Ouch...more about bad developers

See the post below this one.
Once again, before you get into any kind preconstruction deal, be sure to thoroughly check out the developers and how many successful projects they have done before. I know many people who were overjoyed 6 months ago at the money they were going to make on this project. Now it seems like that won't be the case....

Lawsuits ensnare condos in NMB

Buyers say greed led to cancellation of deals
By David Wren
The Sun News

NORTH MYRTLE BEACH - A condominium project billed in 2004 as one of South Carolina's biggest and most luxurious is still an empty lot two years later because of a tangle of lawsuits that threaten to stall construction for years to come.

In the latest lawsuit, filed in November, buyers of condo units at H's Resort and Beach Club accuse developer Harvey Graham Jr., doing business as LOG Properties and BCG Properties, of fraud because he canceled their purchase contracts and then offered to sell them the same units for a higher price.

"It's nothing but greed," said Gene Connell, a lawyer representing the buyers.
Henrietta Golding, Graham's lawyer, said the higher prices are necessary because of rising construction costs.

"There is absolutely no dispute over the huge increase in construction costs," Golding said. "Any contractor will tell you that concrete and steel have gone sky high."

A hearing on the matter is set for today at the Horry County Courthouse in Conway.
The 18-story, 397-unit H's Resort was supposed to open this spring, but construction never started, in part because of two other lawsuits filed in the past two years that have not been settled.

Plans for H's Resort, located at the corner of Ocean Boulevard and Second Avenue North, show two pools, a lazy river, hot tubs, a fitness center, a restaurant and a beach music-themed nightclub.

Although the condo tower will be on the second row, its design features ocean views from the living room and bedroom of almost every unit.

Prices originally ranged from about $260,000 to $305,000, according to court papers and buyers who signed contracts in 2004. Now, Graham's company wants as much as 51 percent more for each unit, court records show.

If the original buyers don't want to pay the extra money, H's Resort has "a long list of potential buyers hoping for a chance to buy a unit," according to a letter sent in November to the resort's original buyers.

It was that letter, from H's Resort broker-in-charge William Olive, that prompted about 40 buyers to join the November class action lawsuit that accuses Graham of fraud and breach of contract.
MORE......