From left: 505 West 47th Street and Ian Reisner and Mati Weiderpass,
co-founders of Parkview Developers

A federal district judge late last week ruled that 35 buyers at the 505 Condominium in Hell’s Kitchen should get their escrow deposits refunded, overturning an earlier verdict for Parkview Developers in this closely watched case involving the Interstate Land Sales Disclosure Act.

In June 2009, 53 buyers filed suit in U.S. District Court alleging that Parkview, led by Ian Reisner and Mati Weiderpass, failed to provide the buyers with property reports at the building, at 505 West 47th Street. Eighteen of the buyers settled with the developers or closed on their purchases before a federal district judge dismissed the case in December 2010.

On Sept. 28, Judge Lawrence McKenna reversed the 35 buyers ruling, citing a reversal earlier this year in the case by Lola Bodansky against the Fifth on the Park condominium. [more]

Lev Parkview investor Mati Weiderpass and the 505 Condominium at 505 West 47th Street

Just weeks before closings began at the 505 Condominium in Hell’s Kitchen, Lev Parkview Developers sent letters to dozens of buyers at the building, threatening to forfeit their deposits if they failed to close on their contracts and move forward with a federal lawsuit, according to documents obtained by The Real Deal. The 108-unit condo, located at 505 West 47th Street, is facing litigation from dozens of buyers who want to get their deposits back, amid a lawsuit alleging that Lev Parkview failed to provide property reports to buyers and submit a so-called statement of record with the federal department of Housing and Urban Development. The financial statement is required under the Interstate Land Sales Full Disclosure Act, a federal statute originally used to protect buyers from scam swampland purchases in Florida. The act has been used in a number of condo suits in New York and other states, and applies to buildings with 100 units or more.  More

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Mortgages remain elusive for house hunters in New York and as a result,
many buyers are working with more than one lender. Developers are also
lining up additional lenders to help buyers obtain financing. The developments come in response to the tough credit environment.
Banks have tightened the availability of home loans to buyers and at
the same time, many are reluctant to write mortgages for some new
buildings where only a small percentage of apartments have been sold. As attorneys for buyers are putting mortgage contingency clauses in
contracts, attorneys for sellers are directing buyers to apply for
financing at more than one bank or go to a mortgage broker, said Daniel
Berman, an executive vice president with Bellmarc Realty, who has seen
the scenario play out in a few recent deals.
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