The developers were victorious in two of the city's first cases under the Interstate Land Sales Disclosure Act (ILSA), at Harlem's Fifth on the Park and Long Island City's One Hunters Point. Or so we thought! But now, the Real Deal reports, a federal circuit court has overturned the earlier ruling that ILSA doesn't apply at those two buildings. If the building is exempt from ILSA, as developers argued at both buildings, buyers need to be told when they go into contract, the court ruled. Oops! The buildings may have to release buyers' deposits currently held in escrow?which amounts to $460,000 for seven apartments at Fifth on the Park and $535,000 for nine apartments at One Hunters Point. At the latter development, at least, the lawyers plan to appeal the case to the U.S. Supreme Court if necessary, so hang on for the ride.
· Appeals court overturns key NYC ILSA ruling [Real Deal]
· ILSA coverage [Curbed]