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Real estate deal won't go through!

New York, NY |

We signed a contract for a condominium 2 years ago. The entire building was sold out around the same time, but the developer has not managed to get a CofO for 2 years now. He has been giving one excuse after another for two years, and now is getting hard to reach. If we get aggressive, he offers to refund our escrow money, but we just want to buy the condo, as do all the others. Do we have any recourse except to take back our money and start over???

Attorney Answers 4


Dear New York Condo Buyer:

I take it the Sponsor has not closed on any purchase contracts. In New York State, all the terms relating to the offering of units in a condominium are stated in an offering plan. The plan details the procedure to purchase and the obligation of the Sponsor to close on each properly submitted purchase. Since you are not alone with this problem, it is likely the New York State Attorney General, Real Estate Finance Bureau may help you as well as other waiting purchasers.

If this development is going down you would want to cash out before the developer goes into bankruptcy.

The answer provided to you is in the nature of general information. The general proposition being that you should try to avoid a bad outcome if you can.

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Maybe. It depends on how much and what type of damages you sustained as a result
of this situation.

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Possibly. The answer will depend on what your contract says about it and what damages if any you have incurred as a result. Unfortunately, most contracts would provide that your only recourse would be to cancel the contract and receive your down payment back. I presume you were represented when you signed the contract. I suggest you speak with the attorney who represented you at the time. If you were not represented then contact an attorney to have your contract reviewed.

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It all depends on the terms in the contract. You may have a right to compel the developer to close title. The lawsuit is based in "specific performance", whereby the law deems each
Are lie of real estate to be unique. Therefore, the only way to make you "whole" is to,have the court compel the conveyance.

The responses provided to your questions are not legal advice, do not create any attorney client relationship, and are provided for informational purposes only.

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