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]

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]

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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