A member of a European country’s royal family entered into a contract with the developer and sponsor of a new construction project in the Financial District in Lower Manhattan. For the high purchase price of $1.695 million of the condominium unit, the purchaser expected to be met at his walk-through nearly a year later with what was promised in the offering plan and plans and specifications. As the closing date approached and a walk-through and inspection were done on the premises, the purchaser was extremely disappointed in the condition of his unit, and felt that unless the condominium unit was completed to his satisfaction and expectations, he should be returned his deposit of $169,500 in full.
The purchaser immediately retained Adam Leitman Bailey, P.C. in the hopes of either forcing the sponsor to complete the unit as promised in the Offering Plan, or be returned his deposit in full. As the closing date quickly approached and further inspection was done on the premises, it became clear to the purchaser and to the attorneys at Adam Leitman Bailey, P.C. that the sponsor was not going to complete the unit to the satisfaction of the purchaser in time for the closing date. Within just a week of the scheduled closing date, there were still 77 items on the punch list that needed to be repaired in the unit. Most importantly, this list included the sponsor’s failure to install a large window in the premises, contrary to the Plans and Specifications, and instead there was a huge boarded-up hole in the wall where the window should have been. The list also included problems with the east side wall in the guest bedroom, which was not square and not plumb, and the strong sewage smell in the unit, indicative of a problem with the sewage system in the building, making the residence completely inhabitable. Adam Leitman Bailey, P.C. demanded that the sponsor provide habitable premises prior to the closing of the unit as legally obligated to do so, or return the deposit to their client.
For failing to close, the sponsor declared the purchaser in default and threatened to retain our clients’ down payment. Instead of forfeiting the deposit, Adam Leitman Bailey, P.C. negotiated to have all 77 items on the punch list rectified and remediated, and the purchaser got the apartment he was promised in the marketing materials. Adam Leitman Bailey, P.C. spent less than $5,000 in its representation of the purchaser in the matter.