Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

Luxury condominiums buyers at Cosmopolitan who failed to buy the purchase contact and speculated on Cosmopolitan lost and are now suing

Deutsche Bank announced that Cosmopolitan Luxury Condos will open and take reservation for its Dec. 15 opening, however about a third of the condominiums will not be ready until the summer of 2011. The Cosmopolitan was purchased by the Deutsche Bank for one billion dollars in a foreclosure auction and the current estimates for the final cost are $3.9 billion. Cosmopolitan has 2,995 rooms, a 150,000 square feet shopping center and a spa and nightclub.

I did a blog post about what happens to Las Vegas high rise condo buyers when they are not represented by a Realtor? Buyer’s remorse at Cosmopolitan Las Vegas. These buyers had to put up 20% down payments on their expensive condominiums in 2005.

 The following is from a Las Vegas RJ article:

 ”Many of the 220 unit purchasers of the condominiums claim to have been held hostage for five years while hundreds of thousands of dollars in deposits have been held by Deutsche Bank,” said their attorney. He also said “plaintiffs have received letters from Deutsche bank demanding that they commit to close escrow on their units in an attempt to bully plaintiffs into accepting partial refunds of their deposits, even though Deutsche Bank has failed to disclose even the most basic information about the nature of its condominium program.”

Check this out, these 220 buyers didn’t even know “the most basic information about the nature of its condominium program” and they signed the purchase contract that spells out all obligations by the builder. The purchase contract for Cosmopolitan has been done by teams of real estate attorneys to protect the builder’s interest.  I would wager anything that none of these 220 buyers read the contract before they signed it.  A competent Las Vegas Realtor would have advised them about the pitfalls on the contract. Better Realtors, like me, would have advised against buying at Cosmopolitan until the percentage of sold inventory and recorded prices for condos that have closed escrow would become available, just as I have repeatedly written about in our Las Vegas high rise condo pages and other blog posts.

 “Cosmopolitan spokeswoman Amy Rossetti said in a statement that the resort believes the lawsuit to be without merit.” I wonder if prices at Cosmopolitan had appreciated by 20% would these buyers have filed a lawsuit. They speculated without reading the purchase agreement and lost.

On my visit to Veer Towers, I was accompanied by three buyers who were going to buy using the Veer Towers agent who works for the builder, MGM Grand, and without a Las Vegas Realtor accompanying them.  I didn’t say a word either. If one thinks that he is smart enough and has all the relevant info to go straight to the projects sales staff, then all they have to blame is themselves.

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