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Thread: New construction - statutory right to rescind - a few Q's

  1. #1

    Default New construction - statutory right to rescind - a few Q's

    Hello all

    I have a few questions regarding my pending purchase of a new construction condo. This simple transaction is slowly turning into a fiasco of delays, missed DOB inspections, failed DOB inspections etc etc. and I am getting very frustrated to say the least.

    In a nut shell….the offering plan states that the condo was supposed to be ready for occupancy on June 1, 2006. It was subsequently amended to state the first year of operation begins June 1, 2007. I understand that the atty general regs state I can rescind the contract without penalty if the sponsor can’t close within 12 months of this date (which would be June 1, 2008). That day has come and gone.

    While I am still hoping to close soon if it takes much longer I may want to get out of the deal... After doing some research I still have a few questions and am wondering….

    1. Is this statutory right to rescind ongoing or does it elapse after a while? In other words because we are currently in the middle of August, was there a certain time period I had to exercise this right of rescission and is it now waived?

    2. Should I have received notification from the sponsor advising me of my right to rescind etc etc (I haven’t)

    So far I’ve called my atty, my friend’s attorney, and the atty general’s office and no one appears to know the answer to these questions.

    Does anyone have a clue????

    Many thanks.

  2. #2
    http://tinyurl.com/2ag28z Front_Porch's Avatar
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    Default

    I'm no attorney, but I think there's a definite window, and a small one, that you have to exercise your right of recission -- maybe 30 days? -- so I would find a lawyer who can give you that answer ASAP!

    ali r.
    {downtown broker}

  3. #3
    Disgruntled Optimist lofter1's Avatar
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    It seems that as the developer extends the time frame the window re-opens and a new opportunity to rescind arises.

    But I'm not a lawyer, either.

  4. #4

    Default Any updates? Were you successful?

    I am in a similar situation and was wondering if you were directed to a specific law that gave you the right to rescind from your contract. I was told that if there hasn't been at least one closing and if an amendment has not been filed to extend the budget, you do indeed have the right to rescind and to get your money back. I have not seen the actual law that states that and was hoping you were successful in finding this and getting out of your contract.

    Any feedback/advice is appreciated!

  5. #5

    Default it looks like i got out of my deal

    hi Jolie

    i met with an attorney well versed in this area...he reviewed the offering plan, amendments to the offering plan, and my purchase agreement.

    The bottom line is that if there isnt a closing within 12 months from when the plan, or any amendments filed, you have a statutory right to recind the deal.

    Based on what is going on these days with banks and the credit crunch I am sure a lot of buyers will be looking to break a contract and recover there deposit.

    Take a look at your docs...when was the first closing to occur?
    is there an automatic out in your purchase agreement?

    Take a look and contact me if you have any questions

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