In short: In Prat v. Miami River, LLC (2013) the Third District affirmed, without opinion, a Miami-Dade judgment for the condo developer. The buyers, who had defaulted, switched to a cheaper unit by amendment and defaulted again, argued the federal Interstate Land Sales Act entitled them to deposits above 15%. They lost.
The Facts
This dispute grew out of the Miami pre-construction condo boom. According to the oral argument, the buyers signed a contract in 2005 with the developer, Miami River, LLC. When they could not close, the parties signed an amendment that moved them to a cheaper unit while keeping the original contract in force. The buyers defaulted again.
The buyers then sued to recover the part of their deposit above 15% of the price, relying on the federal Interstate Land Sales Full Disclosure Act (ILSA). As described in the argument, they claimed the amendment was really a new contract, that ILSA’s anti-waiver rule protected them, and that release language did not bar the claim. The developer argued the amendment revived the original contract, that an ILSA exemption applied (including one tied to completing construction within a set period), and that the buyers released their claims.
Because the court issued no opinion, these facts come from the arguments, not from a written ruling.
The Decision
On March 13, 2013, the Third District affirmed in a one-word per curiam decision. The judgment for the developer stood, and the buyers did not recover the deposit above 15%. The court did not say whether it rested on the revival theory, an exemption, the release, or something else.
The Law
ILSA, 15 U.S.C. 1701 and following, was a common weapon for buyers trying to escape boom-era condo contracts in Florida. Developers often relied on exemptions, such as the one for contracts obligating completion of the building within two years. In 2014 Congress amended ILSA (Public Law 113-167) to add a broad exemption for condominium units from the Act’s registration and disclosure requirements, which sharply limited these claims for later contracts.
Florida law separately protects condo deposits. Under section 718.202, developers must hold deposits in escrow, and deposits above 10% of the price may be used for construction only if the contract discloses it and the statute’s conditions are met. Default provisions in the contract usually control whether the developer keeps the deposit.
Current law (2026): ILSA (15 U.S.C. 1702) amended by Pub. L. 113-167 (Sept. 26, 2014, effective 180 days later) adding s. 1702(b)(9) condominium-unit exemption from registration/disclosure; anti-fraud provisions believed still apply – verify before publishing. Section 718.202 still governs developer escrow of deposits.
Lessons
- Amending a contract instead of terminating it may keep you bound by the original deal, including its default terms.
- Read release language in any amendment closely. It can waive claims you might otherwise bring.
- Federal ILSA claims against condo developers are much narrower today than they were in 2008-2012.
- Ask where your deposit is held and whether the developer can spend it on construction under section 718.202.
Source: Prat v. Miami River, LLC, No. 3D12-1117 — Fla. 3d DCA (March 13, 2013).
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Defaulted Twice on a Condo, Still Owed the Deposit? ILSA Fight | Prat v. Miami River, 3D12-1117
Go Deeper
- Florida Condo Owners' Rights: Special Assessments, Records, and Disputes With the Association
- How Appeals Work in Florida: The 30-Day Deadline, Costs, and What a PCA Means
Frequently Asked Questions
Can I get my condo deposit back under the Interstate Land Sales Act?
Rarely today. ILSA was once used to rescind pre-construction condo contracts, but exemptions always applied, and a 2014 amendment exempted condominium units from ILSA’s registration and disclosure rules. Your rights now depend mainly on the contract and on Florida’s condo statutes.
What happens to my deposit if I default on a Florida pre-construction condo contract?
Usually the contract lets the developer keep the deposit as liquidated damages. Florida’s section 718.202 governs how deposits must be escrowed and when the developer may use deposits above 10% for construction, but it does not by itself give a defaulting buyer a refund.
Does amending a condo purchase contract create a new contract?
It depends on the wording. An amendment that says the original contract remains in effect usually keeps you bound by the original terms. In Prat, the buyers argued their unit change created a new contract, but the appellate court affirmed for the developer without explaining why.
Is a release in a contract amendment enforceable in Florida?
Generally yes, if clear and supported by consideration. Federal laws like ILSA have anti-waiver rules, so a release may not bar every statutory claim, but courts often enforce releases signed in exchange for concessions like a cheaper unit or extended closing.
Talk to a Florida condominium and real estate lawyer
Weidner Law, P.A. handles Florida condominium and real estate disputes from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
