The Real Deal New York

Posts Tagged ‘interstate land sales full disclosure act’

  • Charles Schumer and Kirsten Gillibrand

    Charles Schumer and Kirsten Gillibrand

    A bill that exempts condos from filing and registration requirements mandated by the controversial Interstate Land Sales Full Disclosure Act (ILSA) has made its way to the United States Senate. Sen. Charles Schumer (D-NY), on behalf of himself, Sen. Kirsten Gillibrand (D-NY) and Sen. Dean Heller (R-NV), introduced the bill, known as S 2101, on March 10. [more]

    Comments
  • From left: Carolyn Maloney, Steve Spinola and Adam Leitman Bailey

    From left: Carolyn Maloney, Steven Spinola and Adam Leitman Bailey

    The U.S. House of Representatives handed condominium developers a significant victory Thursday, unanimously passing a bill that exempts condos from filing and registration requirements mandated by the Interstate Land Sales Full Disclosure Act, commonly referred to as ILSA. [more]

    Comments
  • arris-lofts-marina

    Arris Lofts and Marina Tencza

    A Manhattan federal judge has ruled that a couple who sued the developer of the Arris Lofts in Long Island City can get out of their contract to buy a penthouse apartment, despite already moving into the unit. The decision marks the first post-closing victory for a New York condo buyer in a case involving the Interstate Land Sales Full Disclosure Act. [more]

    Comments

  • 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]

    1 Comment
  • [Updated 1:15 p.m., April 15, 2011 from a previous version of the story] Trump Soho hotel-condo recently entered discussions with a number of brokers, including Prudential Douglas Elliman, on a potential deal to replace Prodigy International, according to sources familiar with the discussions.

    Developers and lenders have been in furious discussion about how to revive sales at the luxury tower, located at 246 Spring Street, following a 2010 deal with Los Angeles-based CIM Group to recapitalize more than $295 million in debt.

    When asked about this last week, Elliman declined to comment, while a spokesperson for Trump Soho denied the move. “There has been no change in the sales and marketing team,” the spokesperson said.
    [more]

    Comments
  • alternate text
    From left: Fifth on the Park and One Hunters Point

    In one of the nation’s most closely watched Interstate Land Sales Full Disclosure Act cases, a federal circuit court yesterday overturned a controversial lower court ruling involving two New York condominiums, forcing the release of millions of dollars in escrow funds and potentially ending the debate over whether the federal statute applies in New York City real estate.

    The U.S. District Court previously ruled that Harlem’s Fifth on the Park condo and One Hunters Point condo in Long Island City were exempt from ILSA laws because even though the condos were larger than the federally mandated 100-unit limit, the developers sold less than 100 units when they got the temporary certificate of occupancy from the New York City Department of Buildings. … [more]

    Comments
  • ILSA ruling a blow to 505 condo’s buyers

    December 10, 2010 02:05PM
    alternate text
    Buyers’ attorney Lawrence Weiner and the 505

    An Interstate Land Sales Full Disclosure Act case brought against the 505, a new 108-unit Hell’s Kitchen condominium, has been dismissed in U.S. District Court, the developer announced today, marking a defeat 35 buyers.

    Fifty-three buyers filed ILSA claims, starting in June 2009. Subsequently, 18 of those either settled with the builder Parkview Developers or closed on their units at 505 West 47th Street.

    But while a statement from Parkview said the developer intends to seek legal fees from the claimants, the buyers’ attorney Lawrence Weiner said that his clients intend to appeal. … [more]

    Comments
  • alternate text
    5th on the Park and Stephen Kliegerman

    Fifth on the Park, the Harlem condominium that saw a landmark Interstate Land Sales Full Disclosure Act case earlier this year, has switched up its marketing team after selling 51 percent of its 160 units since launching sales in April 2007. Halstead Property Development Marketing will become the exclusive sales team for the development, located at 1485 Fifth Avenue between 119th and 120th streets. Prices there range from $489,000 for a one-bedroom unit to $1.74 million for a four-bedroom apartment. Stephen Kliegerman, executive director for Halstead Property Development Marketing, was not immediately available for comment.

    Yoav Haron, CFO with Artimus Construction, a partner with the development team, Uptown Partners, said in a statement that the team has “been very pleased with the progress made up until this point.” … [more]

    2 Comments
  • alternate text
    From left: “Royal Pains” actress Anastasia Griffith, 80 Metropolitan and Fifth on the Park

    Three buyers, led by “Royal Pains” actress Anastasia Griffith, won the right to get their deposits back at 80 Metropolitan Avenue in Williamsburg.

    U.S. District Court Judge Andrew Peck ruled that developer Doug Steiner’s Steiner Studios failed to register the 123-unit condominium, and was not exempt from the Interstate Land Sales Full Disclosure Act despite selling less than 100 apartments at the property.

    “When plaintiffs… signed their purchase agreements, the condominium was publicly announced as consisting of 123 units,” Peck wrote. “Therefore the condominium was not exempt from ILSA registration and disclosure provisions under the 100-lot exemption unless 24 units were exempt at that time.” … [more]

    Comments

  • From left: Adam Leitman Bailey, the Edge and its developer, Jeffrey Levine of Douglaston Development


    At least nine apartment buyers, represented by attorney Adam Leitman Bailey, are now trying to back out of their contracts at the Edge, a 575-unit condominium at 22 North 6th Street on the Williamsburg waterfront. Bailey, who just won a similar case at the Brompton on the Upper East Side, is using the Interstate Land Sales Full Disclosure Act to fight for his clients, Curbed first reported. “Our client purchasers at the Edge are entitled to a full refund of their deposit and to rescission of their purchase agreements,” Bailey said in a statement. TRD[more]

    Comments
  • ILSA rulings could lead to more lawsuits

    October 20, 2010 06:00PM

    A series of recent rulings in New York and other states allowing buyers to recoup their deposits after backing out of signed contracts has enraged developers, the New York Times reported. The buyers are successfully using a 1968 federal law — known as Interstate Land Sales Full Disclosure Act –intended to protect buyers of out-of-state land from corrupt developers or brokers. But instead, attorneys for these buyers are finding fault in wording that technically violates the law in contracts or other documentation. Lawyers have won back deposits for errors as simple as failing to give buyers a legal description of the property. Experts say that these decisions could lead to more buyer lawsuits. “The crash of the market resulted in people losing their jobs, No. 1, and No. 2, the tightening of the credit market meant they couldn’t get the loans they needed to buy the property,” said attorney Adam Leitman Bailey, who has represented buyers in several cases involving ILSA. “We had to find some law to help these people, and that’s what ILSA did. Desperation inspired creativity.” A handful of recent ILSA cases saw judges finding in favor of buyers. Earlier this month, at 20 Pine Street in Lower Manhattan, a judge denied an attempt by the sponsors to have two cases brought forward by buyers thrown out. In September, a judge ruled against Related Companies in an ILSA case, order the developer to return a $510,000 deposit on a unit at the Brompton on the Upper East Side. [NYT]

    [more]

    Comments
  • 20 Pine Street

    A federal district court judge denied an attempt by the sponsors of the 20 Pine Street condominium to throw out two … [more]

    Comments
  • The Related Companies must return a $510,000 deposit, plus interest, to the Greek shipping executive who bought at the 22-story Brompton condominium on the Upper East Side, a federal judge ruled yesterday in a decision that could have broad implications for developers and condo buyers in New York and nationwide.

    The Brompton buyers, Vasilis Bacolitsas and his wife, Sofia Nikolaidou, had signed a contract in May 2008 for a $3.4 million three-bedroom unit and later decided to back out, making use of a 1968 federal law called the Interstate Land Sales Full Disclosure Act. The obscure law, originally intended to be applied to the sales of large plots of undeveloped land, requires contracts in large developments to be in a form that can be filed with the city register.

    At the Brompton and most other new condominiums, lenders stipulate that buyers are only allowed to register their contracts after they’ve closed on the purchase because a recorded agreement would result in a lien against the property. The decision, therefore, said the buyers’ attorney, Adam Leitman Bailey, entitles “every buyer in a newly constructed condominium which has sold more than 100 units within the last three years to obtain a refund of their down payment.”

    Lawyers for the sponsors said the decision could be a death sentence for existing and future new development in the city and intend to appeal. [NYT]

    [more]

    Comments
  • More than half of the owners at Arris Lofts — a 237-unit condominium conversion in Long Island City located in the former Eagle Electric building — are suing developer Andalex Group for $20 million, seeking damages for alleged negligence, including misappropriated funds and breaches of warranty, Crain’s reported. The attorney representing the 120 apartment owners involved in the lawsuit, Steven Sladkus of Wolf Haldenstein Adler Freeman & Herz, said he is finalizing a formal complaint outlining all the allegations. While the developers no longer own apartments in the building, they maintain control of the condo board. In their suit, the owners claim that the developers were inappropriately using funds to pay for things like construction material, and that they “exhibited a total lack of interest in calling board meetings and doing what is necessary on behalf of unit owners,” Sladkus said. Calls by Crain’s to Andalex Group and their attorney, James Hausman of Meister Seelig & Fein, were not returned. Meanwhile, a couple who lives in a $3 million penthouse at Arris Lofts and invoked the Interstate Land Sales Full Disclosure Act are seeking to quash an apartment contract. That case is pending. (note: correction appended) [Crain's]

    [more]

    Comments
  • ILSA revived by Virginia ruling?

    May 11, 2010 12:00PM

    A ruling in favor of two homebuyers reneging on their contract in Northern Virginia may have revived hope for contract holders in New York City, according to the Wall Street Journal and as The Real Deal first reported. While many New York City homebuyers have tried to use the Interstate Land Sales Full Disclosure Act — a decades-old law known as “ILSA” — to back out of contracts that went sour in the market downturn, few have found success. But the Virginia ruling, which allowed a couple to ditch a $2 million
    contract when their developer pulled out, could set a precedent for
    contract-holders in other states, according to industry insiders. … [more]

    Comments
  • alternate textPrudential Douglas Elliman broker Hela Miodownik and the Andaz at 75 Wall Street

    A state Supreme Court judge has dismissed a lawsuit by a Prudential Douglas Elliman agent who sued to back out of her contract at the Andaz at 75 Wall Street, claiming her agreement was a sham deal that was designed to promote sales to foreign buyers. Elliman broker Hela Miodownik filed suit in August 2009 alleging that
    the developers, led by the Hakimian Organization, did not allow her to
    close on apartment 21D after all the remaining units in the building
    were sold, as she had planned.

    She also claimed that the developer improperly used a broker from Corcoran Sunshine Marketing Group instead of a lawyer to negotiate the condominium unit contract. … [more]

    Comments
  • Fifth on the Park slashes prices

    April 12, 2010 05:09PM

    Uptown Partners’ 5th on the Park in Harlem has slashed prices by as much as 15 percent. The asking price for unit 26A, for example, was $1.9 million last month from $2.25 million previously. There are 70 units out of 160 still available at the project at 1485 Fifth Avenue on the corner of 120th Street. Uptown Partners made news in January when it scored a victory against two buyers who wanted to get their deposits back at the project. It was the first time in 20 years in New York that a federal judge ruled on a case in which buyers tried to use the Interstate Land Sales Full Disclosure Act, or ILSA, to cancel contracts and get deposits back. Griffin Real Estate Group is handling marketing and sales for the project.

    Comments
  • Condominium buyers at a luxury Harlem project filed court papers yesterday to begin an appeal of a recent decision that was the first ruling on the Interstate Land Sales Full Disclosure Act, or ILSA, in New York state in the last two decades. Buyers of two condo units at Uptown Partners’ 5th on the Park, the 160-unit condo development at 1485 Fifth Avenue at 120th Street, filed a notice of appeal in Manhattan federal court yesterday, the filing shows. They sought to overturn a decision issued Jan. 30 by federal judge Denise Cote who ruled that the developers of the project were exempt from the ILSA statute, thereby rejecting buyers’ efforts to break their contracts and get their deposits back. The federal ILSA law requires that developers who have divided land into 100 or more units, file a property report with the U.S. Department of Housing and Urban Development. Buyers must also be given a report before signing their contract. The little-known law has been used in dozens of cases in New York City where buyers are trying to back out of their contracts. … [more]

    Comments
  • HUD probes Extell over Rushmore complaints

    February 04, 2010 05:42PM

    From left: Attorney General Andrew Cuomo, Secretary of Housing and Urban Development Shaun Donovan and the Rushmore

    The U.S. Department of Housing and Urban Development has launched an investigation into the Rushmore condominium, amid allegations that the lawyers for the developer, Extell Development, held previously undisclosed meetings with state Attorney General Andrew Cuomo’s office to prevent existing buyers from backing out of their apartment contracts.

    HUD officials said that as of May 11, 2009, Extell “voluntarily suspended” the building’s registration under the Interstate Land Sales Full Disclosure Act (ILSA), a federal law that protects consumers in newly constructed condos with more than 99 units. The move would allegedly be a way for the developer to shield itself from ILSA-related claims.

    HUD opened the probe after media reports mentioned that 34 buyers filed complaints with the AG’s office. While officials did not disclose why Extell would suspend, documents obtained by The Real Deal show the Rushmore developer was facing an ILSA-based lawsuit prior to the filing. … [more]

    Comments
MENU