Buyers of new condos are well advised to beware

Recent articles in the New York Times that are cited in my biweekly newsletter touch on the problems of buying condos in new developments. Many folks are bewitched by the notion of living where no man has lived before.

But it’s a dicey proposition.

Not only are the issues concerning finishes, ongoing construction, inevitably rising monthly common charges and punch-list items that take forever or never to be resolved, but the developers’ integrity can be a source of sorrow.

2008_12_sheffieldnewConsider the Sheffield 57, where business partners are suing and even clobbering each other, and rent-regulated and market-rate tenants are suing the developers. That’s not all: Some 100 condo owners also are suing the developers. They accuse them of being $5.4 million behind in paying there common charges, among other things. Furthermore, unpaid contractors have placed liens against the numerous unsold units in the building, and then the state halted sales altogether.

It is not a pretty picture, Continue reading