building at 317 16th Street

We're in a similar situation. We'd relied on their time table and our rate lock is about to expire. From an earlier reading of the contract of sale and the Offering Agreement, it did not look like the delay in closing is a ground to rescind the contract. If you and the Attorney General do believe that we have grounds for rescission, my husband and I would be interested in learning more. Thanks!

You two can consult with attorneys, but generally you have a right to rescind the contract a year after you miss your closing date.

The situation has changed a little from two years ago -- when sales offices were "optimistic," and buildings ran three months late, but it was an unusual building that ran 6 months late. Now it's really really hard to get a signoff from DOB and there's a big traffic jam -- it's hard to predict how late these buildings are really going to be.

ali r.
{downtown broker}

gl317

I've been in contact with the builder and I do believe we're close. I don't know what you've heard but back in June the TCO was rejected because the builder had not completed a fire alarm inspection on the building. Our builder's excuse was that they were told this was only a requirement for the CO and not the TCO. Unfortunately, the fire department said they could only do an inspection in August, but I've heard this timeline was expedited and the inspection was actually completed last Monday. They should have reapplied for the TCO by now so I hope we hear good news in the next week or so. It's hard to say with the amount of misinformation we've received, but the bottom line is the builder won't get paid until we all close. Call me optimistic but I do believe we'll be approved this time around. As far as pulling out, I've reached out to a lot of lawyers and they all say that we're locked in for 2 years at best. They're best advice was to contact the AG, but if we are in fact so close it hardly seems worth the effort. My wife and I have kept a pulse on related real estate options and we're still more excited about this place than any other similar option. I'm sorry that you locked in your rate already. We have not, but when I think about the rate we would have received in December compared to now it makes me ill. It's not going to get any better. We just have to hope our building gets resolved soon.

~JP

Thanks, JP. We're still really excited about the building and hoping that things work out. It did help to see that you guys were similarly concerned. Hoping that we have good news soon and that they use this time to sell the remaining units. Thanks again!
GL317

I might as well use this site as a forum for updates so we can all keep ourselves informed about what's going on. Keep in mind that I%u2019m getting all of my info directly from the builder so the blame is entirely one sided, which I have no way of verifying. Here are a few updates I've received since posting last:

7/25 %u2013 The TCO was rejected on the grounds that there was an outstanding electric violation from 1987; 15 years before our builder bought the property. Our builder went back to the DOB to explain this should have never stopped our TCO since this is a completely new building with a final electrical signoff.

8/01 - The electrical violation was dismissed and the TCO was resubmitted.

8/04 - The TCO was rejected on the grounds that the fire alarm was only certified by the licensed electrical contractor and did not include the engineer, even though the certification form states that an engineer OR electrical contractor can sign off. The engineer is going to our building tomorrow for an inspection so we can hopefully resubmit this week.

Beyond frustrated,

JP

Thank you for the update! I was just about to call Phyllis to ask for news. We'll call her as well and let you know if there is any additional news.

Will you use an inspector prior to closing? Though some people have said we might not need it for new construction, I'd feel more comfortable having an unbiased professional go through the apartment before we release our funds. These updates make me a bit nervous about their efficiency.

GL317

Good news, the TCO was approved last Friday, 8/08/08. I guess the Chinese were right about that number. Check it out here:
http://a810-cofo.nyc.gov/cofo/B/301/805000/301805170T001.PDF

My wife and I plan on closing in a few weeks and, yes, our closing is contingent upon an inspection. It costs about $600, but when you're investing this much it's worth the peace of mind.

Best,

JP

JP, do you have a good inspector that you'd recommend? We're looking for one as well. Do you think we could get a good rate if there are a few of us in the same building?
Thanks again!
GL

We used Robert Albani from Home Tech Consultants (718.819.0174). We just had our inspection done on Wednesday and he was very thorough. Altogether, we were pleased with his work and the craftsmanship of the building. He's also been in the building for another inspection so he has a good frame of reference. I wouldn't mind sharing our inspection for comparisons sake.

Also, I received word this week that the only thing preventing us from closing is a declaration from the city surveyor. Our lawyer said this would take about a week and the builder said it would take less than two weeks. We'll see what happens, but we have our hearts set on closing before before September. I think it's going to happen for us, but before I received word about the TCO last week I wrote an angry email to Brownstoner and they actually published my grievances:

http://www.brownstoner.com/brownstoner/archives/2008/08/delays_at_317_1.php

Thank you! We've set the appointment with Robert Albani and would be glad to compare inspection results, too.

We just heard from our broker that they expect to be able to close next week though there is no official word from the Seller. Still, we're very hopeful.

Regards,
GL

Hi, We're looking at a unit in the building and have a question on the tax abatement. I'd love to talk to someone about it - is there anyone who has signed who I can talk to?

GL, glad to hear the good news. The last I exchanged with the seller he said that the Declaration from the City Inspector should come on Monday or Tuesday of next week. This comes later than anticipated, but I'm hoping this is the final straw. We were given a 30 day notice and a 8/24 closing date. I'm hoping this timeline sticks because our extended sublet is up at the end of this month. I went to the open house last Sunday and actually learned that there are two couples living in the building on a temporary lease until they close. I asked our lawyer about this and the seller's lawyer actually adenied it! I could care less so long as we close before the months end. My personal email address is justinp132000@yahoo.com. Shoot me an email and I'll forward you our inspection from Albani. We used it to compile a punchlist and plan to have a final walk through in about a week. Unfortunately, we were one of the 3 unlucky buyers who bought when the listing was still with Corcoran. Evidently, the seller has broken all ties with Corcoran and scheduling anything through them has been nightmare. I hope you're not in the same situation.

flny, I asked the seller about the 421a tax abatement back in March and they said it was in place already? What is your question?

Hi everyone - well it's good to touch base with others who are in contract in this bldg. We've been in contract since late last year and have waiting through the endless delays. We expected the closing to be pushed off, but the total lack of responsiveness (and I'm mostly talking about the Corcoran listing agents) has been frustrating.

We finally have our closing date set, but I'm worried that the sponsor won't be ready. There is apparently at least one closing scheduled for next week (9/22). Our lender has also added the requirement that at least one other unit close before our financing will be finally approved. This on top of the fact that the extended delays have meant that our financing has gone from 90% to 80% Total nightmare.

We really like the building, however, and believe it's a good value. Of course, as Wall St falls into the toilet, we're getting nervous about making any kind of big investment.

Re: the people living in the bldg, it's apparently true. There have been people who have been w/o a place to stay bc of the delays, so I think the sponsor showed some mercy. It would be great to hear from them to get feedback on their first impression of living in our new bldg.

On a more pleasant note, I'm quite excited about the roof terrace. It's really nice up there. Hopefully we can arouse interest in buying some tables/chairs/planters to spruce things up.