For the second time since August, a federal judge is letting the buyers of a shiny new construction condo get their deposit back under the arcane Interstate Land Sales Full Disclosure Act (ILSA). Following in the footsteps of District is Robert A.M. Stern-designed The Brompton, where buyers have long been wanting out. This week, the Journal and Times report, a U.S. District Court judge ruled that Greek shipping magnate Vasilis Bacolitsas and his wife, Sofia Nikolaidou, should get back their $510,000 deposit on a $3.4 million condo. The couple agreed to purchase the unit in May 2008 and asked for a $600,000 discount when the market tanked. Developer Related said no, but now the same unit is in contract to a second buyer for, uh, $600,000 less. And the court ruling could make buyer backouts possible under ILSA at any new condo building with more than 100 units. If this is going to start happening, we'd just like to ask that ILSA be renamed to something that actually describes what it is.
· Buyer's Remorse Gets Lift in Condo Ruling [WSJ]
· Condo Ruling May Let Many Cancel Deals [NYT]
· The Brompton coverage [Curbed]