Legal advice please on pre construction - Posted by JB

Posted by JB on April 09, 2006 at 11:34:58:

I wasn¡¯t asking for free advice. I just thought that you couldn¡¯t enforce such a thing in VA. Does some body know a real estate lawyer in NOVA that would recommend?? I thing that happens in a project called 1021 Clarendon, NOVA

Legal advice please on pre construction - Posted by JB

Posted by JB on April 07, 2006 at 18:17:35:

I would love to have some help with this issue,

I bought a condo in pre construction in Virginia almost two years ago. I went recently to closing and they ask me to sign a document that doesn?t aloud me to sell or rent within the next 12 months of the closing day, or I have to sell it back to de builder/developer for the same purchase price. Of course the market price now is considerably higher than when I bought it. Is this legal?? Can the developer enforce such a rule??

Thanks you for any thoughts or advice

Re: Legal advice please on pre construction - Posted by Rich[FL]

Posted by Rich[FL] on April 08, 2006 at 20:52:58:

Yes; here in FL they can and do enforce such provisions. Look at it this way…the developer is sinking significant money into the project (both personal and borrowed); he knows what his plans are and what the development will look like and be worth after it is completely built. Purchases for rentals and quick resales (flips) will often artifically drive the prices way over market which will ultimately affect his profitability and ability to market. So, he has provisions in his contracts to control the sales.

Here in my neck of the woods, this very same thing happened - without those provisions. Pre-constructions were sold and resold several times before construction even began. We had dozens of new projects being developed and planned. Over the last 2-3 years, 2-3 BR condos went from about $200k to $500-600k each, many pushing over $400/sq ft. I can’t say for sure, but a good guess was that over half were put on hold or cancelled alltogether because of this buying frenzy. Many people made a killing by speculating early, and there are many who are holding overpriced condos because the prices have rolled back by maybe 20-30% and sales have almost come to a screetching halt. Regular single family houses that used to sell in hours or days are now taking 60-90 days to sell. We are undergoing a significant correction in this area and once everything settles down for awhile, I expect to see more growth in the future, maybe under more controlled circumstances.

I’m waiting for the foreclosures to hit!


Re: You get what you pay for. - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on April 08, 2006 at 19:55:21:

The legal advice on this board is priced right. If you really need legal advice you need to hire a lawyer.

That said: If you did not agree to the no sale after closing provision in the beginning then why would you want to agree to that now? If you sign something new at closing, then you have agreed to the new provision. When you need a lawyer is sooner rather than later. That would be before signing documents, and that’s my legal opinion (no charge).