Buyers are trying to take developers to court arguing that security laws were violated. The article states that they have turned out to be based investments. Come on now, what property with the word condo hasn’t turned out to be a bad investment in the past few years. When prices were going up no one was complaining and developers couldn’t go back to buyers for more money. It’s a two way street people.
“Now, some buyers are arguing in court that purchasing a unit in a condo-hotel is similar to buying a stock, where the buyer is entirely reliant on the operational skills of management for any return. Therefore, they contend, the purchases should have been regulated by the Securities and Exchange Commission, which would force companies to issue a detailed prospectus and have agents licensed to sell both real estate and securities, a rare combination.”