This story, in slightly different form, originally appeared inthe New York Law Journal.

NEW YORK CITY-A federal judge in Brooklyn has declined toinvalidate the sales contracts of eight plaintiffs who madedeposits on apartments in a new Long Island City condominiumproject, then changed their minds as the construction dragged onand the economy spiraled down. The decision, Romero v. BorderEast River Realty LLC, by Eastern District Judge Allyne R. Rossis one of the first to address how the relatively obscureInterstate Land Sales Full Disclosure Act of 1968, which wasoriginally promulgated to protect out-of-state home purchasers whenbuying land sight-unseen, may apply in the present market.

Attorneys have been citing the law with increasing frequency onbehalf of clients whose prospective homes plummet in value afterthe contracts are signed but before the deals are closed. Fewdecisions, however, have been issued.

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