Sale at 185 York Street #3A

The sponsor of 185 York is intentionally delaying a condo unit closing in Vinegar Hill, Brooklyn. Purchasers of a residential condominium unit may obtain damages for an alleged intentional delay in completing their unit. Most sponsors, of course, want to close quickly but the purchasers of 185 York allege that the seller did not have a construction loan to pay down and was unhappy with the price... [more]

The sponsor of 185 York is intentionally delaying a condo unit closing in Vinegar Hill, Brooklyn. Purchasers of a residential condominium unit may obtain damages for an alleged intentional delay in completing their unit. Most sponsors, of course, want to close quickly but the purchasers of 185 York allege that the seller did not have a construction loan to pay down and was unhappy with the price set forth in the original purchase agreement. After much back and forth, the seller has still not closed after two and a half years. The sponsor of 185 York is intentionally delaying completion of a project to try to force the buyers to exercise their right to terminate the now below-market contract. The buyers signed the contract in July of 2012 when the units were virtually complete. The sales agents advised that the unit was "finished" and that a temporary certificate of occupancy was "imminent" permitting a closing "very soon," perhaps as early as July of 2012. However, evidence showed that work had slowed. The sponsor quickly advised that construction was a "few weeks behind" and predicting a mid February 2013 closing. With no closing by April of 2013, the purchasers started writing complaint letters. The TCO has not been issued by October 2014 and the sale has not been closed. But in the meantime the purchaser's interest rate on their financing had increased causing plaintiff to consider suing for damages including those arising due to the higher rate and for interim living costs. During this period the sponsor has offered to let the purchaser rescind his contract. The offering plan for the building estimated a closing on or about July 20, 2012 but various disclosures in the plan warned of the possibility of delay, although the plan required the sponsor to proceed "diligently and expeditiously to complete construction." We assume that the allegations that the sponsor intentionally delayed the closing are true. Since there was an intentional delay in work at the condo to obtain a permanent certificate of occupancy, the buyers can claim for additional living costs for the past two or more years. Its obvious that the seller of 185 York has committed an intentional breach of contract by failing to diligently pursue completion and closing of the units, although damages may be limited. [less]