A condominium developer sought declarations that purchasers of two commercial hotel condominium units were bound by their agreements of purchase and sale and that their notices of rescission were invalid.
The purchasers argued that a revised disclosure statement contained several undisclosed material changes, including cost allocation shifts, lack of PATH access, kitchen configuration changes, ownership changes in certain units, and a reduction in the building’s overall height.
Applying the objective test for material change under the Condominium Act, the court found that none of the alleged changes—individually or cumulatively—would have caused a reasonable purchaser to rescind the transaction.
The developer established that the changes did not materially affect the investment value or income potential of the units.
The court therefore held that the purchasers’ rescission notices were ineffective and that the agreements remained binding.
