Hurry! First 50 Deposit Holders Get to Modify Sale Contracts
A court order in Laketown Wharf Marketing Corp’s bankruptcy proceedings had given the developer authorization to modify contracts and to close under modified contracts. In terms of modification, the order stated that purchasers can switch to another available unit, or negotiate for a lower price.
This authorization, however, is limited to the 50 original purchasers who are first in time to close the sales under the modified terms.
If the deposit holder and the developer are unable to reach an agreement on closing, the resolution mechanism is also provided in the order. The sale contract can be terminated, with the escrow company returning 50% of the deposit to the purchaser and paying over 50% of the deposit to the developer.
