Credit: slonme/Adobe Stock Private Right of Action Under the Martin Act—Does It Exist?
In this installment of her Ask the Former Regulator column, Erica F. Buckley addresses the question of whether condominium unit owners or non-sponsor-controlled boards can sue sponsors under the Martin Act when they fail to follow through on what was promised.
September 18, 2023 at 12:00 PM
6 minute read
Question: We are a group of unit owners in a new construction condominium in New York City. The sponsor has not completed all that was promised under the offering plan and there are construction defects. Can we sue under the Martin Act?
Answer: The offer and sale of new construction condominium units is governed by the Martin Act—New York's blue-sky law. The Martin Act is primarily a disclosure statute, which empowers the attorney general to determine disclosure requirements for the offer and sale of real estate securities (such as new construction condominium units).
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