The new apartment complex in Queens received a suit filed against it from the individual buyers wanting their money back. The suit states that the buyers were unable to receive loans after the financial meltdown and were not able to make closing. With the developers failing to file any disclosure statements, the buyers feel they are being scammed in a real estate fraud scenario.

This is nothing new with large scale real estate developers, though. Many instances of large suits being filed are in the hopes of getting the developers to reduce prices or change terms of their contracts. The difference here is that this is one of the largest scaled suits ever.

Buyers Want Money Back

After the collapse of the mortgage and housing markets, buyers in the development found it rather difficult to get the financing they needed to make the purchase. This means they would end up losing the 10% down payment they had put on the property for future purchase. Some of these properties run in the low millions, so 10% can be quite a large sum of money for these people to lose out on. If the suit goes through, it could be the beginning of other suits later down the road.