Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Scott E. Mollen Scott E. Mollen

Contracts—Condominium Sponsor Granted Summary Judgment on Breach of Contract Claim Arising from Buyer’s Failure To Close—Sponsor’s Prediction as to When Temporary Certificate of Occupancy Would be Issued Was Not a Misrepresentation of Existing Fact, But Only an Expression of Future Expectations

This action for breach of contract, legal fees and costs arose out of an “unconsummated sale of a condominium….” The plaintiff condominium sponsor (sponsor) and the defendant buyer (buyer) had entered into an “option agreement” (contract) for the sale of a condominium unit (unit). The contract was dated June 30, 2015. At the time of contract, the unit and the rest of the building were still under construction. The purchase price was $7,450,000.00. The buyer had made a deposit of $1,490,000.00. The contract incorporated the condominium offering plan (plan). The plan stated that if the buyer failed to close, he would forfeit the down payment as liquidated damages.

The plan provided that if the buyer defaulted under the contract, “time being of the essence with regard to the obligations of purchaser thereunder,” the sponsor may cancel the contract. If the sponsor cancelled the contract, the buyer would have 30 days to cure the specified default. If the default was not cured within 30 days, “TIME BEING OF THE ESSENCE,” then the contract would be deemed cancelled and the sponsor could retain the down payment as liquidated damages, plus interest and “Unit Upgrade Funds.” If the buyer defaulted, the sponsor could sell the apartment “without any obligation to account to (the buyer) for any of the proceeds from such sale.”

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Law Firms Mentioned


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.