New development transactions pose an entirely different set of risks, benefits, and logistical challenges than a traditional re-sale. Many times, Purchasers enter a contract for a Unit that is not yet built, in a building without a financial history and potentially not yet cleared by institutional lenders for closing. These factors often cause confusion around due diligence and delays when it comes to closing on the Unit.
Two first-time homebuyers retained Adam Leitman Bailey, P.C. to represent their interest in purchasing in a popular downtown new development condominium. Since the building was brand new, it involved a detailed offering plan review. Utilizing a shared screen function, Adam Leitman Bailey, P.C. and the clients were able to go through the pertinent Sections of the offering plan, which ultimately revealed that the Unit had “lot line” windows. This meant, if the neighboring property chose to build or develop, one of the bedrooms risked losing a window. This would force the owners to turn the former bedroom into an office or media-room. Ultimately, this risk was not something the clients could palette. Shortly after, the clients entered into contract for another Unit in the same development, without lot line windows.
An attorney of the Transactional and Banking Departments at Adam Leitman bailey, P.C. handled the closing.
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