Legal Recourse if Broker/Management Lie During Deal?

Legal Recourse if Broker/Management Lie During Deal?

Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes

I have a contract awaiting my signature on a solid offer on one of my properties BUT I can't shake a suspicion that I'm missing something on the deal.  I purchased 11 years ago in an up and coming area of Manhattan and am now being offered 4x what I paid...

Here's the catch,  though it is a very good offer, it is still way less than the avg sales price for a 2 bedroom in Manhattan due to income restrictions attached to our bldg.  Once the income caps expire - the value of the units in the bldg will double instantly.  There is a lot of confusion on when the income restrictions expire and I can't get my bldg's management company to give me a straight answer, despite asking repeatedly since April.

My agent, who lives in the bldg, just happens to work for the company that manages our bldg.  He approached me about selling my unit and "found" the buyer.  The buyer also just happens to be a broker who works for the company that manages my bldg.   I'm worried that I'm getting hustled - perhaps they know something I don't about when these restrictions expire?  

IF that is true and I can document that they withheld information, lied, or worked together to mislead me - would I have legal recourse after the sale to sue them?  

I've asked my attorney to weigh in and she said the bldg's attorney is the best person to give a definitive answer and I've been waiting on his response since April.  What can I do to protect myself if I move forward with this deal?

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  • Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    10y

    @Ericka G. sounds like they want this unit bad, and didn't realize you were so sharp. Keep it until the restrictions are removed :) trust your instincts. Good luck

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    I think I would be talking to the agency that actually determines when the restrictions are/can be lifted.  I'm sure it won't be a "one phone call, quick answer", but you should know more then than you do now.  It would be hard to sue someon because they "speculated correctly".

  • Investor · Troy, NY · Member since 2015 · 97 posts · 43 votes
    10y

     I would personally hold off on the sale until you get an answer to the income restriction question, then you wont have to worry about being hustled, or trying to prove that they did something wrong. It does sound like they want your unit. Sounds like to many insiders involved in this deal. Trust your instincts.

  • Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes
    10y

    Trust your feelings. There's a reason you're not getting straight answers. It'll be work to litigate later and you'll have no proof of intended harm.

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