Legal Question in Real Estate Law in Illinois

I bought a unit in a condo building from a developer in 2008, in the contract there was a price guarantee that if the developer (or their successors in title) sold a higher unit in the building for a price lower than I paid then I would be entitled to the price difference from the original developer. The developer was foreclosed on and a new developer is selling units at discounted prices including a unit above me for $110,000 less than I paid for my unit. Do I have any recourse from the original developer with regard to my guarantee,,,, the developer will no doubt claim they have no money....thoughts?


Asked on 4/22/11, 11:47 am

1 Answer from Attorneys
Walter Palmer Law Office of Walter Palmer

The new developer would argue that he was not a party to the contract. Also, that the foreclosure, as opposed to a sale, severed the chain of title because they did not get it directly from the person who signed the contract. Bankruptcy and foreclosure have that effect. If the property had been sold then the part of the contract might or might not have transferred. In a bankruptcy or foreclosure, the property rights ("estate") "die".

As a point of legal education, getting that kind of arrangement as a covenant or easement would accomplish what you want it to. Easements can be for things other than for a right of passage.

Read more
Answered on 4/22/11, 12:55 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Illinois