EX-10.7 AMENDMENT TO RESTRICTED STOCK UNIT AGREEMENT

Exhibit 10.7

AMENDMENT TO THE RESTRICTED STOCK UNIT AGREEMENT

     This Amendment, dated as of July 26, 2007 (this “ Amendment ”), to the Restricted Stock Unit Agreement, dated July 22, 2004, between Avatar Holdings Inc., a Delaware corporation (the “ Company ”), and Charles McNairy (the “ Participant ”).

WITNESSETH:

     WHEREAS, the Company and the Participant entered into a Restricted Stock Unit Agreement, dated July 22, 2004 (the “ Agreement ”); and

     WHEREAS, on the date hereof the Participant informed the Company of his intention to terminate his employment with the Company on the close of business on August 3, 2007, for health reasons; and

     WHEREAS, the Company and the Participant desire to amend the Agreement as set forth in this Amendment to reflect the Participant’s long-term service and contribution to the Company.

     NOW, THEREFORE