The Las Vegas Review Journal reports on the fall-out from failed condo projects. "Broker Beverly Lacey will show high-rise luxury condos to clients if that's what they want to see, but she feels obligated to warn them of the challenges and pitfalls exposed by Las Vegas projects that have fallen by the wayside. Lacey said she was heavy into sales at Krystal Sands and Aqua Blue last year when developers canceled the projects. It cost her about $200,000 in commissions."

"'You've got to roll with the punches. Yeah, I ate it for a couple hundred thousand in commissions, but you have to move forward,' she said."

"Lacey is among a handful of brokers who worked long hours catering to clients and building relationships with developers only to be left hanging over defunct projects such as Krystal Sands, Aqua Blue, Hard Rock Hotel, Ivana Las Vegas, and Icon."

"Several lawsuits alleging breach of purchase contract have been filed on behalf of buyers as a result of the Las Vegas high-rise fallout. Most brokers will never see payment. High-rise failures in Las Vegas reverberated to Wall Street, where financial institutions have become more leery about making construction loans. The failures have also put a crimp in brokers' bank accounts."

"Broker Bruce Hiatt said he only sells condos that pay advance commissions early in the process; commissions are nonrecourse, meaning they don't have to be paid back if the project fails. 'Very few can play in that game,' Hiatt said. 'This way we..earn at least part of the commission if the project doesn't go forward. It's time the high-rise developers realize the game rules have changed and luxury high-rise brokers are onto the game of the land flippers.'"

"Hiatt said he felt misled by developers who used his time and services to pump up the value of their land to flip it. Such situations caused agents to 'lose face' with their buyers, many of whom became disenchanted with Las Vegas after their negative experiences."

"A number of top-producing brokers got stung when Related Las Vegas canceled Icon in January, said Paul Murad, developer of the proposed Gateway Las Vegas high-rise in downtown Las Vegas. Some of the brokers had purchased units and were anticipating appreciation gains. Others had clients who bought at Icon and they were counting on commissions and making purchases based on future earnings, Murad said."

"'Realtors were confident that their payday would arrive because companies like Related seldom cancel publicly announced projects,' he said."