Condo Developers Dealt Another Blow

Condo Developers Dealt Another Blow

New York Supreme Court Justice Singh has ordered a condo developer to return $16 million to individual purchasers of condominium units in the case styled CRP/Extell Parcel I, L.P. v. Cuomo. The law firm who drafted the developers offering plan mistakenly drafted the documents with a rescission date of Sept. 1, 2008 instead of Sept. 1, 2009. Since the first closing did not occur on or before Sept. 1, 2008, the purchasers were entitled to cancel their contracts of sale and obtain a refund of their deposits. The law firm representing the developer argued that the incorrect date was a scrivener’s error that should be changed by the court to reflect the true intention of the parties. The Court held, as reported by the NYLJ, that there is no inconsistency whatsoever regarding the rescission date in the governing documents. The Court reasoned that the public needs to be able to rely upon the information in the offering plan regardless of errors made through no fault of their own. Therefore, the purchasers were entitled to cancel their contract and receive their deposits totaling $16 million.Photos taken by hotel murah

By | 2012-03-15T15:33:20+00:00 March 15th, 2012|