We purchased property in a development a few years ago. The development has stalled, we cannot sell the property or build on it. Can we bring class action lawsuit against the developer?

In the early 2000s, new developments were springing up all over North Carolina. Property values were skyrocketing and everyone wanted to participate in the huge gains experienced by real estate investors. In late 2005, the music stopped leaving many real estate investors rushing to find a safe seat.

Now years later, many of these developments have stalled. Incomplete amenities, roads and utilities have left some developments uninhabitable.  Others are still struggling to complete the different phases of development.

If you invested in one of these communities, you may or may not have a case against the developer or the lender.  You may hear from developers, “Read the fine print.” You may hear from lenders, “Still, you barrowed the money and promised to repay”.  You may hear, “Sometimes investments produce profit and sometimes they don’t.”  All of these things are true.

However, where a developer represents that the property is nearly “Sold Out!” and phases are “Sold Out!” in one or two days there may be liability if that is not true.  Where banks participate in sales events by offering special financial incentives to buy in a particular development there may be liability.  Where a developer has sold many lots and made lots of money but then failed to complete community infrastructure or amenities, there may be liability.

Each case is different.  Whether there is a case will depend of the development, the developer, the lender and the buyer. Call us at (910) 341-7570 to discuss your situation and your options.

R. Clarke Speaks
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Trial Lawyer and Founder of Speaks Law Firm, P.C.