Not delivered as promised?

We’re buying a new construction condo and were able to see the space for the first time recently. There are some deviations from both the offering plan and floor plans they provided us. Most egregious is a large industrial air handler on the landing of our upper level, totally exposed. We were told it won’t be enclosed, and it’s inches from the bedroom door. There are other issues as well, measurements that are off, a weird built out section in the bedroom wall that reduces usable space, etc. We believe we can get out of our contract, but I’ve been wondering if we can pressure the developer to make some concessions based on the square footage we’ve lost and potential quality of life issues with noise and heat from this unit as well as some exhaust vents on our terrace which were not supposed to be there. Maybe they’d pay their own closing costs? I know I’m a dreamer in this seller’s market, but I thought I’d throw it out there and see what people think.

smwenk

in Legal 9 years and 8 months ago

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smwenk | 9 years and 8 months ago

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Thank you all for your information and opinions. It’s very helpful. I don’t believe this is a fly by night developer. For the moment I’m sticking with our lawyer. He’s got a lot of experience with this stuff, and a good reputation. I will, however, speak to other lawyers in case we need bigger guns. The sponsor is supposed to visit the site to look at the situation. Depending on what they say, we’ll push back and see what kind of reaction we get. I don’t think they can argue this is an immaterial change. We don’t especially want to walk away, since prices haven’t gone down since we signed the contract. I’ll let our lawyer take the first stab, and if it doesn’t go well, we’ll regroup. We’re still a ways from closing, so we can figure things out. I hope.

boredatwork | 9 years and 8 months ago

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If this isnt a total dog, and its really a seller’s market here, your new lawyer could suggest you would be willing to walk away from the deal for your deposit. All they need to find is a “greater fool.”

resident2 | 9 years and 8 months ago

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When you buy into new Condo developments from the sponsor, you never know if you are buying a future classic or a lemon. Only if you are buying from known long term developers with at least 20-30 years experience (except Trump!) can you have some assurance that the sponsor will still be there to cover the warranties. If it is already not what you signed up for, it will only be worse once you move in.

slopefarm | 9 years and 8 months ago

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I would add that you go over plans, prospectus and contract very carefully with a lawyer who knows this field before you sign, so you know how strong your position is if the developer deviates. Also, lawyers who do a lot of new construction closings tend to know from past experience which developers have troubling track records.

daveinbedstuy | 9 years and 8 months ago

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The other point to consider, as HelloBrooklyn12345 alludes to is that none of this bodes well for what else you may experience in the future, not only at closing but problems that develop during the first few years after new consruction is completed. I have ranted on brownstoner many times that people need to be very wary of any new construction and need to do their homework to determine the quality and reputation of the developer. This is a bad sign.

sqhaexgkh | 9 years and 8 months ago

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I had a developer issue with a new build last year, so bad we had to sell. Try to negotiate now, but keep in mind, if they are unreasonable now, then if there are issues that arise later on (there always are), it’s likely they will be unreasonable with those issues too. We are in a warranty lawsuit, because we learned after closing our “developer”‘s warranty was a joke and they had no intention of standing by it.

slopefarm | 9 years and 8 months ago

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I agree with Dave. You need a RE lawyer versed in new construction closings and/or litigation). How much leverage you have will be based on your contract in light of case law governing these kinds of situations (and you can bet this has happened many times before and been litigated). But what ever leverage you have, it is only leverage if you are prepared to walk. decide how important this particular apartment at this particular location is to you compared with what else is out there. that said, an exposed air handler right outside the bedroom seems worth more than just closing costs. that is going to be noisy. If it is handling A/C and heat, you are going to hear it a lot when you are trying to sleep. I’d either walk if they didn’t remedy it, or expect a discount on price because it will affect how much you can get from whomever you sell it to next.

daveinbedstuy | 9 years and 8 months ago

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FWIW, in a very large house I had a long time ago, I had an air handler put on the top floor, in a closet within a closet next to the master bedroom and never really heard it. You can sound insulate around it as well. Whatever you are able to “negotiate” is most likely already determined in your original contracts (which is why you need a better lawyer).

smwenk | 9 years and 8 months ago

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We do have a lawyer, but he’s kind of useless. We may find another – but I’d like to find out if there’s any precedent for this. The apartment is as promised for the most part, but things like the AC on the landing are, to my mind, quality of life issues that need to be addressed.

daveinbedstuy | 9 years and 8 months ago

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If ever a lawyer were a good idea to have for a real estate transaction, this sort of new construction which was unfinished at signing time is a perfect example. Do you have one? If not, you should get one.