In an effort to continue operations after over 100 purchasers initiated the process to get out of their contracts, the Shores of Panama has filed for protection under Chapter 11 Bankruptcy.
The Shores of Panama consists of 709 condos in a 22 story building on Front Beach Road. When they were marketing and selling this project, huge emphasis was placed on the expansive resort-style amenity area. Situated right across from Laketown Wharf, the Shores of Panama is a beach-front U-shaped building.
Florida statue requires that condo developers stipulate in their purchase and sale contract that the building must be completed and ready to close within 24 months of the buyer signing the contract. If the buyer is unable to close within that time due to default on the part of the developer, the developer must offer reasonable compensation to the buyer and or allow the buyer to be released from the agreement. Much of the Shores of Panama resort was not ready to close within 24 months, therefore giving many buyers an out on their contract.
Charles Breland, the developer, is currently in arbitrary talks with the prime contractor, CJ Jordan Residential LLP of El Paso, TX for allegedly failing to perform in the agreed time-frame. Breland has accused CJ Jordan for the one year delay in construction.
As reported by the News Herald 550 condos closed with the developer reserving around 150 for future sales.
All information as reported by the News Herald.