Settlement in Dispute Over a Condo's Size
The Times follows up on a story about a feud that began four years ago, when buyers who went into contract for a unit at 110 Livingston Street claimed that its living area was smaller than had been advertised. The result of this grudge match: “[Buyer] Mr. Bhandari, who is a lawyer, had asked for…
The Times follows up on a story about a feud that began four years ago, when buyers who went into contract for a unit at 110 Livingston Street claimed that its living area was smaller than had been advertised. The result of this grudge match: “[Buyer] Mr. Bhandari, who is a lawyer, had asked for a discount at closing, but the developer, Two Trees Management, declined, saying that according to the purchase contract, Mr. Bhandari’s only option if he disputed the measurements was to back out and get his deposit back. Both sides were so unwilling to compromise that they fought until March 23, the day the case was scheduled for jury selection. That day they agreed that Two Trees would return the Bhandaris’ deposit with interest, or $81,077, and pay the couple an additional $150,000 to terminate the contract. In return, the Bhandaris promised not to buy or rent in a Two Trees building for four years.” Bhandari also walked away from Two Trees’ offer of $20,000 to not disclose the terms of the settlement.
Suit Over 109 Square Feet Ends in a $150,000 Settlement [NY Times]
Yes, even if it is pre-construction, you can still figure sq. feet more accurately. Even understate square feet – wouldn’t be a crime. I’m glad someone pursued this. Yes, I took a measuring tape with me when I looked at apartments, but when one gets information from the developer, it should be truthful.
Now, if only someone would go after all the brokers who advertise their rental apartments in the “no fee” section on craigslist and have a court hold them to the “no fee” that they advertised.
% OF variation
/fixed
the rest of the country uses BOMA (building owners and managers association) formulas and guidelines to determine usable and rentable sf. NYC has their own standard, that among other things measure to the outside of the exterior wall. granted this is used primarily for commercial buildings, but it could just as easily be used for residential.
In your rentable sf you do include parts of the common corridors, lobbies, etc, so the cost of the common space gets distributed among the tenants (you also remove any floor opening more than 64 sq inches in area).
There IS a standard that COULD be adhered to (if anybody wanted to).
And btw the acceptable % or variation within either the BOMA or the NYC system is 2%
Here’s what I don’t understand: it seems as if Two Trees was willing to refund the deposit from the beginning, but the buyers didn’t want that. I can’t understand what the additional $150,000 is about…is it for the pain and suffering?
go rishi!
Because they can read? The dispute wasn’t over the fictitious gross sf statement as defined by unicorns for purpose of maintenance charges; the dispute was about the net dimensions of the rooms.
Both parties agreed the apartment size was correct as advertised, so this settlement just means Two Trees was unwilling to pay lawyers to fight the case.
This is why no one wants to sell or rent to lawyers.
It looks like hypertext ate my post’s belly.
Repost:
If someone stole a pack of beer (value under $10) from the corner bodega, he’d spend the night in jail, would have to show in front of a judge and be at the mercy of the state. The first time, he’d get away with probations. the second time, he might go to jail for 30 days.
Steal over $100,000 through misrepresentations, dozens of times, and there is no arrest, no DAs or criminal pursuits. Why is that?
This happens all the time. Almost every new construction building over estimates the “legal square footage” This causes quite an issue when the appraiser comes back with a lower value since they sometimes measure the gross living area and comp it to “legal square footage”
I’ve been told that developers will measure to the outside wall and even sometimes count a percentage of the common area or outdoor space. It’s really quite a problem that has caused issues for my clients at times.
I’ve been told that this is acceptable practice within reason to the AG office.
-Adam Dahill
WCS LENDING
adahill@wcslending.com