Contract

[Aaron]

Hey guys,

We're reviewing the purchase contract now, and I was wondering if
there's anything in your contracts that you asked to be changed. The
contract is quite aggressive about assigning liability in all
circumstances to the purchaser instead of the sponsor.

Thanks,
-Aaron

[Aaron Karp]

Thanks Eve! It looks like ours already has that rider attached now - you must have paved the way. We also have a clause that says if we delay the closing for any other reason, we need to pay 0.03% of the purchase price per day past the closing date. That seems pretty harsh.

On Wed, Jun 23, 2010 at 10:45 AM, <Evgeni...@lazard.com> wrote:

Hi, Aaron!

I agree, the contract is written with very aggressive clauses, all in favor of
the developer.
We protected ourselves by adding a very generous rider for 'mortgage
contingency' - any delays became irrelevant then, since if we couldn't get a
mortgage, all bets were off...
hope this helps.
Eve






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[Aaron Karp]

Thanks Eve! Glad to hear you had a positive experience. I'm looking forward to the same.

On Thu, Jun 24, 2010 at 12:09 PM, <Evgeni...@lazard.com> wrote:

Hi, Aaron!
Excellent (re: rider).  I think it makes things so much easier for the buyer!!

Now, delay and 0.03% of the purchase price penalty - i also picked on that but
was able to make peace with it - on the overall scheme of things i didn't think
it was that significant - if i was having emergency and needed an extra day or
two, i didn't think the price was that burdensome to pay for flexibility (1).
And also, as a personal experience - our closing was delayed because of the bank
for a day.  The developer's attorneys were super accomodating, no one even
mentioned the penalty and at the end, we received a check from the bank for the
trouble. (2)
So, i think the developer is trying to protect himself in case of bad faith
delays on the part of the purchaser.  I always thought that if you are buying
thousands of dollars worth of a good from them, they won't scream about extra
couple of hundred.  It's a speculation on my part, so please talk to your
lawyer...
Hope this was somewhat helpful...
e.





   "Aaron Karp"                                                             To
   <aaronkarp@gmail.c         Evgenia Lando/LAM/Lazard@Lazard NYC
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   Jun 24 2010 11:57                                                   Subject
   AM                         Re: Contract

[Cooper Station]

Hi Aaron (and others) - anything else that concerned you, or that you
wanted changed, in the contract?

> >    <aaronk...@gmail.c         Evgenia Lando/LAM/Lazard@Lazard NYC

> >    om>
> >  cc
> >                               ob...@googlegroups.com
> >    Jun 24 2010 11:57
> > Subject
> >    AM                         Re: Contract
>
> > Thanks Eve! It looks like ours already has that rider attached now - you
> > must
> > have paved the way. We also have a clause that says if we delay the closing
> > for
> > any other reason, we need to pay 0.03% of the purchase price per day past
> > the
> > closing date. That seems pretty harsh.
>

> > On Wed, Jun 23, 2010 at 10:45 AM, <Evgenia.La...@lazard.com> wrote:
> >  Hi, Aaron!
>
> >  I agree, the contract is written with very aggressive clauses, all in
> > favor of
> >  the developer.
> >  We protected ourselves by adding a very generous rider for 'mortgage
> >  contingency' - any delays became irrelevant then, since if we couldn't get
> > a
> >  mortgage, all bets were off...
> >  hope this helps.
> >  Eve          Aaron

> >            To    <aaronk...@gmail.c

[Aaron Karp]

There were a few things I didn't like (mostly penalties I deemed excessive), but the sponsor's attorney was tenacious and refused to make changes. We decided to move ahead regardless, with the nod from our attorney and the expectation that we'd probably never incur any of those penalties. And we really do love the apartment.