City's Biggest Condo Project Caught in Major Lawsuit - News

Las Vegas - You've been hearing for months about the hottest trend in the local housing market: The condo craze. Dozens of new towers climbing into the sky, the developers selling units before they even break ground.But that might get tougher now that many of those buyers are finding their dreams have become a nightmare. They say they were scammed with the promise of buying early for less, and earning equity even before they moved in. Now one of the city's biggest condo projects is caught in a major lawsuit.

"The base price is 489-thousand."

"What did you agree to?"

"250-thousand."

With original offers in the 200 and 300 thousand dollar range, the price is going up faster than the building. Good news if you got in on the ground floor, or is it?

"Imagine my disgust when I get a similar package in the mail that says, it's not a half a million dollars any more, it is 874-thousand."

Bruce, Kevin and Dona all bought into the condo craze more than a year ago. They all attended a Vegas Grand sales event, put down anywhere from 5-thousand to 25-thousand dollars, and signed letters of intent to buy a unit in a building here at the corner of Flamingo and Swenson.

"I would periodically visit the sales office where they would gleefully say, look at what the base price of your unit is now, it's six hundred and ten, aren't you glad you got in when you got in?"

That all screeched to a halt when they got a notice in the mail telling them they had two options - pay a revised price almost double the amount they agreed to or get their deposit back with 5-percent interest.

"Personally, my feeling is, they have dollar signs in their eyes and they know that if they can get rid of me they're going to make a whole lot more money off my unit."

The buyers we talked with weren't the only ones to get the letter. A class action lawsuit has been filed -- saying the contract that was signed does meet the state's requirements for a purchase agreement, an agreement Bruce says he wants the Vegas Grand to honor.

"As far as I'm concerned, I have a reservation that says a price in it and that's what I expect to pay for the unit."

We talked to a representative for the developers of the Vegas Grand; they say because of the legal filing, they can't comment on the case. A class action lawsuit that represents the people we spoke to was announced on Friday, that suit will represent an additional 22-condo buyers.