The developers of West 47th Street condo building The 505 were so confident a judge would turn down buyers' requests to back out of their purchases that the developers dared the buyers to sue. Fifty-three buyers did, 18 settled or closed on their units, and 35 buyers remained in legal limbo. In December, the buyers' suit?which cited the arcane but oft successful Interstate Land Sales Full Disclosure Act (ILSA)?was dismissed. But now, just in time for Halloween, the case is back to haunt us: a federal district judge has ruled that those 35 buyers should get refunds.
The judge's ruling, The Real Deal explains, is based on a court decision handed down earlier this year overturning ILSA decisions at Harlem's Fifth on the Park and Long Island City's One Hunters Point. The judge in that case ruled that the buildings might have to release buyers' deposits, and the same could be true at the 505. Of course, most of the disputed apartments have been resold?and five units remain on the market in the building, according to its website?so this might not be the buyers' preferred revenge scenario.
· Judge overturns ILSA ruling at the 505, a victory for 35 buyers [Real Deal]
· The 505 coverage [Curbed]