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Protecting The Rights Of Purchasers Of Condominium Units, Jeffry R. Dwyer

Fordham Urban Law Journal

The late 1960s and early 1970s have witnessed an unprecedented boom in both construction and conversion condominiums. The inflationary spiral of the 1970s caused many developers of partially completed rental projects to seek substantial loan increases to cover cost overruns. Such loan increases often could not be justified by rental income projections. Accordingly, many developers and lenders turned to condominium conversions as a panacea for project cost overruns. However, with a shortage of end loan money, developers and lenders were left with unsold "inventory," increasing in cost with each passing day. Indeed, many developers of condominium units found themselves in …