By Adam Leitman Bailey, Title Partner

Newly constructed condominium buildings suffering from serious structural and nonstructural defects have infected my firm’s litigation caseload. Because of a total disregard of New York City’s fire and safety requirements, and the failure to provide insulation, a leak-free roof, a functioning HVAC system, and hundreds of other repairs, one of these buildings may need to be vacated and rebuilt.

Three other cases – one condominium needing an entirely new sewer system, another needing a new roof, and still another a new ceiling (the one promised in the offering plan is significantly different from the ceiling delivered) – have made the premises difficult to occupy and/or greatly reduced the value of the units. Somehow, these buildings passed government inspections and the attorney general’s due diligence process. Aggressive litigation has led to a favorable court victory in one case, a settlement in another, and lengthy discussions in a third. However, litigation is expensive. Many of these owners have their only investment and life savings on the line. Although fraudulent and reckless construction is extremely difficult to foresee, hiring a competent engineer to inspect the entire building before a closing may assist in recognizing potential problems. Second, negotiating a provision in the sale contract that permits the cancellation or delay of the closing date until the building has been rebuilt or repaired may prevent litigation and motivate the builder to remedy problems.