Landlord Didn't Challenge Improvement Sales Contract on Time

Landlord received sales improvement disclosure form from outgoing and prospective loft tenants. Following the form's instructions, landlord served its objections to the proposed sale on tenants on the 20th day after receipt of tenant's answer to its request for additional information. Landlord then called the Loft Board and was advised to also file a challenge application. The Loft Board rejected landlord's challenge application because it wasn't filed within the same 20 days of receipt of the additional information. Landlord appealed, claiming that the sales improvement disclosure form didn't mention the challenge application requirement. The court ruled against landlord, and landlord appealed and lost. The disclosure form did state that landlord could challenge the fair market value set by the outgoing tenant's offer in accordance with Loft Board regulations governing improvement sales. The Loft Board's address and phone number were also provided. Landlord should have contacted the Loft Board for further instructions upon receipt of the disclosure form.

Hallman Sea Assocs. v. New York City Loft Board: NYLJ, p. 29, col. 1 (2/14/97) (App. Div. 1 Dept.; Sullivan, JP, Rosenberger, Ellerin, Williams, JJ)