Condominiums—Although Purchasers Had Closed On Their Unit And Made Certain Improvements, They Were Entitled to Rescission Under the Interstate Land Sales Full Disclosure Act—Sponsor Failed to File A Statement of Record With HUD And A Required Property Report—ILSA Applicable to Condominiums—Contract Merger Into A Deed Does Not Preclude Rescission—Fact that Unit May Not Be In Substantially Similar Condition Does Not Preclude Rescission, But Impacts the Amount of Refund that Purchasers Would Receive—Court Cited the Significant Cost of Litigation And Directed that Counsel, Accompanied by Party Representatives, Promptly Meet For At Least Two Hours to Attempt to Resolve the Matter.
The plaintiffs had commenced an action against a condominium developer/sponsor (sponsor) under the Interstate Land Sales Full Disclosure Act (ILSA). The plaintiffs alleged that the sponsor had “failed to file a statement of record” (statement) with HUD and “to provide a statutorily-required property report” (report). Each party had moved for a summary judgment. The court granted the plaintiffs’ motion for partial summary judgment as to liability and denied the sponsor’s motion.
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