Florida Condo Real Estate Market Watchers and lawyers have their eyes on a case currently on appeal in the Fourth District Court of Appeal in West Palm Beach. The court is expected to clarify the meaning of" material and adverse impact "in terms of whether unforeseen rising insurance and utilities costs are sufficient for a buyer to cancel a contract Condo, even if the recording shows that the buyer could be paying the higher costs. The lower court dismissed the action (against the Swerdlow Group Marina Grande Riviera Beach), and it is really someone advise whether the appellate court for the resumption of the plaintiffs claims.

While we are waiting for an opinion in the Swerdlow Group case, it is a good idea to take a step back and get a feel for the meaning of "material and negative impact", as currently permitted under Florida law. The term itself comes directly from Section 718.503 (a) (1) of the Florida statute that allows a buyer to void (on the right note to the developers) a dwelling under the contract, "" receipt of the developer to amend [the contract] which is substantially altered or modified the offer in a way that the negative to the buyer. "" Unfortunately, there is not a lot of case law interpreting this language. What case law is somewhat illuminating and worth taking a look at.

For example, the Fourth District Court of Appeal held nearly 30 years in Barber v. Chalfont Development Corporation, 369 So. 2d 983 (Fla. 4th DCA 1979), that subsequent amendments to a contract which restricts the buyer the right to decorate the apartment, and initially set at a property to the apartment to a recreational lease area from material adverse changes sufficient to rescind the contract. And in another key opinion from the Third District Court of Appeal, BB Landmark, Inc. v. Haber, 619 So. 2d 448 (Fla. 3D DCA 1993), the Court has not hesitated to order a material, adverse change in the contract, in which the developers who unilaterally the prices for extras, from the buyers of $ 10,384 to $ 17,122.

It is always difficult to predict which way a court, and especially if the existing case law is thin, as is true here. In BB emblem, the court relied on broad dictionary definitions of the word "materiality" and "negative" indicates that the real question is whether the changed conditions are unfavorable for the buyer. By this measure, one could expect that the Fourth District Court of Appeal found in the Swerdlow Group case, that increased insurance and utility costs are almost by definition, sufficient for the buyer to rescind. But Barber, the Court does not cover costs, but on the rights of the buyer . Since the changes from the buyers with less in the nature of the rights (ie, land and the right to decorate), they were to resign. It is not clear whether Barber would have been a mere increase in the insurance and utility costs in the same way, provided that the buyer is still the same apartment they bargained for. The Fourth District Court of Appeal could be narrower approach in the decision on the case and Swerdlow Group, that "material and adverse" "from to what the property ultimately acquired looks like from the perspective of the buyer, but as a mere listing over the last original cost.

Whatever the result, Condo Buyers and developers alike should be attentive, because the group decision is likely Swerdlow form condominium law in Florida for the coming years. And anyone who questions whether there are grounds for cancellation of a certain condominium contract, of course, should consult with a competent lawyer Condo litigation, as the answer depends on the language of the contract and the actual circumstances of the development in question.

By Jared H. Beck, Esq.

This article does not constitute legal advice or the formation of an attorney-client relationship relationship, and is not responsible for the re-publication without the express permission of the author.

Mr. Beck has a law degree from Harvard Law School, and practices law in the courts of South Florida. A substantial portion of his practice is devoted to issues arising under condominium purchase agreements. He can be reached at 305-789-0072 or jared@beckandlee.com

Mr. Beck maintains a blog for the Florida legal matters, including the condo right questions to http://beckandlee.wordpress.com