Expert: liznarr - 4/22/2004

Question
One year ago we executed an accepted offer on a 9th floor condo with a view of the state capitol building from 3 blocks away in a planned new building. Construction has begun, but we are still one year away from moving in. Another building has begun to go up across the street, and our developer admitted to us today that it will block our Capitol view.  He told us that he didn't know this would happen when we signed our offer one year ago.  He offered to let us out of our contract or to give us a small discount on a higher 13th floor condo that would still have a capitol view over the new building.  Even with the discount, we can't afford the higher unit at his offered discount.  The question is whether we have any rights here aside from just walking away. I would like to try to negotiate a better price for the higher unit or get some free upgrade concessions on our current unit.  However, in order to negotiate I need to know how much leverage, if any, we have. Any thoughts you might have on this situation would be appreciated.  

Answer
Hi Mary,

Several factors can come into play here.

First, when you entered into a Contract of Sale, was a VIEW of the state capitol building advertised as part of the sales package?  And if so, do you have any of the printed brochures or advertisements touting a “view of the capitol?”  (If not, you might try the archives of your local newspaper for copies of any advertising done by the developer if any such view was part of their marketing plan.)

If the view was THE reason you purchased, you might have some recourse against the developer, but the person who could best advise you regarding this would be a local attorney in your area.  He would want to see a copy of any printed advertisements you have, along with your Contract of Sale which could have other clauses in it which might help or hinder what you have in mind now.

Other questions which I would want an answer for are, “When was the construction permit issued for the building across the street?”  And, “Was the land simply vacant land when you entered into your Contract?”  If so, did you inquire as to what might be planned for that property?  In other words, if this was public knowledge, this could come into play, also.

It sounds like your developer is a reasonable person if he offered to let you out of your Contract and/or give you a discount on a higher unit.  Whether or not you will be able to negotiate a better deal could depend, in part, on the issues I raised in the preceding paragraphs.

View is an ALL IMPORTANT aspect of what you thought you were purchasing, and obviously a second or third floor unit of a, say, 20-floor unit would not have the same appeal as a much higher level unit.  Perhaps you could find a local Realtor in your area who would pull some comparable sales for you of other condos in the same general area without views and compare pricing for you.  This would give you a better idea of how much additional negotiation you might aim for.

Developers, like Realtors, don't like bad publicity.  If the developer knew, or thought, he might receive some bad press/publicity as a result of this incident, he might be more apt to negotiate better with you.

Gather up as much printed matter as you can that advertised VIEW and speak with an attorney.  It would be worth the price of at least half an hour of a GOOD attorney's time before you pursue this further.

Finally, if you had a Realtor representing YOU, involve your Realtor in the process.

I hope the above suggestions are helpful and point you in the right direction.  Good luck to you, and write again if you have additional questions.

Regards,

Elizabeth Narr