I was purchasing a new Condominium that the Developer has failed to build. How do I get my down paym
Question: My wife and I signed a Purchase Agreement and placed a down payment on a new residential condominium to be built. The developer has failed to build the condominium and I have heard rumors that the developer may be going out of business. Is there any way I can get my deposit back?
Answer: The condominium laws require the developer to deposit down payments on a condominium not yet built with an Escrow Agent. The Escrow Agent is usually a title company. If the developer deposited the purchase agreement down payment as required by statute with a title company, the title company would have the deposit whether he filed bankruptcy or not. If the developer pocketed the deposit or used it for operating expenses, then that would be breaking the law. It would be rare for a real estate developer to violate this provision of the Michigan Condominium Act. A Lawyer that knows real estate law and condominium law can help you get your money back.