velocitired
10-02-11, 10:36
Have any of you guys encountered with or heard of the developer failed to take over the en bloc property and was sued by the owners?
Three years ago, my auntie who lived in an old 6-unit walk-up apartment property in the East was en bloc, but it turned out that this small-time developer was unable to complete the sale transaction due to some bank financing issues. To the owners' angst, the developer simply kept mum about their inability to take over the property until the very due date, and the owners had already vacant the place by then. For the next few months, though the developer had promised to secure for alternative financing, but eventually the efforts were in vain. To cut the story short, my auntie and one other owner are in the legal tussle now with the developer for compensation of sale price-difference of half-a-million $ per unit for two units, as both had since sold their individual unit to open market at a lower price (not comfortable to move back in as the units were vacant for at least 9 months). Now, my auntie and the other are in the dilemma, on one hand they are not willing to accept the proposed 20% of total amount offered by the developer for private settlement (I think the developer is trying hard their luck), but on the other hand, they are worried that the developer will simply wrap up the company and disappear. My auntie asked me what is the best decision to handle this issue, but I simply do not have an clues.
So would be appreciated if any kind soul here could offer your piece of advice.
Thanks in advance .....
Three years ago, my auntie who lived in an old 6-unit walk-up apartment property in the East was en bloc, but it turned out that this small-time developer was unable to complete the sale transaction due to some bank financing issues. To the owners' angst, the developer simply kept mum about their inability to take over the property until the very due date, and the owners had already vacant the place by then. For the next few months, though the developer had promised to secure for alternative financing, but eventually the efforts were in vain. To cut the story short, my auntie and one other owner are in the legal tussle now with the developer for compensation of sale price-difference of half-a-million $ per unit for two units, as both had since sold their individual unit to open market at a lower price (not comfortable to move back in as the units were vacant for at least 9 months). Now, my auntie and the other are in the dilemma, on one hand they are not willing to accept the proposed 20% of total amount offered by the developer for private settlement (I think the developer is trying hard their luck), but on the other hand, they are worried that the developer will simply wrap up the company and disappear. My auntie asked me what is the best decision to handle this issue, but I simply do not have an clues.
So would be appreciated if any kind soul here could offer your piece of advice.
Thanks in advance .....