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]
This is very interesting. I bought a house a few years ago that was advertised as 4070 square feet. After a couple of appraisals for mortgage refis that both came in at 3300 square feet I am concerned that the square footage was overstated when I bought the house. Given what has occurred here is there any recourse for someone who finds out after the fact that the square footage was inflated?
Good for him, and especially good for us.
Anything that brings a bit of honesty to to the NY real estate market is good. Especially good to turn down the NDA; it makes his fight a public service.
There is a typo in the article. The original press release also said the bedroom was 52 sq feet less than advertised.
The best part of this story is that Bhandari refused the hush money. Walentas has been getting over for years via other people’s silence. Sometimes through payoff, sometimes through intimidation. DeLepp’s question is right: how will this ripple? Not just for Two Trees but for all developers? This shows residents don’t have to settle for bupkis.
Make no mistake, it may be “only” $150K, but this is a big loss for Walentas. Until a standard is set (something more enforceable than “we’ve been doing it this way for years”) this outcome will have repercussions industry-wide.
“2 bedroom in 743 sq feet seems teeny tiny!”
When I watch shows on HGTV (yes, bad, I know) that profile homes and they show a 1 br/1bath condo at 950 sq. ft, I always say to myself, “In Brooklyn, that’d be a 3 br 2.5 bath. Shame.”
I think that was the square footage OF the living room/dining area or whatever, not the bedrooms and the rest.
The total sq. footage of the apartment appears to have been 1,137: “Both sides eventually agreed that the total advertised size of the apartment, 1,137 square feet, was accurate.” And this I do not get. Does this mean that the apartment itself was NOT smaller, just that the walls were misplaced to make other space larger?
15% smaller…
The buyers, Rishi and Heather Bhandari, were about to close on a $795,000 two-bedroom condominium at 110 Livingston Street, the former Board of Education headquarters, in 2007 when they discovered that the living area — the bedrooms, kitchen and living room — felt smaller than the 743 square feet that had been advertised. Mr. Bhandari returned with a tape measure and found only 634 square feet.
He took at 20K hit for future condo buyers.
2 bedroom in 743 sq feet seems teeny tiny!
The man was lawyer – shocking. Seriously though, it’s not the first or last time this will happen. That’s why REBNY’s protocol to their agents is to never put any square footage in their listings, which most of them (writer included) ignore.