News

Manhattan Condo Ruling Could Set Precedent

NEW YORK (AP) — A New York federal judge has ruled that a developer of a Manhattan condominium must return a $510,000 buyer’s deposit.

The lawsuit was filed by a Greek shipping executive and his wife who tried to rescind their contract for a $3.4 million unit at the Brompton. The 22-story building was built by Related Companies.

Judge P. Kevin Castel ruled Wednesday that the sales contract didn’t meet the requirements of an obscure federal law intended to protect land buyers. The law covers the sale of condos in buildings of more than 100 units.

Buyers and developers say the ruling could allow hundreds of condo buyers in New York to get deposits back and curb development in New York.

A lawyer for Related said an appeal would be filed.

(Copyright 2010 by The Associated Press. All Rights Reserved.)