A recent Federal Court decision could allow hundreds of buyers of condo units to cancel their contract and receive the full return of their down payments. With the recent decline in real estate values, this is something many buyers may attempt to do, especially if this case is upheld on appeal. This article from the Wall Street Journal discusses the case at hand in which buyers of a condo changed their minds after entering into the contract. They then tried to renegotiate the price lower to no avail. Finally they got some smart lawyer who argued that the condominium contract used by the seller did not meet the requirements of the Interstate Land Sales Full Disclosure Act which Congress enacted in 1968 to protect land buyers. This law required that signatures of all parties to the contract be notarized so that they may be recorded in the county clerk’s office. By no means is it the practice of New York attorneys who represent sellers of condominium units to allow contracts to be notarized and recorded by the buyer. Stay tuned for future news on this case which I will report once the decision on appeal is decided. Read more
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