From left: Related CEO Stephen Ross, Greek shipping executive Vasilis Bacolitsas and the Brompton

Lawyers for Related Cos., the developer of the Upper East Side’s Brompton condominium , asked the U.S. Circuit Court yesterday to overturn a lower court ruling under the Interstate Land Sales Full Disclosure Act that critics charge would stifle new condo development by forcing sponsors to record sales contracts with city agencies even before a building is constructed.

In September 2010, Related, led by billionaire Stephen Ross, lost a closely watched ILSA case from Greek shipping executive Vasilis Bacolitsas and his wife, Sofia Nicolaudou, one of several buyers that filed suit in 2009 to get their escrow deposits returned at the building, at 205 East 85th Street, after the real estate market crashed. [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]

With the real estate sector beginning to show signs of improvement, some say developers are more willing to negotiate to keep buyers from demanding their deposits back. When buyers at large developments like the Brompton and the Time Warner Center began citing a provision of the Interstate Land Sales Full Disclosure Act in order to try to back out of their contracts, developers privately began making deals on the pricey condos. While the Related Companies denies allegations that any such deals have taken place at its 22-story Brompton, reports have said the hushed negotiations usually end once they are revealed. Joanna Rose, a spokesperson for Related, said two-thirds of the 193 apartments in the building have closed, “all at original contract price with no concessions.” [NYT]