Real Estate Developer Non-Compliance Case
- Posted on: May 26 2016
A CLIENT’S DILEMMA: DEVELOPER NOT COMPLYING WITH THE TERMS OF A REAL ESTATE CONTRACT
Our client was facing a common problem among purchasers- purchaser entered into a contract of sale and the sponsor/developer was not complying with the terms of the contract. In this particular case, the purchaser entered into a contract of sale that provided the purchaser with the right to rescind a contract of sale if the sponsor/developer did not close on the first apartment in the condominium by a designated closing date. The developer did not close on the designated closing date but failed to give the purchaser the right to rescind the contract as the sponsor/developer falsely claimed that the designated closing date was a typographical error and the date should have been one calendar year later then written in the contract.
Client came to Held & Hines LLP and asked for help in both getting their down-payment monies back and holding the sponsor accountable for wrongfully holding the client’s money.
Held & Hines LLP worked alongside their client to put a plan together to get the client’s down-payment monies returned to the client and holding the sponsor/developer accountable by making them pay a penalty of 9% interest from the date of breach.
Held & Hines LLP chose to commence a lawsuit in State Court instead of applying to the New York Attorney General’s Office, so as to provide greater available remedies to the purchaser including 9% interest interest on the down-payment monies. The case, often referred to as the “$100 milion typo case”, went to the Court of Appeals and resulted in my client’s goals being achieved – the return of the down-payment and interest payments on the down-payment totaling approximately a half-million dollars.
To see the case, click on the link below.