Condo developer’s lie hurts resale values

Buyers' recourse limited without written proof

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

DEAR BOB: When I purchased a new condominium last year, I was told it would be an owner-occupied building and investor-speculators would not be allowed. But I later learned friends, family and acquaintances of the builder were allowed to invest and buy all the best units at the lowest prices. Now my building is mostly renters rather than owner-occupied units. This hurts the value of my condo, which I must now sell due to job relocation. Do I have any legal recourse against the builder for misrepresentation or fraud since he lied to me? --Michele C. DEAR MICHELE: You were very wise to inquire if any condos would be sold to non-resident investor-speculators. But unless you can prove the builder's misrepresentation with a written statement to comply with the Statute of Frauds, you don't have any legal recourse against that builder. Purchase Bob Bruss reports online. If non-residents own a large percentage of units, the maintenance quality usually declines and problems develop. Many mortga...