Adam Leitman Bailey, P.C. Wins Landmark Victories Using Arcane Federal Law: Judge Rules Condo Deals Come Under Federal Law; a ‘Game Changer’ Decision
In late 2008, the real estate sky had started
to fall and fall quickly. As a result of the loss of financing and wages, many purchasers
in contract to buy a unit in a newly constructed building were either no longer able or willing to close on their units. To make
matters worse, the credit markets had been greatly curtailing the flow of money
into the hands of developers from purchasers. In March 2008, one of the last
outposts of lending, Fannie Mae and Freddie Mac, put the
brakes on loans to newly constructed buildings by requiring sales of at least
70 percent of a building's units in order for its buyers to obtain a loan.
Although this policy later changed to 50 percent and "sold" became "in
contract" for most lenders' purposes, the perfect real estate storm became a
hurricane when many developers no longer had the capital to deliver the
building as promised in the marketing materials. Engineers found serious
problems with many structures including in some cases the failure to build in
accordance with fire prevention protocols and materials. Hundreds of
purchasers turned to Adam Leitman Bailey, P.C. to find them some way to rescue them
from financial ruin. Turning to a forgotten federal statute called the
Interstate Land Sales Full Disclosure Act, he discovered a way to void the
contracts of sales for buildings over 100 units. Adam Leitman Bailey.
P.C. assisted almost a thousand purchasers in closing on these homes at
discounted prices or obtaining a refund of their deposits. The Wall Street Journal quoted a prominent New
York developer's attorney calling these holdings a "game changer"
affecting hundreds of newly constructed buildings nationwide.