors screwed by TDS and MRI good luck!
I will post any developments for the benefit of others.
New to this forum. Has anyone out there experienced difficulties with Tierra del sol, Orlando? I am a member of another forum and we have a very active thread on TDS!! We paid 20% deposit almost 2yrs ago and not one unit has yet been completed!
Guess who our realtor was? MRI! We have absolutely been sold up the river by MRI and every one else involved in this sorry saga and stand a very good chance of losing our deposit. If any other members have had problems but had their deposits returned or taken legal action, I would be ever so grateful if you could share your experiences here.
We purchased a condo back in Feb 2006 and are having problems getting our deposit back -how are getting on with your situation - please could you give us some information and help or a contact for a good lawyer
