In New York, condominium sponsor defect cases provide essential protections for unit owners and boards of managers facing construction flaws attributable to the sponsor. Sponsors are responsible for overseeing the assembly, construction, and sale of condominium units, as well as issuing the offering plan that contains representations concerning the building's construction and design.

There are a number of potential remedies to consider when seeking to address such defects, including those provided by common law, statute, the condo's governing documents (including the offering plan and declaration) and individual unit owners' respective purchase and sale agreements. As explained herein, it is extremely important to act promptly in pursuing these remedies as there are often strict timing restrictions which must be complied with, otherwise the claims may be deemed waived. Further, even if timely brought, if the sponsor has sold all its units at the time of an award of damages, there could be issues collecting on the award which may require costly litigation to breach the corporate veil (i.e. seek to hold the sponsor's individual principals liable) and/or claw back fraudulent transfers that the sponsor may have initiated in an attempt to avoid collection.