My dear purchaser's get your self a real estate attorney.

As others have said, it is very unusual that you can not close until 90% of the building is sold. And this is the sponsor telling you this? Or your mortgage broker? In 99.99% of the new developments, the sponsor wants to close even more than the buyers. They usually have a debt they have to pay for the construction. If this is something that your mortgage told you, then youre dealing with the wrong person. sunny_hong@countrywide.om

Hi, Cindy,

Unfortunately delays are the norm when purchasing new construction. The dates developers and their sales team tell buyers are always very optimistic. Who is telling you 90% have to sell in order to close? Is it your bank? That is extremely unusual if so. The building ought to be able to get the TCO (temporary certificate of occupancy) when the building is mostly finished. That's all they need to start closings. Ask your attorney about this 90% thing. Also, talk with your attorney and have him/her see if there is a "right to rescind" in the contract. That means there might be a clause that if the developer is not ready to close by a certain date you have the right to pull out and get your deposit back. I represent buyers and sellers in Manhattan and Brooklyn, and in a Brooklyn new development where I provided the buyer to the sale of one unit, I was able to leverage the right to rescind to negotiate a price reduction. In other words, I told the developer that since they were beyond the the date stated in the right to rescind, my buyers were going to exercise that right and walk, but that if the developer wanted to save the deal we would require a price reduction, particularly because the other units have already been reduced, and it wasn't fair for my people to both pay the original price and have the long waiting time. We got the reduction.
On the lease issue, I would suggest you talk to the landlord and explain the situation. You will probably have to sign a new lease, but landlords are generally fine with you breaking the lease because the vacancy rate is low and they can replace you with a higher price for the next renter.

Why would they require 90% of the units be sold? is this a requirement from your mortgage company or from the town where it is located? if you want an out or advise, first check with your agent to see hwat they advise otherwise seek out a real estate attorney who can review your contract and help you wither get things moving or get out of the contract. good luck

Cindy,
I hope you retained a competent NY Real Estate attorney before you signed your agreement.
Non- performance penalties for not closing or moving out by a certain date have been written into contracts by my attorneys, for homes I have personally purchased in the past, though they were not new construction...
Has anyone closed or moved into the new building yet? Buyers purchase anytime of the year and just before year's end is very popular for various reasons. What does your lawyer say? If you would like to speak about this with another NY real estate attorney, please email me and I will send you a list..

Have your lawyer review your contract for timelines that the builder has agreed to. Your recourse, if a timeline passes, is likely limited to being able to cancel and get your deposit back, but have them review it for you and see if there are any loopholes available. Builders often cover delays; recourse is usually very limited. Good luck- your attorney can/should advise.