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When Florida lenders act wrongly, hold them accountable

On Behalf of | Dec 9, 2016 | Commercial Real Estate |

Developers and owners of commercial real estate in Florida have a number of challenges they must overcome in order to find success. Market conditions and competitors can present numerous challenges, and these are in addition to the challenges facing the developer or owner individually.

For instance, one challenge for the company often has to do with securing proper financing for the project. As discussed last week in this blog, many choose to pursue alternative means of financing such as venture capital, where investments are made in exchange for shares and an active role in the company.

While developers and builders often find success through various means of funding, disputes also frequently arise when it comes to financing matters. For example, lenders in office complex or other jobs sometimes have been known to cut off funding before a borrower defaults as part of an overall strategy to force the borrower to relinquish the financed property. Thus, even though the building is nearly complete, a lender might quit funding without reason and then later claim the builder was in default on the property.

In cases like these, developers and builders have options for legal relief. In a case like the above, for instance, the lender could be sued and made to pay damages for the harm caused to the developer as a result of the lender’s improper actions.

Our firm works with numerous businesses to help protect their interests in cases like these. With our years of experience and sophisticated understanding of the financial marketplace, we can develop a strategy, whether it means negotiating a beneficial result or taking a case to trial. For more information on our firm’s ability to help Florida businesses, please visit our commercial real estate webpage.

Source: U.S. Small Business Administration, “Venture capital,” accessed on Nov. 26, 2016