In a previous post, I mentioned that you'll be seeing more and more lawsuits against high rise developers. Well, today comes word that some individuals who've purchased units in the Vegas Grand project are now suing the developer of the project, alleging breach of contract, breach of good faith and fair dealing, fraud, and violations of Nevada laws against deceptive trade practices.
If what they claim is true, Del American (the developer of Vegas Grand) notified buyers in April that their current reservations would be cancelled and were given options to re-purchase their same units at higher prices than the original reservation price. Otherwise, Del American would offer the units for sale to the public priced from $300K to more than $1 million.
Needless to say, this is a completely unfair practice by the developer, but based on the recent appreciation of the Las Vegas high rise condo market, you can see where Del American may be looking at the original reservation prices and saying "we could have gotten so much more". Either way, they've got a marketing nightmare on their hands right now, and I'll be curious to see what kind of spin they'll give this at their preview event this afternoon at the Wynn Las Vegas Resort Hotel.
Once again, it highlights the fact that while immensly profitable, you really have to do your homework in this market, and aligning yourself with a reputable and knowledgeable agent can save you both time and money in the long run.
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