Tuesday, December 6, 2011

N.C. Appeals Court rules against the Vue

The N.C. Appeals Court ruled Monday that the Vue can not force buyers to complete their purchases and that the developer can only keep deposits as damages if sales fall through.

The Vue last year sued four buyers who failed to close on their condos claiming they breached their contracts to purchase units in the luxury condo tower at Fifth and Pine streets. The developer said the defendants signed enforceable contracts, according to the court filings.

The Vue claimed it was entitled to specific performance of the agreement, meaning it wanted the courts to force the buyers to follow through with their purchase. The Vue also asked for damages "arising from the defendants' failure to timely perform their obligations."

Sales faltered at the uptown high-rise as the recession and weak housing market scared away buyers. Some people who had signed sales agreements in better economic times wanted out of their deal because they could no longer afford a unit, couldn't get financing or didn't want to buy property that appraised for less than the sales price.

In October 2010, a month after it started closing on units, the Vue's developer, MCL Cos. of Chicago, hinted it would sue those who didn't complete sales, referring in an e-mail posted on a blog to a court case where a judge ruled a Charlotte couple couldn't walk away from a $315,000 condo they'd signed a contract to buy.

Monday's appellate court decision was unanimous.


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