From the “Ask Real Estate” Section of the New York Times:
When a New Condo Building Has Problems, Who Pays to Fix Them?
Typically, condo owners are responsible for funding repairs to building systems. But if it’s a construction defect, that changes the playbook.
Q: In May 2019, I purchased a condominium from the sponsor in a brand-new building in Brooklyn. From the beginning, there were issues with the heating, ventilation and air-conditioning system. The problems persist and affect the whole building. The repair cost is now $90,000. The company that installed the HVAC system filed for bankruptcy. The sponsor has taken repair funds out of the building’s operating budget, leaving the budget in the red. There is no reserve fund. The offering plan states that because the condo is new construction, “it is not anticipated that there should be any major capital repairs or replacements during the first five years of operation.” Who is responsible for the cost of the repair: the sponsor or the residents?
Click here to read the full article and answer to this question on the nytimes.com.
