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Developer sued for providing misleading information

On Behalf of | Jan 17, 2019 | Commercial Real Estate |

There are many different real estate developers in Florida. These various developers are responsible for constructing many different buildings and other structures. These are very costly projects, but they can be very profitable as well. However, they need the money upfront to pay for the costs so they can earn money after everything is built and they can sell and lease the various spaces in the buildings. This means that they must work with banks and investors to obtain loans.

The various banks make their decisions for loans based on many different reasons and one of them is appraisals of the property being developed. Recently a real estate developer was sued due to information they provided while the appraisal was being done. The lawsuit accuses the developer of providing misleading information. Particularly they claim that they purposely did not tell the appraiser that the zoning was likely to be changed, which would allow additional building and therefore the property would be worth more. This lawsuit is seeking a new appraisal of the property.

There are many different aspects of commercial real estate development. Most begin with obtaining the investors or loans to pay for the project. Then there is the construction phase, which involves many different companies and workers. Finally the developers must lease the various offices, condominiums and other spaces. Throughout all these phases many things can go wrong and it is important that all contracts are written properly and both parties follow the terms of the contract. When people do not lawsuits may begin.

There are many aspects of real estate development in Florida. Each aspect has different requirements of the developer so it is very important that each part of the project is done correctly. Developers also must be truthful and abide by all terms of the contracts they sign. If they do not, they may be liable for compensating the various parties who suffer damages due to their actions. Experienced attorneys understand the complications of real estate development and may be a valuable resource.