On May 6, 2009, KA and KM Development, Inc., a/k/a KA & KM Development, Inc., the developer and seller of the Lake Eve condominium hotel development, filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Middle District of Florida, Orlando Division, case number 6:09-bk-06245-KSJ.

Urban Thier Federer & Jackson, P.A., currently represents approximately 80 of the 176 units in the Lake Eve condo-hotel development. Each of Urban Thier Federer & Jackson, P.A.,’s purchaser clients in the Lake Eve Development signed a Contract for Purchase and Sale (Purchase Contract) with KA & KM Development, Inc., for the purchase of a condo-hotel unit. Urban Thier Federer & Jackson, P.A., is in the process of moving forward in the bankruptcy court to enforce its client purchasers’ rights to terminate any contratual obligation to purchase and to seek a refund and return of deposits paid.

If you entered into a Purchase Contract with KA & KM Development, Inc., you should be aware that your 30 percent deposit payment was paid to Titleconcepts, LLC, as escrow agent. You should also be aware that pursuant to the terms of the Purchase Contract, any deposit payment in excess of 10 percent of the Purchase Contract purchase price has probably been released to KA & KM Development, Inc. However, at least 10 percent of the purchase price in deposits should still be in the Titleconcepts, LLC, escrow account and may be recoverable if you take appropriate and decisive legal action with competent legal representation.

Now that the bankruptcy has been filed, your rights may be lost if you fail to take appropriate action. You should also be aware that taking any action against KA and KM Development, Inc., outside of the bankruptcy court may be deemed by the bankruptcy court to be a violation of the automatic bankruptcy stay, subjecting you to possible sanctions and contempt. We encourage you to consult with this law firm or another law firm of your choice to ensure that your rights are protected. In most cases we can represent purchasers on a contingency fee basis.

With offices in Orlando, Florida, and Munich, Germany, Urban Thier Federer & Jackson, P.A. continues to assit buyers throughout the United States and European Union countries in terminating their pre-construction purchase agreements. In many cases the law firm’s clients are not even required to travel to Florida.

We encourage you to explore our websites - www.urbanthier.com (English language) and www.urbanthier.de (German language) - and law blogs to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial and appellate courts, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

Plaza Court, L.P., the developer of Solaire at the Plaza Condominium, Enters into Consent Order with the Florida Department of Business and Professional Regulation Division of Florida Condominiums, Timeshares, and Mobile Homes.

One of this law firm’s clients has successfully reported a violation of Florida Statutes Chapter 718 (the Florida Condominium Act) to the Florida Department of Business and Professional Regulation (DBPR) Division of Florida Condominiums, Timeshares, and Mobile Homes. The DBPR is the Florida regulatory body with enforcement of the Florida Condo Act.

As a direct result, on April 20, 2009, the DBPR filed a Consent Order, requiring Plaza Court, L.P., to document to the DBPR that all Solaire at the Plaza purchasers have been delivered all amendments to the documents required to be delivered to purchasers pursuant to Florida Statutes Chapter 718. The deadline for compliance is June 20, 2009. The Consent Order also requires Plaza Court, L.P., to pay a $3,050.00 civil penalty to the DBPR. You can download a copy by clicking Consent Order.

For those purchasers who entered into a Solaire at the Plaza Condominium Purchase Agreement with Plaza Court, L.P., and have not completed/closed on the purchase of their unit, this law firm may be able to assist you in terminating your contract with Plaza Court, L.P., and may be able to retrieve all or a portion of your deposit on a contingency fee basis. However, time is of the essence and it is critical that purchasers formally rescind their contract within 15 days after receiving formal notice of any amendments to their Florida Condo Act mandated condominium documents which contain changes to the offering which are material and adverse to the purchaser.

Florida Statutes Chapters 718 (for condominium developments) is a Florida law which requires certain written disclosures of rights within the contract or purchase agreement. This law also requires the developer to disclose certain information to the purchaser both at the time of signing of the contract or purchase agreement and when changes are made (including, but not limited to, condominium and homeowners association documents and a disclosure summary listing fees, assessments and other information). The purchaser has a 15 day right of rescission which starts from the time that he or she receives these documents and any amendments.

The law firm of Urban Thier Federer & Jackson, P.A. has helped and continues to help buyers who entered into preconstruction contracts for condominium units located in Florida and who wish to terminate those contracts and receive a deposit refund. By contacting us, we can assist you in gaining a better understanding of your legal options.

If you are a buyer/purchaser who is a party to a pre-construction purchase and sale agreement and is seeking refund of their deposit, we encourage you to consult with this law firm or another law firm and explore your rights and options to recover your deposit. Urban Thier Federer & Jackson, P.A. can provide you with a consultation and, in many instances, we can represent buyers on a contingency fee basis.

We encourage you to explore our websites www.urbanthier.com (English language) and www.urbanthier.de (German language) to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial and appellate courts, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

Visit our website at www.urbanthier.com for firm profile.

On January 15, 2009, Mona Lisa at Celebration, LLC, filed its Voluntary Petition for Chapter 11 bankruptcy with the United States Bankruptcy Court for the Middle District of Florida, Orlando Division, case number 6:09-bk-00458-KSJ.

Urban Thier Federer & Jackson, P.A., currently represents a number of purchasers who each entered into a Condominium Unit Purchase Contract Mona Lisa at Celebration, a Condominium Hotel (“Purchase Contract”) with Mona Lisa at Celebration, LLC. Urban Thier Federer & Jackson, P.A., is in the process of moving forward in the bankruptcy court to enforce its client purchasers’ rights.

If you entered into a Purchase Contract with Mona Lisa at Celebration, LLC, you should be aware that your 15 percent deposit payment was paid to SunTrust Bank as escrow agent. You should also be aware that pursuant to the terms of the Purchase Contract, any deposit payment in excess of 10 percent of the Purchase Contract purchase price has been released to Mona Lisa at Celebration, LLC. Additionally, the 10 percent of the purchase price to be held in escrow by the escrow agent has been released to Mona Lisa at Celebration, LLC. In place of your cash deposit payment, Mona Lisa at Celebration, LLC, secured a Surety Bond through a surety company as alterative assurance.

Now that the bankruptcy has been filed, your rights may be lost if you fail to take appropriate action. We encourage you to consult with this law firm or another law firm of your choice to ensure that your rights are protected. In most cases we can represent purchasers on a contingency fee basis.

With offices in Orlando, Florida, and Munich, Germany, Urban Thier Federer & Jackson, P.A. continues to assist buyers throughout the United States and European Union countries in terminating their pre-construction purchase agreements. In many cases the law firm’s clients are not even required to travel to Florida.

We encourage you to visit our websites www.urbanthier.com (English language) and www.urbanthier.de (German language) to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial and appellate courts, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

By John L. Urban, Shareholder, Urban Thier Federer & Jackson, P.A.

Lake Austin Properties I, Ltd.
Grande Palisades, Magnolia Woods, Avalon, and Twin Lakes:

Urban Thier Federer & Jackson, P.A., is accepting clients seeking representation against Lake Austin Properties I, Ltd.’s Grande Palisades, Magnolia Woods, Avalon Resort, and Twin Lakes developments at Lake Austin Reserve (the firm is not accepting new clients in the Palisades phase of the Lake Austin Reserve development – which is different from the Grande Palisades phase).

It is very important that purchasers take prompt action to enforce their rights. Many of the causes of action/claims have strict statutes of limitation/time limits which start as early as the date that the purchaser signs the purchase agreement. Developers, such as Lake Austin Properties I, Ltd., and their attorneys are acutely aware of these time limits – time is on the side of the developers and not the purchasers. If you fail to timely enforce your rights, those rights will be lost forever.

Grande Palisades:

The Grande Palisades consists of buildings C1 - The Grande Palisades C1, a Condominium; C2 - The Grande Palisades C2, a Condominium; and C3 - The Grande Palisades C3, a Condominium, at Lake Austin Properties I, Ltd.’s Lake Austin Reserve. Most of our clients signed an Agreement for Sale contract, with Lake Austin Properties I, Ltd., named as the seller, in 2005 and another in 2007. It appears that the main reason for the 2007/replacement contract was an effort by Lake Austin Properties I, Ltd., to correct certain deficiencies in the 2005 contract. The main deficiencies being that the 2005 contract violates the Interstate Land Sales Full Disclosure Act (ILSFDA) and that Lake Austin Properties I, Ltd., realized that it would not be able to timely complete the Grande Palisades phase of the development. There appear to be multiple viable independent claims against Lake Austin Properties I, Ltd., in relation to the Grande Palisades phase including, but not limited to, breach of contract, violations of Florida Statutes Chapter 718 (Florida Condo Act), violations of ILSFDA, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), and other claims.

On March 20, 2009, a Certificate of Occupancy was issued for 188 of the 304 units that comprise The Grande Palisades C1 building. No Certificate of Occupancy has been issued for the other 116 C1 units or for any units in buildings C2 and C3 of the Grande Palisades. Especially for purchasers with units in building C1, it is critical that they take immediate action in order to protect their rights.

Magnolia Woods:

Magnolia Woods Resort, a Condominium, is a separate phase of the Lake Austin Properties I, Ltd.’s Lake Austin Reserve development. The Magnolia Woods Agreement for Sale contract, with Lake Austin Properties I, Ltd., named as the seller, appears to blatantly violate the Interstate Land Sales Full Disclosure Act (ILSFDA) and there appear to be multiple viable independent claims against Lake Austin Properties I, Ltd., in relation to the Magnolia Woods phase including, but not limited to, breach of contract, violations of Florida Statutes Chapter 718 (Florida Condo Act), violations of ILSFDA, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), breach of contract and other claims. It appears that most of these contracts were signed in the 2006 timeframe.

Avalon Resort:

The Avalon Resort, a Condominium, is a separate phase of the Lake Austin Properties I, Ltd.’s Lake Austin Reserve development. The Avalon Resort Agreement for Sale contract, with Lake Austin Properties I, Ltd., named as the seller, appears to blatantly violate the Interstate Land Sales Full Disclosure Act (ILSFDA) and there appear to be multiple viable independent claims against Lake Austin Properties I, Ltd., in relation to the Avalon Resort phase including, but not limited to, breach of contract, violations of Florida Statutes Chapter 718 (Florida Condo Act), violations of ILSFDA, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), and other claims. It appears that most of these contracts were signed in the 2006 timeframe. As time passes, purchasers will lose, if they have not already lost, certain rights. We encourage purchasers to contact us or another law firm to explore their legal options.

Twin Lakes:

Twin Lakes is a separate phase of the Lake Austin Properties I, Ltd.’s Lake Austin Reserve development. Urban Thier Federer & Jackson, P.A. is still conducting its due diligence as to the status of this phase of the Lake Austin Reserve development. Any purchasers interested in exploring their legal options are encouraged to contact this law firm.

Lake Austin Properties I, Ltd., appears to have primarily targeted and marketed these properties to residents of the United Kingdom. Urban Thier Federer & Jackson, P.A. currently represents 100s of residents of the United Kingdom who are seeking to terminate their pre-construction contracts in this and other developments throughout Central Florida. The law firm prides itself on its long record of successes and continues to set the standard for preconstruction contract termination and deposit return litigation cases and strategy.

This law firm is aware that other attorneys represent purchasers in the Lake Austin Reserve. Although some attorneys are competent, many have litigation strategies which we believe are not in purchasers’ best interest. We encourage all purchasers to interview any attorney that they may be contemplating retaining and to ask that attorney for their experience, record in this area of the law, number of cases taken to final judgment, number of cases affirmed on appeal, number of attorneys in the firm, firm staff, resources, etc. We sincerely believe that purchasers should not retain an attorney or law firm until they are confident that 1) the law firm has the experience and resources to represent their best interest and 2) they fully understand the law firm’s litigation strategy.

With offices in Orlando, Florida, and Munich, Germany, Urban Thier Federer & Jackson, P.A. continues to assist buyers throughout the United States and European Union countries in terminating their pre-construction purchase agreements. In most cases the law firm’s clients are not even required to travel to Florida in connection with litigation.

Current Areas of Activities

If you are a buyer/purchaser who is a party to a pre-construction purchase and sale agreement, we encourage you to consult with this law firm or another law firm and explore your rights and options. Urban Thier Federer & Jackson, P.A. can provide you with a consultation and, in many instances, can represent buyers on a contingency fee basis. Urban Thier Federer & Jackson, P.A. has successfully represented and/or currently represents buyers in connection with housing developments and condominium projects throughout Central Florida – including, but not limited to, in connection with:

-The Avalon Resort, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Fairview Grande Condominiums, in Orlando, Orange County, Florida, by Lake Fairview Development, LLC (Condominium Development)

-Grande Palisades, buildings C1- The Grande Palisades C1, a Condominium, C2 - The Grande Palisades C2, a Condominium, and C3 - The Grande Palisades C3, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Halifax Landing, a Condominium, in South Daytona, Volusia County, Florida, by Halifax Landing Condominium Limited Liability Company (Condominium Development)

-Lake Buena Vista Resort at Lake Buena Vista Drive, Kissimmee, Osceola County, Florida, by Lake Buena Vista Resort, LLC (Condominium Development)

-Lake Eve Resort at Lake Buena Vista, Orlando, Orange County, Florida, by KA and KM Development, Inc. (Condominium Hotel Development)

-Magnolia Woods Resort, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Mona Lisa at Celebration, a Condominium Hotel, in Celebration, Osceola County, Florida, by Mona Lisa at Celebration, LLC (Condominium Hotel Development)

-The Paramount on Lake Eola, a Condominium, in Orlando, Orange County, Florida, by Paramount Lake Eola, L.P. (Condominium Development)

-The Plaza at Solaire in Orlando, Orange County, Florida, by Plaza Court, LLP (Condominium Development)

-The Peninsula at St. John’s Center, in Jacksonville, Duval County, Florida, by St. Johns Phase 2 LLLP (Condominium Development)

-The Point Orlando Resort Condominium, in Orlando, Orange County, Florida, by Seymour International, Inc. (Condominium Hotel Development)

-Twin Lakes, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Veranda Park, in Orlando, Orange County, Florida, by VP Phase III, Ltd. (Condominium Development)

We encourage you to explore our websites - Urban Thier Federer & Jackson, P.A. (Florida Office) and Urban Thier Federer & Jackson, Rechtsanwälte (Munich Office) - to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. you should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial and appellate courts, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

Latest Updates

     As a leader of the Pre-Construction Contract Termination and Deposit Return Litigation plaintiff’s bar, the law firm of Urban Thier Federer & Jackson, P.A. continues to set the standard for pre-construction deposit return litigation cases. The law firm’s growing list of successes continues to shape this area of the law - clearly setting Urban Thier Federer & Jackson, P.A. apart from other law firms and lawyers serving client purchasers who are seeking to terminate their pre-construction contracts and recover their deposits.

     On January 5, 2009, the Federal Eleventh Circuit Court of Appeals, which is the appeals court for all federal courts for the States of Alabama, Florida and Georgia, and one level below the United States Sumpreme Court, unanimously affirmed this law firm’s win in the case of Harvey v. Lake Buena Vista, LLC, 568 F. Supp. 2d 1354, 1365 (M.D. Fla. 2008) affirmed Harvey v. Lake Buena Vista, LLC, 2009 WL 19340 (11th Cir. 2009).  In that case, this law firm won in the federal trial court - the United States District Court for the Middle District of Florida, Orlando Division - based upon both breach of contract and Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701-1720 (”ILSFDA”) claims.  The developer defendant, Lake Buena Vista Resort, LLC, appealed the trial court decision to the Eleventh Circuit Court of Appeals.  After extensive appellate proceedings, the Eleventh Circuit Court of Appeals three judge panel assigned to the case unanimously “per curiam” affirmed the trial court decision.

     With offices in Orlando, Florida, and Munich, Germany, Urban Thier Federer & Jackson, P.A. continues to assist buyers throughout the United States and European Union countries in terminating their pre-construction purchase agreements.  In many cases the law firm’s clients are not even required to travel to Florida.

Current Areas of Activities

     If you are a buyer/purchaser who is a party to a pre-construction purchase and sale agreement, we encourage you to consult with this law firm or another law firm and explore your rights and options.  Urban Thier Federer & Jackson, P.A. can provide you with a consultation and, in many instances, we can represent buyers on a contingency basis and/or refer you to another law firm.  Urban Thier Federer & Jackson, P.A. has successfully represented and/or currently represents buyers in connection with housing developments and condominium projects throughout Central Florida - including, but not limited to, in connection with:

-Fairview Grande Condominiums, in Orlando, Orange County, Florida, by Lake Fairview Development, LLC (Condominium Development)

-Halifax Landing, a Condominium, in South Daytona, Volusia County, Florida, by Halifax Landing Condominium Limited Liability Company (Condominium Development)

-Lake Buena Vista Resort at Lake Buena Vista Drive, in Kissimmee, Osceola County, Florida, by Lake Buena Vista Resort, LLC (Condominium Development)

-Mona Lisa at Celebration, a Condominium Hotel, in Celebration, Osceola County, Florida, by Mona Lisa at Celebration, LLC (Condominium Hotel Development)

-The Paramount on Lake Eola, a Condominium, in Orlando, Orange County, Florida, by Paramount Lake Eola, L.P. (Condominium Development)

-The Plaza at Solaire, in Orlando, Orange County, Florida, by Plaza Court, LLP (Condominium Development)

-The Peninsula at St. John’s Center, in Jacksonville, Duval County, Florida, by St. Johns Phase 2 LLLP (Condominium Development)

-The Point Orlando Resort Condominium, in Orlando, Orange County, Florida, by Seymour International, Inc. (Condominium Hotel Development)

-Veranda Park, in Orlando, Orange County, Florida, by VP Phase III, Ltd. (Condominium Development)

-Villas at Lake Eve, a Condominium, in Orlando, Orange County, Florida, by KA and KM Development, Inc. (Condominium Hotel Development)

     We encourage you to explore our websites www.urbanthier.com (English language) and www.urbanthier.de (German language), and blogs Update on Pre-Construction Contract Termination and Deposit Return Litigation and Pre-Construction Contract Termination and Deposit Return Litigation - to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas.  Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings.  We encourage you to become informed of your rights and options.  You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial and appellate courts, if necessary. 

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Represenation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

By Michael R. Jackson, Shareholder - Urban Thier Federer & Jackson, P.A.

          The law firm of Urban Thier Federer & Jackson, P.A. is proud to protect residents from abuse and neglect in Florida nursing homes, assisted living facilities, adult family-care homes, board and care facilities, and other similar residential adult care facilities, or, at minimum, seek justice for those already injured in these settings. The firm is most active in the Central Florida area, including Brevard, Lake, Orange, Osceola, Polk, Seminole, and Volusia Counties, but has also handled cases throughout the state of Florida, including Baker, Clay, Flagler, Marion, Citrus, Hernando, Sumter, Pinellas, Hillsborough, Manatee, and Sarasota Counties.

          After years of defending physicians working in long term care facilities and, to an even greater degree, defending the facilities themselves – both in Texas and in Florida – I, and this firm, now serve the needs of those being abused and neglected in the long-term care setting. Although experience has shown that there are compassionate care givers who work in the long-term care industry, not all of the staff working at such facilities care about the needs of their facilities’ elderly and vulnerable resident population. Moreover, even those who enter the profession with high ideals and a desire to provide a high level of care to the residents within their charge often become jaded because they are overworked and underpaid for their efforts by their employers – the very facilities charged with ensuring the welfare of its residents. Corporate greed leads to inadequate facility budgets and compromises the ability to provide the level of care legally mandated by the “Resident’s Bill of Rights,” as reflected in the Florida Statutes. Corporate greed also undermines the moral obligation to care for those who number amongst the most frail and defenseless in our population. All too often my conferences with staff, as the defense attorney for the long term care facility, led to comments by registered nurses, licensed practical nurses, and certified nursing assistants that they were so overworked that if they actually provided all of the care that residents were supposed to receive on a daily basis then they would not reach all of the residents in their care and some would even die. Thus, these caregivers learn to cut corners and skip steps in the care plan – some of which result in disastrous consequences for the residents in their supposed care.

          The one overriding theme evident in my years of defending the long-term care industry was the begrudging admission by the caregivers that those residents who had involved family members always received the best level of care. Thus, if you want your loved one to receive the best possible care, visit them regularly in the facility, become acquainted with the staff assigned to them, and ask questions. Moreover, when the facility schedules meetings that are designed to include the family, attend! Lack of involvement by the family only leads the staff to focus their efforts and attention upon other residents about whom they are being quizzed by more attentive family members. Unfortunately, even with regular and consistent family involvement, it may not be enough to bring about needed care for residents whose caregivers work in understaffed facilities. Instead, such facilities create an environment where “adequate and appropriate healthcare,” as defined in section 400.022 of the Florida Statutes, is impossible to achieve in light of the budget limitations their corporate hierarchy puts into place.

Chapter 400 of the Florida Statutes

          The Florida legislature made the determination that the rights, health, safety, and welfare of residents residing in long-term care facilities are not fully protected by the rules of the Department of Elderly Affairs or the Agency for health Care Administration or by the good faith of owners or operators of long-term care facilities. See Fla. Stat., § 400.0061. To address this problem, the legislature formed the Ombudsman Program, as set forth within Part I of Chapter 400 of the Florida Statutes. The legislature also went several steps further in creating Part II of Chapter 400, which addresses standards and their enforcement with respect to Florida’s nursing homes. FN1 Specifically, the Florida legislature explains the purpose behind Part II of Chapter 400 as follows:

Purpose - The purpose of this part is to provide for the development, establishment, and enforcement of basic standards for:

(1)          The health, care, and treatment of persons in nursing homes and related healthcare facilities; and

(2)          The maintenance and operation of such institutions that will ensure safe, adequate,  and appropriate care, treatment, and health of persons in such facilities.

Fla.Stat., § 400.011. The basic standards for nursing home residents have been labeled as “residents’ rights” and are set forth at length within the statue. See Fla. Stat., § 400.022. Similarly, the enforcement mechanism relative to a breach or failure by the nursing home to comply with these rights is addressed through the filing of a claim pursuant to section 400.023 of the Florida Statutes. See Fla. Stat., § 400.023.

I.          Resident’s Rights in Florida Nursing Homes

          Licensees of nursing home facilities within the state of Florida must adopt and make public a statement of rights and responsiblities of the residents of such facilities and are bound to treat the facilities’ residents accordingly. Fla. Stat., § 400.022(1). Moreover, section 400.022 of the Florida Statutes sets forth certain discreet rights of nursing home residents, which are as follows:

(a)          The right to civil and religious liberties, including knowledge of available choices and the right to independent personal decision, which will not be infringed upon, and the right to encouragement and assistance from the staff of the facility in the fullest possible exercise of these rights.

(b)          The right to private and uncensored communication, including, but not limited to, receiving and sending unopened correspondence, access to a telephone, visiting with any person of the resident’s choice during visiting hours, and overnight visitation outside the facility with family and friends in accordance with facility policies, physician orders, and Title XVIII (Medicare) and Title XIX (Medicaid) of the Social Security Act regulations, without the resident losing his or her bed. Facility visiting hours shall be flexible, taking into consideration special circumstances such as, but not limited to, out-of-town visitors and working relatives or friends. Unless otherwise indicated in the resident care plan, the licensee shall, with the consent of the resident and in accordance with policies approved by the agency, permit recognized volunteer groups, representatives of community-based legal, social, mental health, and leisure programs, and members of the clergy access to the facility during visiting hours for the purpose of visiting with and providing services to any resident.

(c)           Any entity or individual that provides health, social, legal, or other services to a resident has the right to have reasonable access to the resident. The resident has the right to deny or withdraw consent to access at any time by any entity or individual. Notwithstanding the visiting policy of the facility, the following individuals must be permitted immediate access to the resident:

              1.          Any representative of the federal or state government, including, but not limited to, representatives of the Department of Children and Family Services, the Department of Health, the Agency for Health Care Administration, the Office of the Attorney General, and the Department of Elderly Affairs; any law enforcement officer; members of the state or local ombudsman council; and the resident’s individual physician.

               2.          Subject to the resident’s right to deny or withdraw consent, immediate family or other relatives of the resident.

               3.          The facility must allow representatives of the State Long-Term Care Ombudsman Council to examine a resident’s clinical records with the permission of the resident or the resident’s legal representative and consistent with state law.

(d)          The right to present grievances on behalf of himself or herself or others to the staff or administrator of the facility, to governmental officials, or to any other person; to recommend changes in policies and services to facility personnel; and to join with other residents or individuals within or outside the facility to work for improvements in resident care, free from restraint, interference, coercion, discrimination, or reprisal. This right includes access to ombudsmen and advocates and the right to be a member of, to be active in, and to associate with advocacy or special interest groups. The right also includes the right to prompt efforts by the facility to resolve resident grievances, including grievances with respect to the behavior of other residents.

(e)          The right to organize and participate in resident groups in the facility and the right to have the resident’s family meet in the facility with the families of other residents.

(f)          The right to participate in social, religious, and community activities that do not interfere with the rights of other residents.

(g)          The right to examine, upon reasonable request, the results of the most recent inspection of the facility conducted by a federal or state agency and any plan of correction in effect with respect to the facility.

(h)          The right to manage his or her own financial affairs or to delegate such responsibility to the licensee, but only to the extent of the funds held in trust by the licensee for the resident. A quarterly accounting of any transactions made on behalf of the resident shall be furnished to the resident or the person responsible for the resident. The facility may not require a resident to deposit personal funds with the facility. However, upon written authorization of a resident, the facility must hold, safeguard, manage, and account for the personal funds of the resident deposited with the facility as follows:

               1.          The facility must establish and maintain a system that ensures a full, complete, and separate accounting, according to generally accepted accounting principles, of each resident’s personal funds entrusted to the facility on the resident’s behalf.

               2.          The accounting system established and maintained by the facility must preclude any commingling of resident funds with facility funds or with the funds of any person other than another resident.

               3.          A quarterly accounting of any transaction made on behalf of the resident shall be furnished to the resident or the person responsible for the resident.

               4.          Upon the death of a resident with personal funds deposited with the facility, the facility must convey within 30 days the resident’s funds, including interest, and a final accounting of those funds, to the individual or probate jurisdiction administering the resident’s estate, or, if a personal representative has not been appointed within 30 days, to the resident’s spouse or adult next of kin named in the beneficiary designation form provided for in s. 400.162(6).

               5.          The facility may not impose a charge against the personal funds of a resident for any item or service for which payment is made under Title XVIII or Title XIX of the Social Security Act.

(i)          The right to be fully informed, in writing and orally, prior to or at the time of admission and during his or her stay, of services available in the facility and of related charges for such services, including any charges for services not covered under Title XVIII or Title XIX of the Social Security Act or not covered by the basic per diem rates and of bed reservation and refund policies of the facility.

(j)          The right to be adequately informed of his or her medical condition and proposed treatment, unless the resident is determined to be unable to provide informed consent under Florida law, or the right to be fully informed in advance of any nonemergency changes in care or treatment that may affect the resident’s well-being; and, except with respect to a resident adjudged incompetent, the right to participate in the planning of all medical treatment, including the right to refuse medication and treatment, unless otherwise indicated by the resident’s physician; and to know the consequences of such actions.

(k)          The right to refuse medication or treatment and to be informed of the consequences of such decisions, unless determined unable to provide informed consent under state law. When the resident refuses medication or treatment, the nursing home facility must notify the resident or the resident’s legal representative of the consequences of such decision and must document the resident’s decision in his or her medical record. The nursing home facility must continue to provide other services the resident agrees to in accordance with the resident’s care plan.

(l)          The right to receive adequate and appropriate health care and protective and support services, including social services; mental health services, if available; planned recreational activities; and therapeutic and rehabilitative services consistent with the resident care plan, with established and recognized practice standards within the community, and with rules as adopted by the agency.

(m)         The right to have privacy in treatment and in caring for personal needs; to close room doors and to have facility personnel knock before entering the room, except in the case of an emergency or unless medically contraindicated; and to security in storing and using personal possessions. Privacy of the resident’s body shall be maintained during, but not limited to, toileting, bathing, and other activities of personal hygiene, except as needed for resident safety or assistance. Residents’ personal and medical records shall be confidential and exempt from the provisions of s. 119.07(1).

(n)          The right to be treated courteously, fairly, and with the fullest measure of dignity and to receive a written statement and an oral explanation of the services provided by the licensee, including those required to be offered on an as-needed basis.

(o)          The right to be free from mental and physical abuse, corporal punishment, extended involuntary seclusion, and from physical and chemical restraints, except those restraints authorized in writing by a physician for a specified and limited period of time or as are necessitated by an emergency. In case of an emergency, restraint may be applied only by a qualified licensed nurse who shall set forth in writing the circumstances requiring the use of restraint, and, in the case of use of a chemical restraint, a physician shall be consulted immediately thereafter. Restraints may not be used in lieu of staff supervision or merely for staff convenience, for punishment, or for reasons other than resident protection or safety.

(p)          The right to be transferred or discharged only for medical reasons or for the welfare of other residents, and the right to be given reasonable advance notice of no less than 30 days of any involuntary transfer or discharge, except in the case of an emergency as determined by a licensed professional on the staff of the nursing home, or in the case of conflicting rules and regulations which govern Title XVIII or Title XIX of the Social Security Act. For nonpayment of a bill for care received, the resident shall be given 30 days’ advance notice. A licensee certified to provide services under Title XIX of the Social Security Act may not transfer or discharge a resident solely because the source of payment for care changes. Admission to a nursing home facility operated by a licensee certified to provide services under Title XIX of the Social Security Act may not be conditioned upon a waiver of such right, and any document or provision in a document which purports to waive or preclude such right is void and unenforceable. Any licensee certified to provide services under Title XIX of the Social Security Act that obtains or attempts to obtain such a waiver from a resident or potential resident shall be construed to have violated the resident’s rights as established herein and is subject to disciplinary action as provided in subsection (3). The resident and the family or representative of the resident shall be consulted in choosing another facility.

(q)          The right to freedom of choice in selecting a personal physician; to obtain pharmaceutical supplies and services from a pharmacy of the resident’s choice, at the resident’s own expense or through Title XIX of the Social Security Act; and to obtain information about, and to participate in, community-based activities programs, unless medically contraindicated as documented by a physician in the resident’s medical record. If a resident chooses to use a community pharmacy and the facility in which the resident resides uses a unit-dose system, the pharmacy selected by the resident shall be one that provides a compatible unit-dose system, provides service delivery, and stocks the drugs normally used by long-term care residents. If a resident chooses to use a community pharmacy and the facility in which the resident resides does not use a unit-dose system, the pharmacy selected by the resident shall be one that provides service delivery and stocks the drugs normally used by long-term care residents.

(r)          The right to retain and use personal clothing and possessions as space permits, unless to do so would infringe upon the rights of other residents or unless medically contraindicated as documented in the resident’s medical record by a physician. If clothing is provided to the resident by the licensee, it shall be of reasonable fit.

(s)          The right to have copies of the rules and regulations of the facility and an explanation of the responsibility of the resident to obey all reasonable rules and regulations of the facility and to respect the personal rights and private property of the other residents.

(t)          The right to receive notice before the room of the resident in the facility is changed.

(u)          The right to be informed of the bed reservation policy for a hospitalization. The nursing home shall inform a private-pay resident and his or her responsible party that his or her bed will be reserved for any single hospitalization for a period up to 30 days provided the nursing home receives reimbursement. Any resident who is a recipient of assistance under Title XIX of the Social Security Act, or the resident’s designee or legal representative, shall be informed by the licensee that his or her bed will be reserved for any single hospitalization for the length of time for which Title XIX reimbursement is available, up to 15 days; but that the bed will not be reserved if it is medically determined by the agency that the resident will not need it or will not be able to return to the nursing home, or if the agency determines that the nursing home’s occupancy rate ensures the availability of a bed for the resident. Notice shall be provided within 24 hours of the hospitalization.

(v)          For residents of Medicaid or Medicare certified facilities, the right to challenge a decision by the facility to discharge or transfer the resident, as required under Title 42 C.F.R. part 483.13.

Fla. Stat., § 400.022(1)(a-v). These rights were broadly written by the legislature to ensure the safe, adequate, and appropriate care, treatment, and health of persons in this state’s nursing home facilities.

II.          Enforcement of a Resident’s Rights

The provision which allows a resident or someone acting on their behalf to initiate a claim against a nursing home for the violation of any of the resident’s rights listed above is section 400.023 of the Florida Statutes. See Fla. Stat., § 400.023. Specifically, the statute provides:

Any resident whose rights as specified in this part are violated shall have a cause of action. The action may be brought by the resident or his or her guardian, by a person or organization acting on behalf of a resident with the consent of the resident or his or her guardian, or by the personal representative of the estate of a deceased resident regardless of the cause of death.

Fla. Stat., § 400.023. This section further spells out the elements of such a claim, providing that:

(2)          In any claim brought pursuant to this part alleging a violation of resident’s rights or negligence causing injury to or the death of a resident, the claimant shall have the burden of proving, by a preponderance of the evidence, that:

             (a)          The defendant owed a duty to the resident;

             (b)          The defendant breached the duty to the resident.

             (c)          The breach of the duty is a legal cause of loss, injury, death, or damage to the resident; and

             (d)          The resident sustained loss, injury, death, or damage as a result of the breach.

Fla. Stat., § 400.023(2). The duty element is generally not difficult to satisfy with respect to residents of nursing homes. The fact that a resident sustained damages may also not be a difficult element to establish, as these cases often involve death or significant injury to these individuals. More difficult is the demonstration that the nursing home breached its duty and that the actions of, or failure to act by, the nursing home and/or its staff was the, or a, cause of the injury or death of the resident. It is not enough for the family or average lay witness to testify about these matters. Rather, the law requires a plaintiff in such cases to establish “causation” through the testimony of the resident’s treating health care providers and/or expert witnesses retained to review the matter. In either instance, the testimony often involves complicated medical matters and requires the use of an attorney familiar with this area of the law.

III.         How Does One Know if a Resident’s Rights Have Been Violated?

As a lay person – meaning someone lacking healthcare training, education, and experience – it can be difficult to determine whether there has been a lack of, or inadequate, care of a loved one. The following are typical areas of inquiry when considering whether a resident’s rights are being, or have been, violated:

1)          Does the nursing home have a significant smell of urine or feces?

This may be due to the fact that staff is not timely cleaning its incontinent residents. Aside from being a dignity issue, long-time exposure to urine or feces, may accelerate skin breakdown and aid in the development of pressure sores. It may also lead to infection, particularly so with urinary incontinence in the elderly female residents.

2)          When staff assistance is needed, are they readily available or do they respond quickly to call lights?

Staff in nursing homes are often overworked, for budgetary reasons, and simply can not accomplish the numerous tasks on behalf of those residents placed within their charge. Such inattentiveness can lead to a number of problems with, for example, hygiene, nutrition, hydration, or safety.

3)          Has there been a sudden change in the resident’s weight?

Weight loss can have devastating effects on the elderly as they often no longer have significant weight reserves. Malnutrition, as typically evidenced by sudden, unplanned weight loss, can wreak havoc on their health, and such weight loss should be monitored closely.

4)          Has there been a sudden change in the resident’s mental status?

Although, certainly, watching a loved one suffer from a decline in cognitive function can be devastating, sometimes such changes are due to inadequate or inappropriate care. Inappropriate medication or insufficient dosages or an over-dosage of medication can also cause changes in mentation. Similarly, an underlying and undiagnosed infection and other disease processes can be the root cause of such changes in behavior. Particularly dangerous is the fact that an undiagnosed infection can lead to sepsis, meaning that the infection has become systemic in nature, which can lead to death of the resident. Similarly, injuries to the head may also potentially cause sudden changes in awareness, cognition, and behavior.

5)          Is the resident suffering from pressure sores?

Most pressure sores are preventable with proper repositioning of the resident, whether by the staff physically doing so on a regular schedule or through the use of repositioning devices. The development of such sores may be a sign of lack of care by the staff.

6)          Does the resident have unexplained bruises or, especially if uncommunicative, do they seem to be in unexplained pain?

Sometimes residents do not receive adequate supervision within the nursing home facility and they sustain falls and/or other injuries. If the nursing home staff is not particularly attentive, the only record of such an injury may be the bruising of the resident or, worse yet, a fracture. Individuals suspected of having fallen should be carefully evaluated for fractures, head injuries, and related injuries. In some instances, also, facilities have been known to illegally restrain residents to prevent them from falling. Aside from being a dignity issue, illegal restraints have led at times to other types of injuries, including bruising and even strangulation.

7)          Has the resident been attacked by another resident?

A nursing home can be held responsible for allowing another resident to attack your loved one, if it can be demonstrated that the facility should have been on notice of the risk of such conduct. Often this is the case in dementia wards, where residents have a history of being abusive to caregivers and other residents.

As a side note, in some instances residents are attacked by staff of the nursing home. Such cases are particularly egregious when such staff holds previous convictions or has a work history of being terminated at other facilities for such actions, but is nevertheless employed at the facility in which your resident resides.

These are a few examples of the types of violations that may occur in the nursing home setting. For a complete evaluation of a potential claim, we encourage you to contact us.

IV.          Statue of Limitation 

          Any case asserting claims under Chapter 400 of the Florida Statutes must be brought within two years from the time that the alleged incident[s] occurred or within two years from the time the incident[s] is [are] discovered or should have been discovered with the exercise of due diligence. Fla. Stat., § 400.0236. The Florida legislature mandates that under no circumstances shall any such claim be brought in excess of four years from the date of the incident[s]. Id.

Conclusion

          Please remember that your rights, or those of a family member, as guaranteed by Chapter 400 of the Florida Statutes, can not be enforced indefinitely. If you have any concern about whether your rights or those of a loved one have been violated, we encourage you to seek advice from an attorney who has extensive experience in this area of the law. We also encourage you to explore our website-www.urbanthier.com- to learn more about Urban Thier Federer & Jackson, P.A., its attorneys, and the firm’s practice areas. Moreover, we further encourage you to become informed about your, and/or your family member’s, rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources, and ability to litigate your case through the time of trial and, if necessary, appeal.

          Should you retain this firm, we will evaluate your case and advise you as to whether, in our opinion, you may have a valid claim for nursing home abuse and/or neglect. Any claim that we pursue will be based upon a contingency fee basis, meaning that unless you recover any proceeds against the nursing home, we are not owed a fee.

This website provides general information only. Statutory information is only current through 2008, and is subject to change. Please note that we do not represent you and can not take any action on your behalf unless and until we enter into a formal written Legal Represenation Agreement. If we do not respond to your inquiry or are unable to take your case, please contact another Florida law firm immediately to have your case assessed.

The hiring of a law firm is an important decision that should not be based solely on advertisements. Before you decide, ask for information reflecting qualifications and experience with respect to such matters.

By John L. Urban, Shareholder-Urban Thier Federer & Jackson, P.A.

       The law firm of Urban Thier Federer & Jackson, P.A., continues to represent clients throughout the United States and Europe who wish to terminate their pre-construction contracts and purchase agreements for condominiums and homes located in the Central Florida area and to receive back their deposits. The firm is most active in the greater Orlando area (throughout Orange County, Florida) and the greater Disney/Celebration area (throughout Osceola County, Florida). See previous Pre-Construction Contract Termination and Deposit Return Litigation blog on this website for additional information at Pre-Construction Contract Termination and Deposit Return Litigation.

       Through its multiple victories and precedent setting Court decisions, Urban Thier Federer & Jackson, P.A., has established itself as a leader of the Florida deposit return litigation plaintiffs’ bar. Through its relationship with other leading firms and attorneys throughout the State of Florida, the firm routinely assists buyers who wish to terminate their pre-construction contracts and purchase agreements for condominiums and homes located outside the Central Florida area to identify leading lawyers and law firms in other areas of Florida.

       Since the start of the Florida real estate market down turn or correction, the firm has already won multiple cases in both federal and state courts as well as arbitration. Through these victories, the firm has succeeded in having the client purchasers’ contracts terminated (relieving the client from any further liability or responsibility under the contract) and having final judgments entered for the full amount of all deposits, including interest, attorney fees, and court costs.

Legal Basis for Termination

       The primary causes of action utilized by Urban Thier Federer & Jackson, P.A., to achieve these victories are 15 U.S.C.  §§ 1701-1720, the Interstate Land Sales Full Disclosure Act (also known as ILSA or ILSFDA), Florida Statues Chapters 718 and 720, breach of contract and, depending on each buyers’ potential circumstances, other claims.

Interstate Land Sales Full Disclosure Act

       The Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 et. seq., is federal law which was originally enacted in 1968 as an antifraud statue utilizing disclosure as its primary tool to protect purchasers. ILSFDA remains a viable cause of action and is enforced by the Courts to allow purchasers to terminate their pre-construction contracts. However, it is vital that purchasers act in a timely manner because ILSFDA has a strict statute of limitations/time limit which bars most claims three years (and arguably some claims as early as two years) after the date that the purchaser signs the pre-construction contract or purchase agreement. Once the applicable time period passes, a purchaser may be barred from bringing a claim under ILSFDA.

Florida Statues Chapter 718 and 720

       Florida Statutes Chapters 718 (for condominium developments) and 720 (for housing developments with a homeowners association) are Florida laws which require certain written disclosures of rights within the contract or purchase agreement. These laws also require the developer to disclose certain information to the purchaser both at the time of signing of the contract or purchase agreement (including, but not limited to, condominium and homeowners association documents and a disclosure summary listing fees, assessments and other information). The purchaser has a 15 day right of rescission which starts from the time that he or she receives these documents and any amendments.

15 U.S.C. § 77 (Securities Act of 1933) and Florida Statues Chapter 517 (Florida Securities and Investor Protection Act)

       For the firm’s clients who have pre-construction contracts or purchase agreements for the purchase of condominium units which constitute condominium hotels (a/k/a condo hotel - not  fractional or timeshare ownership), the firm has been filing lawsuits which include counts for federal and state securities law violations. Under most condo hotel pre-construction contracts or purchase agreements the purchaser’s use of the unit as a personal residence is subject to such limitations as use for no more than 179 days per year, use only when not booked under the rental program, and other limitations. As a result, the purchaser may no longer be simply purchasing a condominium unit.

       The purchaser may instead (or in addition to being deemed to be purchasing a condominium unit) be entering into what the securities laws characterize as an “investment contract” subject to both federal and Florida securities laws. Some of the basic elements of a securities law claim include an investment of money, with an expectation of profit, a return on investment that is dependent on the efforts of another and a risk of loss. The securities laws have strict statutes of limitations/time periods within which a lawsuit must be started. Some of the time bars are as short as one year from when the purchaser knew or should have known (actual or constructive notice) that securities laws may have been violated.

Breach of Contract

       Most pre-construction contracts or purchase agreements contain terms, conditions and language intended to bring the developer/seller in compliance with the above and other statutory laws. As a result, many of the above protections also become binding terms and conditions of the pre-construction contract or purchase agreement.

Maximizing Each Client’s Chances of Success

       In addition to having a thorough understanding of the above laws and potential causes of action, Urban Thier Federer & Jackson, P.A. has been successful in combining various causes of action at the summary judgment (before trial) stage of litigation. For example, in certain situations where a developer claims to have complied with ILSFDA by making an unconditional commitment to complete construction within 2 years (which is the most common exemption utilized by developers to avoid having to provide the purchaser with a ILSFDA compliant property report prior to signing) but then fails to complete construction within 2 years, the Court may have no alternative except to find that either ILSFDA was violated (because the pre-construction contract or purchase agreement does not contain an unconditional commitment to complete construction within 2 years) or the contract was breached due to the developer’s failure to timely perform (in Florida completion is determined by the date a certificate of occupancy is issued by the responsible government authority for the unit at issue). Either way, the client prevails.

       Another example is the interplay between ILSFDA or Chapter 718 and the securities laws. If a developer takes the position that ILSFDA and/or Chapter 718 do not apply to the unit at issue because it is not a property that falls within the definition of a lot (defined under ILSFDA as a residential, condominium, commercial or industrial lot) or a condominium (defined in Chapter 718 as two or more residential units subject to a condominium association), then the transaction may be found to be a security and subject to the securities laws.

Conclusion

       The first step in protecting yourself as a buyer is to contact an attorney - one who is not affiliated with the developer - in order to understand your particular contract(s) and circumstances. The above analysis is intended to only serve as an example and nothing within this blog or contained on this website should be construed as the giving of legal advice. You should also note that some developers fully comply with the above and other laws and such contracts may not be subject to rescission, termination or other remedies.

       Many pre-construction contracts and purchase agreements appear to provide the legally required federal and state disclosures and protections - many even naming the various laws right in the contract. However, a qualified lawyer with the proper experience in real estate litigation and transactions can quickly identify weaknesses in the contract which may subject it to attack via the above referenced and other laws and causes of action.

       We encourage you to explore our website - www.urbanthier.com (English language) and www.urbanthier.de (German language) - to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

By John L. Urban, Shareholder - Urban Thier Federer & Jackson, P.A

Background

       During the height of the Florida real estate market, speculators, investors, and others eagerly entered into pre-construction real estate purchase contracts, paying deposits in the $10,000’s and even $100,000’s for the opportunity to resell or flip the properties and make “easy money” in a hot market. However, with the significant downturn or correction of the Florida real estate market, many of these buyers are locked into real estate purchase and sale contracts which commit them to close on the purchase of properties which they no longer want and which no longer have the potential for a quick profit. The developers/sellers want these individuals to believe that they have only two options: 1) walk away and forfeit their deposit and/or face a lawsuit by the developer for additional damages or 2) close on the sale (assuming they can secure sufficient financing) and potentially own a property worth significantly less than what they were forced to pay for it. However, there is a third option that developers do not want you to know about – see below.

       The law firm of Urban Thier Federer & Jackson, P.A. has helped and continues to help buyers who are parties to pre-construction purchase agreements for condominium units and houses located in Florida and who wish to terminate those agreements and recover their deposits. We have successfully represented numerous individuals including buyers located within Florida, in states outside of Florida and within the European Union, including England. With offices in Orlando, Florida, and Munich, Germany, we can assist buyers throughout the United States and European Union countries in terminating their pre-construction purchase agreements. In many cases our clients are not even required to travel to Florida.

       What the developers do not want you to know is that they are required to comply with certain federal and state laws which are meant to protect buyers from overreaching developers. Almost all pre-construction contracts are written by attorneys for the developer and are one-sided contracts with the goals of protecting the developer/seller and locking in the buyer/purchaser. Virtually none of these developers elect to use the Florida Bar approved (FLA-BAR) standard purchase and sale agreement, which aims to bring more balance to real estate purchase and sale agreements. However, in their quest to create the “perfectly one-sided contract,” these developers and their attorneys often go too far and break the laws that are in place to protect potential buyers.

The Third Option – Contract Termination/Deposit Return

       The first step in protecting yourself as a buyer is to contact an attorney - one who is not affiliated with the developer - in order to understand your particular contract(s) and circumstances. Almost all pre-construction purchase agreements appear to provide the legally required federal and state disclosures and protections – many even naming the various laws right in the pre-construction purchase and sale agreement. However, a qualified lawyer with the proper experience in real estate litigation and transactions can quickly identify any weaknesses in the contract which may subject it to attack. The primary legal causes of action most often utilized by Urban Thier Federer & Jackson, P.A. are claims under 15 U.S.C. §§1701-1720, the Interstate Land Sales Full Disclosure Act (also known as ILSA or ILSFDA), claims under Florida Statutes Chapters 718 and 720, claims for breach of contract and, depending on each buyers’ potential circumstances, other claims.

       The Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§1701-1720, (a/k/a ILSA or ILSFDA), is a federal law which was originally enacted as part of the Housing and Urban Development (“HUD”) Act of 1968 as an antifraud statute utilizing disclosure as its primary tool and was enacted to protect purchasers. Essentially the act requires every developer of a condominium or housing development in excess of 100 units to provide each purchaser with a comprehensive Property Report prior to signing any purchase agreement or contract. Most developers either provide the Property Report or elect to utilize one of the exemptions to ILSFDA compliance. However, given the complexities of ILSFDA compliance, many developers either provide an insufficient Property Report or claim an exemption but then fail to properly qualify for the exemption. The consequences to developers for failing to properly comply with ILSFDA are that the purchaser may elect, at the purchaser’s option, to rescind and terminate the contract, recover all deposits (plus interest) and to be awarded attorney fees and costs.

       Florida Statutes Chapters 718 (for condominium developments) and 720 (for housing developments with a homeowners association) are Florida laws which are meant to protect buyers of Florida houses and condominiums. Although not as complex as ILSFDA, many developers also fail to comply with these laws by failing to include all of the required statutory language and disclosures in the pre-construction purchase and sale agreement. As a consequence of such failure, purchasers may be entitled to rescind/terminate the contract and have their deposit(s) returned. A careful review of the pre-construction purchase and sale agreement by an experienced attorney may also reveal a basis for contract termination and deposit recovery, based upon a breach of the contract by the developer. These contracts are usually many pages long and cover varying issues. The developer, just as the buyer, is required to comply with the contract terms and may be in breach – allowing the buyer to terminate the contact.

Conclusion

       If you are a buyer/purchaser who is a party to a pre-construction purchase and sale agreement, we encourage you to consult with us or another law firm and explore your rights and options. Urban Thier Federer & Jackson, P.A. can provide you with a consultation and, in many instances, we can represent buyers on a contingency basis and/or refer you to another law firm. Urban Thier Federer & Jackson, P.A. has represented and/or currently represents buyers in connection with housing developments and condominium projects throughout central Florida – including in connection with:

-101 Eola Condominiums, a Condominium, in Orlando, Orange County, Florida, by BA Eola, LLC (Condominium Development)

-Floridays Resort in Kissimmee, Osceola County, Florida, by Floridays Orlando Ventures, LLC (Condominium Development)

-Halifax Landing, a Condominium, in South Daytona, Volusia County, Florida, by Halifax Landing Condominium Limited Liability Company (Condominium Development)

-Lake Buena Vista Resort at Lake Buena Vista Drive, Kissimmee, Osceola County, Florida, by Lake Buena Vista Resort, LLC (Condominium Development)

-Lake Eve Resort at Lake Buena Vista, Orlando, Orange County, Florida, by KA and KM Development, Inc. (Condominium Hotel Development)

-Mona Lisa at Celebration, a Condominium Hotel, in Celebration, Osceola County, Florida, by Mona Lisa at Celebration, LLC (Condominium Hotel Development)

-Orangebranch Bay in Kissimmee, Osceola County, Florida by Mercedes Homes, Inc. (Housing Development)

-The Paramount on Lake Eola, a Condominium, in Orlando, Orange County, Florida, by Paramount Lake Eola, L.P. (Condominium Development)

-The Peninsula at St. John’s Center, in Jacksonville, Duval County, Florida, by St. Johns Phase 2 LLLP (Condominium Development)

-The Plaza at Solaire in Orlando, Orange County, Florida, by Plaza Court, LLP (Condominium Development)

-The Point Orlando Resort Condominium, in Orlando, Orange County, Florida, by Seymour International, Inc. (Condominium Hotel Development)

-Veranda Park, in Orlando, Orange County, Florida, by VP Phase III, Ltd. (Condominium Development)

       In addition to the above developers and projects, Urban Thier Federer & Jackson, P.A. is also accepting clients in connection with other developers and projects:

-Grand Palisades Resort at Lake Austin Reserve, in Orlando, Orange County, Florida, by Lake Austin Properties I Ltd. (Condominium Hotel Development)

-Oakmont Preserve, in Malabar, Brevard County, Florida, by Superior Homes & Investments, LLC (Condominium Development)

-Regent Park, a Condominium, in Orlando, Orange County, Florida, by Regent Park Associates LLC (Condominium Development)

-Seaview Place at Gulf Landings, a Condominium, in New Port Richey, Pasco County, Florida, by Seaview Place Developers, Inc. (Condominium Development)

       We encourage you to explore our websites – www.urbanthier.com (English language) and www.urbanthier.de (German language) – to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.