Cruz v. Leviev Fulton Club, LLC

711 F. Supp. 2d 329 (2010)

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Cruz v. Leviev Fulton Club, LLC

United States District Court for the Southern District of New York
711 F. Supp. 2d 329 (2010)

AR

Facts

The Interstate Land Sales Full Disclosure Act required interstate sellers of undeveloped lots to file a statement of record with the Department of Housing and Urban Development, provide purchasers with a printed property report before the signing of any contract, and make certain disclosures about the lots within the contract. However, the seller was exempt from the act if the land sales contract obligated the seller to erect a building on the land within two years. Eddie Cruz (plaintiff) contracted to purchase a condominium from Leviev Fulton Club, LLC (defendant) and made a down payment. When the time for closing came, Cruz failed to appear or tender performance and Leviev kept the down payment. Cruz sued, arguing that Leviev failed to provide him with the reports required by the act and he was thus entitled to revoke the agreement and get his down payment back. Leviev argued that it was exempt from the act because it had agreed to build on the lot within two years. Specifically, Leviev pointed to language in the sales contract that stated Leviev would give buyers a chance to rescind the agreement if building did not begin within two years and that Leviev anticipated building on the land within two years if there were no unavoidable delays.

Rule of Law

Issue

Holding and Reasoning (Gorenstein, J.)

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