Manhattan mega-developers are reeling after a federal judge ruled that complexes with more than 100 units must refund buyers' formerly non-refundable deposits upon request.
Manhattan Federal District Court P. Kevin Castel ruled Wednesday that developer Related Companies must pay back a $510,000 deposit — plus interest — to buyers wishing to back out of the deal, based on a slightly obscure 1968 law, the New York Times reported. Castel said an affiliate of Related Companies had failed to comply with a little-known federal law known as the Interstate Land Sales Full Disclosure Act.
The decision could allow buyers in any condo buildings with more than 100 units to get their deposits back, according to the Times.
"It's a free ticket out," one real estate lawyer told the newspaper.
Lawyers for Related told the Times they planned to appeal the decision.
By Nina Mandell, DNAinfo.com
