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

NEW YORK CITY-A federal judge in Brooklyn has declined to invalidate the sales contracts of eight plaintiffs who made deposits on apartments in a new Long Island City condominium project, then changed their minds as the construction dragged on and the economy spiraled down. The decision, Romero v. Border East River Realty LLC, by Eastern District Judge Allyne R. Ross is one of the first to address how the relatively obscure Interstate Land Sales Full Disclosure Act of 1968, which was originally promulgated to protect out-of-state home purchasers when buying land sight-unseen, may apply in the present market.

Attorneys have been citing the law with increasing frequency on behalf of clients whose prospective homes plummet in value after the contracts are signed but before the deals are closed. Few decisions, however, have been issued.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.