Condo Buyer Wants Money Back After Multi-Year Delay. Developer Says “No.”
BY: LITIGATION DESK | BocaNewsNow.com
BOCA RATON, FL (BocaNewsNow.com) (Copyright © 2024 MetroDesk Media, LLC) — The company behind the very much delayed “The Residences — Mandarin Oriental Boca Raton” is refusing to refund the $1.3M deposit paid by the buyer of a condominium, even though the building remains under construction years after it was supposed to be complete.
Frank and Nancy Scala say they paid the deposit to “Via Mizner Owner III, LLC” for the condo that was supposed to be ready for closing three years ago. But the building is just a “shell,” according to a lawsuit they’ve filed and images posted by Via Mizner on the Mandarin Oriental Residences website. Despite apparent contractual guarantees that deposits would be refunded if the project ran more than three years late, Via Mizner allegedly refuses to issue a refund. BocaNewsNow.com obtained the complaint which you can read in its entirety, below. Here’s a key section:
“This is an action for contractual damages as it relates to the purchase of a condominium unit by the Plaintiffs from the Defendant. Defendant is the developer of the Tower 105 Condominium, also known as The Residences-Mandarin Oriental-Boca Raton. On April 21, 2021, Plaintiffs and Defendant executed a Purchase Agreement for the purchase of a condominium unit (Unit 812) being developed and sold by the Defendant in Boca Raton, Florida.
In a Second Addendum to that Purchase Agreement, dated June 24, 2021, Plaintiffs also purchased a private garage unit on the condominium property. Pursuant to the Purchase Agreement which was drafted by the Defendant, the estimated completion and delivery date of Unit 812 was to take place in June 2021. In conjunction with the Purchase Agreement and the Second Addendum, Plaintiffs gave Defendant deposits totaling $1,279,000.00. Section 11 of the Purchase Agreement contains a time limit for when a closing on the condominium unit to be purchased by Plaintiffs is to have taken place. That Section states:“
“Closing Date. Buyer understands that Seller has the right to schedule the date, time and place for closing, provided, however, that the Unit shall be completed and delivered to Buyer within three (3) years after the Estimated Completion Date. Pursuant to Section 11 of the Purchase Agreement, a closing on the condominium unit purchased by Plaintiffs and developed by Defendant was to have taken place no later than June 30, 2024. No closing for the unit took place on or before June 30, 2024. In fact, as of the date of this complaint, the entire structure of the Tower 105 Condominium is still just a few steps beyond a concrete shell and a closing is far off into the future. The Purchase Agreement between the parties contains a Section in which the Defaults of the Parties are addressed (and states):”
“Buyer will give Seller 20 days written notice of any default by Seller under this Agreement and if Seller does not thereafter cure the default within such 20 day period (unless such default cannot be cured within such 20 day period in which case Seller shall have such additional time as may be necessary to cure the default so long as Seller is diligently attempting to cure the same). Buyer may demand the return of its deposits, together with any and all interest actually earned thereon, and Buyer may pursue a claim against Seller for actual damages (but not consequential, special or punitive damages) on account of any breach by Seller.”
“As a result of Defendant failing to deliver and hold a closing for the purchased condominium unit or before June 30, 2024, Defendant is in default under the Purchase Agreement. As a result of the Seller’s default, on July 5, 2024, Plaintiffs, through their attorney demanded a return of their deposit, as well as interest on those deposit funds. On August 10, 2024, after over a month with no communication whatsoever from Defendant, the Scalas were told, without any explanation or legal basis, that they were “not entitled” to a return of their deposit.”
Via Mizner had not filed a response to the suit as of the afternoon of Saturday, August 17th, 2024. The Scala family is represented by Attorney James Ferrara of Hinshaw and Culbertson in Fort Lauderdale. Read the complete lawsuit here.
