Luxury real estate is a lucrative business in New Jersey. When purchasers invest in a property that is promoted as upscale with extensive amenities, they are undoubtedly expecting to get what they were promised. However, it is unfortunately common for real estate developers to fail to live up to the hype. In some cases, not only do they not deliver the amenities they said they would, but there are defects in the construction and financial deception. Buyers should understand their legal options.
Lawsuit says development has defects and lacks promised amenities
A Hong Kong based real estate conglomerate is being sued because its luxury condominium in New Jersey is said to have various problems. The plaintiffs have contracts to buy units in the building. The developer, China Overseas, is accused of changing the Public Offering Statement (POS) after prospective purchasers signed contracts. The size of the units was allegedly altered and the units were 10 to 20% smaller than they were expected to be.
According to one plaintiff, she was given an hour to inspect her $1.59 million unit before closing on the property. She says the company informed her that there would be no delay in closing even if issues were found. Cost of living was also a concern after the POS was changed. Its new terms said that owners who were on the Condominium Association Board would be obligated to pay one-quarter of the unit that the superintendent lives in. There was also a special assessment which would result in other costs.
Regarding defects, there were myriad issues such as water leakage, gaps in wood planks and cracks on walls and ceilings. Repairs for a water main break were said to be shoddy. All plaintiffs had agreed to purchase units that cost a minimum of $783,000. They tried to cancel the agreements, but have been rebuffed and cannot get their deposit money – held in escrow – back.
Legal advice is critical with real estate disputes
Residential real estate is one of the biggest purchases a person will make. If there are expectations based on how the project was advertised and they are not lived up to, this is a concern that must be addressed. When there are clear defects that could cause danger, it is a bigger problem. For people who are purchasing real estate and found defects, misrepresentations or other allegations of wrongdoing on the part of the developer, it is important to have legal assistance to deal with the case. A firm experienced in real estate law may be able to help.
