Hello, Lawsuits
A legal battle between a developer and investors has resulted in a nightmare scenario for some buyers at the Hello Living condo complex on the Crown Heights-Prospect Heights border, the Times reports. The project’s developer, Eli Karp, is being sued by investors who allege he stole money from the project and sold units without their…
A legal battle between a developer and investors has resulted in a nightmare scenario for some buyers at the Hello Living condo complex on the Crown Heights-Prospect Heights border, the Times reports. The project’s developer, Eli Karp, is being sued by investors who allege he stole money from the project and sold units without their permission. For his part, Karp says the investors want the properties to fall into foreclosure so they can turn around and buy them on the cheap. The lawsuits have doomed closings for a couple would-be buyers because banks have pulled out of their mortgage commitments. Other contract-holders, meanwhile, face the prospect of losing their savings: “‘For most of us, this is our first purchase, and it’s most of our life savings,’ said Jennifer DiFiglia, who has a contract with her husband on a $525,000 two-bedroom. Her deposit remains tied up in litigation, and if she cannot close, she could lose thousands of dollars in legal fees and tax penalties for withdrawing retirement money. ‘This isn’t a building filled with people working at hedge funds,’ she added.”
Families See a Utopia Turn Into an Ugly Legal Fight [NY Times] GMAP
Say Hello to More Hello Living [Brownstoner]
Checking In On Hello Living [Brownstoner]
Development Watch: Pacific Blue East [Brownstoner]
Dibs, evidence of a guilty conscience. For them to call the mortgage bankers of people in contract, and actually sue people who already bought alongside the developer is a clear abuse of the legal process. It’s plain harassment.
If you bought into a 50% sold building and have clear title, but the unsold units are in limbo @ court, good luck reselling/remortgaging.
Yes, slope, I’m sure titles were clear.
DIBS,
It is a condo and title passed at a closing to some of the buyers being sued. Bank would not have closed without clear title, whether or not buyers used lawyer recommended by developer. This one really seems beyond the pale. The investors’ beef, if they have one, is entirely within the development side of this. If the developer passed clear title without authority from the other investors, that is a dispute between them about what, if anything, he cost them.
Maly, yes, in NY, lawyers tend not to rat each other out for ethical violations, no matter how flagrant or harmful. It’s the one place where we still like to pretend this is a “profession” and not a business.
Maly, why is that lawyer defending himself in that way when no allegations have been made toward him!!!!!??????? Makes you wonder.
I hope the buyers didn’t use a lawyer recommended by the developer!!!!!
Well said, Slopefarm. The quote from the investors’ lawyer, Terrence Oved, said it all (my firm exhibited “the highest caliber of professionalism and integrity” in regards to buyers.
My legalese to English pocket translator says: “we could be disbarred for our actions, but not in New York, where lawyers would have to confess in writing to high crimes for that to happen.”
DIBS, I thik bkre has it right. These were pitched to be somewhat more affordable and were bought by people not as financially successful as yourself, hence the hedge fund comment. Not meant as snark by the owners, in my read of the article. They were empahsizing that they are not in a position to absorb the loss, and it is not a loss tehy should have anticipated, since title presumably passed cleanly.
As I understand the article, formerly silent financial backers of the development are suing the nominal developer and some of the buyers. Some of the folks being sued already closed and moved in and the investors behind the development are suing to rescind the closings as unauthorized. Unreasonable to expect buyers to agree to rescission in this case. I know from experience it can get dicey when the real money behind the project decides it does not like how things are going and wants to change the deal. Not legal advice, but I can’t see a court unwinding the transfer of title. This is an internecine disptue amongst owners and can be adjudicated with a monetary resolution. I can’t see how the investors woul dhave an independent claim to title, but their overly aggressive legal strategy ensnaring the buyuers makes my skin crawl.
agree w more4less. cool looking building at least.
quote:
hard-working middle class families
no offense, but hard-working middle class families are NOT buying in these developments :-/
*rob*