An v. Leviev Fulton Club, LLC
United States District Court for the Southern District of New York
2010 WL 3291402 (S.D.N.Y. 2010)
In 2007, Steven An (plaintiff) entered into a contract to purchase a condominium unit from Leviev Fulton Club, LLC (LFC) (defendant). An paid a deposit of $82,000. A section of the contract stated that it was anticipated that the building containing the unit would be substantially completed by April 1, 2008. Another section stated that if the condominium was not in operation within 12 months after April 1, 2008, LFC would offer all purchasers the right to rescind their purchases and have their deposits refunded. The Interstate Land Sales Full Disclosure Act (ILSFDA), 15 U.S.C. § 1701 et seq., requires interstate sellers of undeveloped lots to file a statement of record with the Department of Housing and Urban Development (HUD) and provide purchasers with a printed property report before the signing of any contract. ILSFDA also provides for an improved-lot exemption, which exempts improved land if: (1) there is a residential, commercial, condominium, or industrial building; or (2) the contract of sale obligates the seller to erect such a structure within two years. LFC failed to file a statement with HUD or provide An with a report, as required by ILSFDA, before An signed the contract. Accordingly, An sought to rescind his purchase. LFC refused to return An’s deposit. An filed suit in the United States District Court for the Southern District of New York, seeking the rescission of his purchase agreement and the return of his deposit. LFC argued that the improved-lot exemption of the ILSFDA applied, because the contract required LFC to complete the condominium building by April 1, 2009, which was within two years after the sale. An and LFC both filed for summary judgment.
Rule of Law
Holding and Reasoning (Daniels, J.)
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