(Act) on a recent luxury condo purchase. According to the Act, any development with 100 or more units must produce a purchase contract in a form that can be filed in the city registry prior to executing the contract. 15 U.S.C. § 1404(c) provides: “In the case of any contract or agreement for the sale or lease of a lot for which a property report is required by this title and the property report has not been given to the purchaser or lessee in advance of his or her signing such contract or agreement, such contract or agreement may be revoked at the option of the purchaser or lessee within two years from the date of such signing, and such contract or agreement shall clearly provide this right.”
A federal judge in Manhattan determined that because the agent of a luxury condo building did not comply with the Act, the buyers were entitled to rescind their contract and get back their $510,000 deposit with interest. This decision comes as a shock to many developers and agents nationwide.
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