Somone else recently posted this on wired and I was curious to hear if anyone here has any throughts. ---------- In reading an article in this month's edition of The Real Deal, http://ny.therealdeal.com/articles/n...for-developers, I came across two sentences that piqued my interest. Has anyone had any experience with, or can anyone point me to the specific sections of New York law that deal with,... [more]
Somone else recently posted this on wired and I was curious to hear if anyone here has any throughts.
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In reading an article in this month's edition of The Real Deal, http://ny.therealdeal.com/articles/n...for-developers, I came across two sentences that piqued my interest. Has anyone had any experience with, or can anyone point me to the specific sections of New York law that deal with, the following two ideas:
1) Under state regulations, a buyer can break a contract with security deposit in hand if a year has passed since his contract signing and the building doesn't yet have at least a temporary certificate of occupancy, which is required before anybody can move in.
2) midway through the construction process the developer submits a revised offering plan showing common charges rising by more than 25 percent, buyers can break their contracts, he said.
Any experience/guidance/advice would be most appreciated.
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Response by dco
over 17 years ago
Posts: 1319
Member since: Mar 2008
great question.
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Response by NYbylr
over 17 years ago
Posts: 37
Member since: Jan 2008
Regarding point (1), maybe thats how the developer for Tribeca Space allowed people to backout of their contracts with no penalty.
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Response by buddyparker
over 17 years ago
Posts: 67
Member since: Feb 2008
We just bought in new construction and the deal is if the first closing takes place 1 year or more after it was scheduled to take place we have a 15 day window to back out. Also it is in the contract that if the common charges rise more than 25 percent we can also back out.
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Response by greeny
over 17 years ago
Posts: 19
Member since: Feb 2008
buddy - did it say the part about the 1 yr or more in your offering plan? If so where?
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Response by 415Buyer
over 17 years ago
Posts: 10
Member since: Apr 2006
It's apparently not contractual, it's an A.G.'s regulation. There's a long discussion of it in the Tribeca Summit thread in this forum. Check it out.
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Response by buddyparker
over 17 years ago
Posts: 67
Member since: Feb 2008
Yes greeny it does. It says it in the "rights and obligations of sponsor" section.
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Response by malraux
over 17 years ago
Posts: 809
Member since: Dec 2007
This is boilerplate.
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Response by greeny
over 17 years ago
Posts: 19
Member since: Feb 2008
415: thanks for pointing out the discussion on the other thread to me. Do you know if the regulation is applicable when no TCO has been issued 1 year from signing (as the real deal article stated) or needs to have had the first closing within 12 months of the original budget in the offering plan (as you stated)?
I'll have to go back to my offering plan to look at the dates for the original budget. But I remember seeing a "substantially completed" date. Does anyone know the significance of that? Is that when they expected to have their TCO? I just got an amendment moving this date out 9 months from the original putting it at 2 weeks from now which is absolutely impossible given the current state of the building. Are they just required to submit an update with the AG?
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Response by Doogie
over 17 years ago
Posts: 8
Member since: Jul 2007
the link above is not working--can you repost the link please
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great question.
Regarding point (1), maybe thats how the developer for Tribeca Space allowed people to backout of their contracts with no penalty.
We just bought in new construction and the deal is if the first closing takes place 1 year or more after it was scheduled to take place we have a 15 day window to back out. Also it is in the contract that if the common charges rise more than 25 percent we can also back out.
buddy - did it say the part about the 1 yr or more in your offering plan? If so where?
It's apparently not contractual, it's an A.G.'s regulation. There's a long discussion of it in the Tribeca Summit thread in this forum. Check it out.
Yes greeny it does. It says it in the "rights and obligations of sponsor" section.
This is boilerplate.
415: thanks for pointing out the discussion on the other thread to me. Do you know if the regulation is applicable when no TCO has been issued 1 year from signing (as the real deal article stated) or needs to have had the first closing within 12 months of the original budget in the offering plan (as you stated)?
I'll have to go back to my offering plan to look at the dates for the original budget. But I remember seeing a "substantially completed" date. Does anyone know the significance of that? Is that when they expected to have their TCO? I just got an amendment moving this date out 9 months from the original putting it at 2 weeks from now which is absolutely impossible given the current state of the building. Are they just required to submit an update with the AG?
the link above is not working--can you repost the link please
http://ny.therealdeal.com/articles/now-being-late-is-disastrous-for-developers