Case Studies

Back

Adam Leitman Bailey, P.C. Wins Landmark Victories Using Arcane Federal Law: Judge Rules Condo Deals Come Under Federal Law; a ‘Game Changer’ Decision


Game Changer Case_IMG

In late 2008, the real estate sky had started to fall and fall quickly. As a result of the loss of financing and wages, many purchasers in contract to buy a unit in a newly constructed building were either no longer able or willing to close on their units. To make matters worse, the credit markets had been greatly curtailing the flow of money into the hands of developers from purchasers. In March 2008, one of the last outposts of lending, Fannie Mae and Freddie Mac, put the brakes on loans to newly constructed buildings by requiring sales of at least 70 percent of a building’s units in order for its buyers to obtain a loan.

A prominent magazine noted Adam Leitman Bailey as the real estate attorney, “credited with being the first lawyer in New York City to use the ILSA provision.” Although this policy later changed to 50 percent and “sold” became “in contract” for most lenders’ purposes, the perfect real estate storm became a hurricane when many developers no longer had the capital to deliver the building as promised in the marketing materials; Engineers found serious problems with many structures including in some cases the failure to build in accordance with fire prevention protocols and materials.

Thousands of purchasers turned to Adam Leitman Bailey, P.C. to find them some way to rescue them from financial ruin. Turning to a forgotten federal statute called the Interstate Land Sales Full Disclosure Act, Adam Leitman Bailey, P.C. discovered a way to void the contracts of sales for buildings over 100 units. Adam Leitman Bailey, P.C. assisted almost a thousand purchasers in closing on these homes at discounted prices or obtaining a refund of their deposits. The Wall Street Journal quoted a prominent New York developer’s attorney calling these holdings a “game changer” affecting hundreds of newly constructed buildings nationwide. Another prominent magazine noted that Adam Leitman Bailey, “pioneered the use of the ILSA provision to get buyers out of contracts in the wake of the financial crisis.”

Adam Leitman Bailey is credited as being the first lawyer in New York City to use the ILSA provision to get buyers out of contracts in the wake of the financial crisis.

Related Content

“I’ve learned so much and gained knowledge with a desire to work in the real estate department.” “We are finally at the point in time when I can say thank you so much for your phenomenal work. Your faith in this case was wise and the outcome matches.” “Hard work and risk pays off for closing” “ROCKSTAR. That’s what you are…Jackie…How can I thank you enough for all the work you have done…” Adam Leitman Bailey, P.C. Prevails at Traverse Hearing, Defeats Borrower’s Motion to Vacate and Dismiss, and Wins Judgment for Lender ALBPC Twice Saves Tenant’s Business from Certain Death ALBPC Releases Daughter, Mere Accommodation Signer on Lease, from Lease and Allows Her to Avoid Nonpayment Proceeding Adam Leitman Bailey, P.C. Gets $215K for Board after a Botched Common Charge Lien Foreclosure Adam Leitman Bailey, P.C.’s “Watershed Case” Changes Condominium Development Original Promissory Note Lost—Lender Satisfied UCC 3-804 and Entitled to Judgment Q&A: A Broken Shower Non-Disclosure Agreements Defend Against Fishing Expeditions Senate Votes to Strike Down ILSA Requirements for Condos The Real Deal Credits Adam Leitman Bailey as First Lawyer in NYC to Use the ILSA Provision to Get Buyers Out of Contracts in Wake of The Financial Crisis Adam Leitman Bailey, P.C. Prevails at Traverse Hearing, Defeats Borrower’s Motion to Vacate and Dismiss, and Wins Judgment for Lender (Part II) Adam Leitman Bailey, P.C. Prevails at Traverse Hearing, Defeats Borrower’s Motion to Vacate and Dismiss, and Wins Judgment for Lender (Part I) Christopher Halligan Speaks to the New York State Bar Association on Jury Trials in Landlord – Tenant Proceedings Adam Leitman Bailey Lectures for New York State Bar Association on Easements, Adverse Possession and Arcane Laws to Overcoming Building Obstacles Adam Leitman Bailey Guest Lecturer at New York Law School’s Landlord-Tenant Class NYSBA – Removing Real Estate Development Obstacles: Zoning, Restrictive Covenants, Easements, Adverse Possession and Boundary Disputes

Adam Leitman Bailey, P.C.

NEW YORK REAL ESTATE ATTORNEYS