Okay, now that I have had an opportunity to reflect and consider, here are my thoughts at this point:
1) I am not an attorney and my advice/point of view is not a legal opinion
2) I am a Realtor who represents almost 50 purchasers of Bristol Development’s projects, I am also a buyer in these projects
3) I am a fair and reasonable person who considers myself an advocate for my clients and the city of Nashville alike
These are extraordinary economic times. Many of us have never experienced an economy or a banking atmosphere anything like the one we currently experience. It is scary, it is terrifying, and it is uncharted.
That being said, it is my suggestion that we all put the cards on the table and stop playing this high stakes game of real estate poker. It is time for a truce and for cooler heads to prevail.
No one deserves to make a profit on the purchase of their Icon purchase. The buyer, the seller, the developer or the builder. Seriously. We have all taken a risk. The developer has taken a risk with the bank, the buyer has taken a risk with the developer and their own bank, the construction company has also taken a risk with their bank and the developer. Without going into a huge analysis or dissertation on how the American banking industry has crippled, fooled and hurt us all, here is my suggestion:
Buyers who have contracted to purchase a condo in the Icon, including myself, you need to consummate your purchase. Why? Because you signed a piece of paper that promised you would. But, you are not going to pay what your contract says. Instead, the developer, builder and all banks involved are going to sit down in an open forum to share their actual, to date costs with all of us. We are all going to agree that interest is out the window and that actual, hard costs are the key to this equation.
Listen, no one wins here…but, no one loses either. We ALL have taken a risk and we all were wrong. That does not mean that one party or the other needs to be left holding the bag. Buyers, the Bristol Development Group shouldn’t bear all of the costs. Sellers, same thing. These buyers don’t owe you more than what the market will bear. This is simply true and no one will ever be able to squeeze water out of a stone.
Seriously, we have a unique opportunity to pave a bold new road in these ridiculous economic times. It is a road of compromise and a road of equitable fairness. I am bold enough to walk down this path. The question is, are you?
UPDATE 6/5/09:
It was reported in the Nashville Business Journal today that the Bristol Development Group has indeed filed lawsuits against 3 individuals for damages totaling around $80,000. When asked by the NBJ as to Bristol’s motivation for bringing these lawsuits, CEO Charles Carlisle simply replied, “People who sign a contract should expect to perform.” It is interesting to note that the Bristol Group was able to resell all of the condos that fell out of contract, some for higher prices.
I am no fool, it is clear to me that Bristol is sending this loud and clear message: If you don’t plan on closing on your contracted condo, you will get sued no matter if we resell your unit or not. It is also clear that the developers aim to keep this entire project under contract as long as possible in order to comply with the new FHA loan guidelines.
UPDATE 7/27/09:
I just found out that a subcontractor had placed a mechanics lien on the Icon several months ago and that Doster, the construction company on the Velocity project has placed a $570,000+ lien on that project as well. Remember what I said about everyone losing? The Icon and Velocity are just lucky that their equity partner, MarketStreet Enterprises, has some of the deepest pockets in the US.
February 25, 2009, 4:42 pm
I am an ICON contract holder and couldn’t agree more with this post. It’s exactly what I would want to happen. I understand the developer has speculated just as I have speculated. I’m willing to live up to my responsibilities, but within reason; I expect some give on their end at this point. Putting all the cards on the table so I could see their potential profits or losses would help me feel good about an agreed upon adjusted price. I think they need to bring the prices down to reasonable market prices today (which they insist hasn’t changed, but that’s ridiculous).
Much of this had to do with them finishing late. Had they finished 3 months before deadline the market was in much better shape. As far as I’m concerned they were 26months before my unit was available, and my contract reads 24months. They say Force Majeure but that may be open for debate in arbitration.
Much like the failing banks, If they don’t make some concessions now they may loose more in the end. For us buyers to agree to cover their expenses, but receive some kind of adjusted price just makes sense.
February 25, 2009, 11:42 pm
I am an ICON contract holder and couldn’t agree more with this post. It’s exactly what I would want to happen. I understand the developer has speculated just as I have speculated. I’m willing to live up to my responsibilities, but within reason; I expect some give on their end at this point. Putting all the cards on the table so I could see their potential profits or losses would help me feel good about an agreed upon adjusted price. I think they need to bring the prices down to reasonable market prices today (which they insist hasn’t changed, but that’s ridiculous). Much of this had to do with them finishing late. Had they finished 3 months before deadline the market was in much better shape. As far as I’m concerned they were 26months before my unit was available, and my contract reads 24months. They say Force Majeure but that may be open for debate in arbitration.Much like the failing banks, If they don’t make some concessions now they may loose more in the end. For us buyers to agree to cover their expenses, but receive some kind of adjusted price just makes sense.
February 25, 2009, 11:42 pm
I am an ICON contract holder and couldn’t agree more with this post. It’s exactly what I would want to happen. I understand the developer has speculated just as I have speculated. I’m willing to live up to my responsibilities, but within reason; I expect some give on their end at this point. Putting all the cards on the table so I could see their potential profits or losses would help me feel good about an agreed upon adjusted price. I think they need to bring the prices down to reasonable market prices today (which they insist hasn’t changed, but that’s ridiculous). Much of this had to do with them finishing late. Had they finished 3 months before deadline the market was in much better shape. As far as I’m concerned they were 26months before my unit was available, and my contract reads 24months. They say Force Majeure but that may be open for debate in arbitration.Much like the failing banks, If they don’t make some concessions now they may loose more in the end. For us buyers to agree to cover their expenses, but receive some kind of adjusted price just makes sense.
February 25, 2009, 11:42 pm
I am an ICON contract holder and couldn’t agree more with this post. It’s exactly what I would want to happen. I understand the developer has speculated just as I have speculated. I’m willing to live up to my responsibilities, but within reason; I expect some give on their end at this point. Putting all the cards on the table so I could see their potential profits or losses would help me feel good about an agreed upon adjusted price. I think they need to bring the prices down to reasonable market prices today (which they insist hasn’t changed, but that’s ridiculous). Much of this had to do with them finishing late. Had they finished 3 months before deadline the market was in much better shape. As far as I’m concerned they were 26months before my unit was available, and my contract reads 24months. They say Force Majeure but that may be open for debate in arbitration.Much like the failing banks, If they don’t make some concessions now they may loose more in the end. For us buyers to agree to cover their expenses, but receive some kind of adjusted price just makes sense.
February 26, 2009, 11:21 am
I agree with Jim and Grant and would like to know if ICON contract holders are seeking legal representation as a group to deal with the ICON owners?
February 26, 2009, 6:21 pm
I agree with Jim and Grant and would like to know if ICON contract holders are seeking legal representation as a group to deal with the ICON owners?
February 26, 2009, 6:21 pm
I agree with Jim and Grant and would like to know if ICON contract holders are seeking legal representation as a group to deal with the ICON owners?
February 26, 2009, 6:21 pm
I agree with Jim and Grant and would like to know if ICON contract holders are seeking legal representation as a group to deal with the ICON owners?
February 26, 2009, 11:43 am
Yes. I wanted to add that as well – please let us know if there are any groups already organized or if you want to get organized. I’m willing to help in any way!
February 26, 2009, 6:43 pm
Yes. I wanted to add that as well – please let us know if there are any groups already organized or if you want to get organized. I’m willing to help in any way!
February 26, 2009, 6:43 pm
Yes. I wanted to add that as well – please let us know if there are any groups already organized or if you want to get organized. I’m willing to help in any way!
February 26, 2009, 6:43 pm
Yes. I wanted to add that as well – please let us know if there are any groups already organized or if you want to get organized. I’m willing to help in any way!
February 26, 2009, 11:53 am
To the best of my knowledge there are no groups who have brought any legal action against the Bristol Development Group. I am also not sure that bringing that action is the best solution either. In the spirit of “working things out”, I would suggest an open forum meeting between the buyers and the developer first.
February 26, 2009, 6:53 pm
To the best of my knowledge there are no groups who have brought any legal action against the Bristol Development Group. I am also not sure that bringing that action is the best solution either. In the spirit of “working things out”, I would suggest an open forum meeting between the buyers and the developer first.
February 26, 2009, 6:53 pm
To the best of my knowledge there are no groups who have brought any legal action against the Bristol Development Group. I am also not sure that bringing that action is the best solution either. In the spirit of “working things out”, I would suggest an open forum meeting between the buyers and the developer first.
February 26, 2009, 12:41 pm
Agreed Grant. I wasn’t speaking of organizing for legal action but to organize buyers so we speak with one voice working towards getting Bristol to the table. The more of us the better. Keep us posted and let me know if there’s anything I can do.
February 26, 2009, 7:41 pm
Agreed Grant. I wasn’t speaking of organizing for legal action but to organize buyers so we speak with one voice working towards getting Bristol to the table. The more of us the better. Keep us posted and let me know if there’s anything I can do.
March 3, 2009, 6:25 am
Excellent post! While I agree wholeheartedly with the posts here, I see two problems:
1) Bristol HAS, in fact, personally to me (a contract buyer) offered me the opportunity to “buy down” on a smaller unit. Without so much as saying, it was obvious that I could make an offer on the smaller unit that was lower than the original price (of course, Bristol has the legal recourse to charge the original purchaser the difference). The problem is that this smaller unit is not very rentable (according to the Bristol leasing agent) and I am not able to pay the mortgage on it for any long period of time. It would bankrupt me.
2) If Bristol lowers to “market price”, they will have to answer to the 25% of purchasers who did, in fact, close at the original purchase agreement price and will be fuming mad that they overpaid – a definite legal can of worms.
Keep in mind that you cannot take legal action. Your contract calls for “mediation” (as opposed to “arbitration”). Bristol will not call for mediation until your unit is sold so that they have a complete price list of damages up to that point. If you call for mediation now, you pay for it – about $4,000.
I talked to my attorney who in the “broad scope” of things said that the normal turn of events would be
1) your unit finally gets sold and mediation starts.
2) the mediator will find you in default for the monetary damages involved – ball park $25,000 +.
3) If you do not pay, you can be sued for that amount + attorney’s fees. You will most likely lose and have a judgement against you which will put your assets at risk, including your home.
4)If you go in before judgement and negotiate your damage responsibilities down, Bristol will probably be willing to do that, but you still lose lots of $$$$$.
All that being said, I think the initial idea of a group forum of all interested parties is still the absolute best idea. After my meetings with them, I sincerely believe that Bristol is willing to bend and work with us.
Sorry for the long comment.
March 3, 2009, 1:25 pm
Excellent post! While I agree wholeheartedly with the posts here, I see two problems:1) Bristol HAS, in fact, personally to me (a contract buyer) offered me the opportunity to “buy down” on a smaller unit. Without so much as saying, it was obvious that I could make an offer on the smaller unit that was lower than the original price (of course, Bristol has the legal recourse to charge the original purchaser the difference). The problem is that this smaller unit is not very rentable (according to the Bristol leasing agent) and I am not able to pay the mortgage on it for any long period of time. It would bankrupt me.2) If Bristol lowers to “market price”, they will have to answer to the 25% of purchasers who did, in fact, close at the original purchase agreement price and will be fuming mad that they overpaid – a definite legal can of worms.Keep in mind that you cannot take legal action. Your contract calls for “mediation” (as opposed to “arbitration”). Bristol will not call for mediation until your unit is sold so that they have a complete price list of damages up to that point. If you call for mediation now, you pay for it – about $4,000.I talked to my attorney who in the “broad scope” of things said that the normal turn of events would be1) your unit finally gets sold and mediation starts.2) the mediator will find you in default for the monetary damages involved – ball park $25,000 +.3) If you do not pay, you can be sued for that amount + attorney’s fees. You will most likely lose and have a judgement against you which will put your assets at risk, including your home.4)If you go in before judgement and negotiate your damage responsibilities down, Bristol will probably be willing to do that, but you still lose lots of $$$$$.All that being said, I think the initial idea of a group forum of all interested parties is still the absolute best idea. After my meetings with them, I sincerely believe that Bristol is willing to bend and work with us.Sorry for the long comment.
March 27, 2009, 9:58 pm
I have a contract on one of the units at the Icon under the “Affordable Program” which is for lower income buyers. The contract does state that it is contingent on financing, but says that once lender’s approval is received contingency is removed (this was over a year ago). At the time of contract I was pre-approved, but no longer qualify for a loan under today’s lending guidelines. I have provided this information to the agent that sold me the unit who told me up front that because this was an “Affordable” unit it would not be a problem to get my earnest money back if I couldn’t qualify. Now they are saying they will not release me from this contract. How am I suppposed to purchase this if I can’t get a loan?
March 28, 2009, 4:58 am
I have a contract on one of the units at the Icon under the “Affordable Program” which is for lower income buyers. The contract does state that it is contingent on financing, but says that once lender’s approval is received contingency is removed (this was over a year ago). At the time of contract I was pre-approved, but no longer qualify for a loan under today’s lending guidelines. I have provided this information to the agent that sold me the unit who told me up front that because this was an “Affordable” unit it would not be a problem to get my earnest money back if I couldn’t qualify. Now they are saying they will not release me from this contract. How am I suppposed to purchase this if I can’t get a loan?
March 28, 2009, 4:58 am
I have a contract on one of the units at the Icon under the “Affordable Program” which is for lower income buyers. The contract does state that it is contingent on financing, but says that once lender’s approval is received contingency is removed (this was over a year ago). At the time of contract I was pre-approved, but no longer qualify for a loan under today’s lending guidelines. I have provided this information to the agent that sold me the unit who told me up front that because this was an “Affordable” unit it would not be a problem to get my earnest money back if I couldn’t qualify. Now they are saying they will not release me from this contract. How am I suppposed to purchase this if I can’t get a loan?
May 14, 2009, 6:47 pm
Wait til you hear the rest of the story….
May 15, 2009, 1:47 am
Wait til you hear the rest of the story….
May 14, 2009, 8:00 pm
I have heard that at least one buyer has gone to arbitration and was apparently successful in getting out of their contract. I have no way of really confirming this statement other than to say that it came from a very credible source in the industry. Keep in mind that there may have been extenuating circumstances that allowed for this successful action.
There is also another buyer who is attempting to sue the Icon in court, but that case has not been heard. I am sure that Icon’s attorney is attempting to get the case thrown out of court and compel binding arbitration (that’s what I would do), but I have absolute no evidence of this. From what I understand, this case has a chance of being heard this month.
That being said, I want to reiterate my previous statement. Suing the Icon is not the best approach in my opinion. In my experience the Icon developers are very reasonable people who are willing to work with you to help make your condo purchase make sense for both sides. I encourage you to walk into the sales center and have a conversation with Hunter Conley, he is the project manager from the Village Real Estate side.
May 15, 2009, 3:00 am
I have heard that at least one buyer has gone to arbitration and was apparently successful in getting out of their contract. I have no way of really confirming this statement other than to say that it came from a very credible source in the industry. Keep in mind that there may have been extenuating circumstances that allowed for this successful action.There is also another buyer who is attempting to sue the Icon in court, but that case has not been heard. I am sure that Icon’s attorney is attempting to get the case thrown out of court and compel binding arbitration (that’s what I would do), but I have absolute no evidence of this. From what I understand, this case has a chance of being heard this month.That being said, I want to reiterate my previous statement. Suing the Icon is not the best approach in my opinion. In my experience the Icon developers are very reasonable people who are willing to work with you to help make your condo purchase make sense for both sides. I encourage you to walk into the sales center and have a conversation with Hunter Conley, he is the project manager from the Village Real Estate side.