Terms of condo auction at m127 are changed

Purchasers who forked over $30 for a bidding package learned minutes ago that the developers of the building at 127 Madison Avenue no longer face foreclosure.

According to an announcement by Paramount Realty, which is conducting the auction, “as of Friday, June 25, 2010, Bank of Smithtown has been satisfied in full.”  The statement continues:

The Sponsor wants to assure you that they can and will close with every buyer at today’s auction.

Referring to today’s lending environment, the announcement said further that the seller will grant a 30-day extension to the original 30-day closing date provided that the purchaser increases the downpayment by 5 percent with seven days’ notice. The sales must be all cash.

In addition, all five of the condos being offered for sale without reserve will be displayed on a board as “available units.”  The successful bidder of the first round will win the right to select his or her unit of choice, followed by the winner of the second round and so on.

The high bidder of each round is limited to purchasing no more than two units per round.

These eleventh-hour changes are odd, making me wonder just what gives.  Unfortunately, you’ll have to decide for yourself if you are planning to attend the auction and bid.

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Malcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

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When in doubt, let it all hang out

The law minces no words.

When it comes to letting buyers know about a defect in a property that can materially affect its value, it is impossible for sellers to err in disclosing what they know.

And when it comes to working with a broker, the broker may not fail to disclose his or her relationship to buyer or seller. Nor may brokers hide any material defects of which they are aware.

With respect to sellers, they need to appreciate that defending themselves in court will far exceed the amount of money they think, probably erroneously, they will lose Continue reading