Woman sues LES co-op that revoked her bargain purchase

Linda Salamon of Roslyn, L.I., nabbed one of the recession’s sweeter real estate deals when she bought a $400,000 Lower East Side co-op at 413 Grand Street for $33,000 last May, the Daily News reported. Alas, the Seward Park Co-op board revoked her sale three months later, saying the sale, by auction, ignored the board’s right of first refusal.

Salamon is suing the co-op and Chase Home Finance, which put the apartment on the block after the current occupant defaulted on a $349,600 loan.

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Salamon’s lawyer Richard Klass, who runs his own firm, told the News that under state law, the co-op board cannot exercise its right of first refusal because the sale is not voluntary, it was forced by the lender.

Such dramatically low sale prices can hurt current co-op shareholders, as recent comparables are often used to determine asking prices. [NYDN]