The comments published to my Monday article about pending lawsuits are starting to sound reasonable. While I have hung in there with Red Frog management, the time has come to start talking specifics. And several concerns were raised after yesterday's conference call.
1) ROP LAND: It was a brief mention, but concerns some of us with Rights of Possession land. What I heard was, if titling doesn't happen by the time construction is completed on these lots, the owner will be forced to come up with the entire balance of the purchase price. THIS IS NOT ACCEPTABLE. We were promised from the start that the "sweeping" title would be in place before any building would be done on ROP land so that we could get financing. But it did not sound like that after yesterday's call. Not having title would also hurt resale value as well. Red Frog better figure out a way to finance this small portion of their property, otherwise they are going to lose those of us who have been supporting the project!!!
2) FINANCING: Did I hear right? They are going to qualify all buyers AFTER THE FACT? This is a lawsuit waiting to happen. They made these contracts in good faith that buyers would go through with the purchase. Now they are going to make everyone go back and qualify? And what happens... after 4 years... that circumstances change and people won't qualify now? Seems to me they should have done this BEFORE they went into any contract with buyers.
Don't get me wrong, I want this project to succeed, but I also want them to do what they promised us from the beginning. I'm sorry that the government is so slow at the titling process. But they should then give us the option to back out and get our money back, NOT offer us a fractional ownership.
If anyone is contemplating a lawsuit, please contact me by e-mail at mick@SFResidence.com. I am eager to see what people are thinking. Seems to me it might be a tactic to get out of the agreements since a lawsuit or lawsuits would only hurt the possibility of Red Frog getting more funding. It might be easier to pay everyone off who wants out and be done with it.
Mick @ Lot 83