Cay Clubs Clients
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Cay Clubs International –
Belt Law Firm, P.C. currently
represents over 200 unit owners who
purchased condominiums in Las Vegas,
Nevada and Orlando, Florida from Cay
Clubs International. Cay Clubs
International owned and/or operated
a number of large, luxury
condominium complexes in the U.S.,
including resorts in Las Vegas,
Nevada, Orlando Florida, Clearwater,
Florida, and the Florida Keys. The
Cay Clubs business plan was to
purchase an apartment complex or
motel and convert it into a “5-Star”
property, which included the
addition of amenities around the
complex such as restaurants and
shopping malls designed to increase
the value of the condos.
To induce purchasers to buy at a
pre-renovation state, Cay Clubs and
its partners would offer a 15%
“leaseback.” The leaseback is
essentially a rebate by which the
purchaser is promised that he/she
will receive 15% of the purchase
price back within 45 days of
closing. This gives purchasers the
ability to make the mortgage
payments for the two-year period in
which the renovations are to be
completed. However, a large number
of the Purchasers did not receive
their promised leaseback monies, or
only received a portion. The
purchase money was taken in by Cay
Clubs and/or its development
partners, and used to fund other
things, as opposed to being set
aside or placed in an escrow account
for repayment back to the purchaser.
In addition to the “leaseback”
offer, purchasers were also induced
to purchase at a pre-renovation
state by the promise that they were
buying at “wholesale” prices and
would experience immediate equity of
20% or more. Prospective purchasers
were also shown “sample appraisals”
that were represented to be actual
appraisals of true arms-length
transactions. These appraisals were
used to justify the purchase price,
which was typically 40% or more
above the actual market value of the
unit.
Despite the fact that it began to
experience serious cash-flow
problems in mid-2006, Cay Clubs and
its partners continued to market and
sell units well into late 2007. In
October 2007, after selling hundreds
of millions of dollars in units, Cay
Clubs abandoned the properties
without completing the promised
renovations. This has left
purchasers in an extremely
vulnerable position. They are left
with what are essentially worthless,
low-end apartment or hotel units
that are worth one-half or less of
the purchase price. Because of the
failure of Cay Clubs to pay the
promised leaseback funds, many unit
owners face imminent foreclosure.
If you purchased a condominium from
Cay Clubs and would be willing to
discuss your experience with us,
please call us toll free at
1-888-933-1514 or email us at
info@condo-fraud-litigation.com.
We are also investigating various
other condominium projects in
Florida. If you feel you were the
victim of an unscrupulous developer,
or have experienced other problems
with the developer, feel free to
contact us to discuss your legal
rights.
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