MONTICELLO- A legal battle is in full swing after more than 50 purchasers of summer homes in Monticello’s Waverly Gardens have accused developer Waverly Homes Development, LLC, of failing to finish construction, performing shoddy work, and violating other provisions of state law.
According to court filings the developer allegedly violated the Martin Act, a New York law designed to safeguard purchasers from unscrupulous developers. According to the homeowners, the developer took nearly 100 percent deposits from the buyers, claiming he would construct their dream summer homes, yet never did.
The filings indicate that upon moving into their newly-built homes, the first wave of buyers were shocked to discover shoddy construction work that they say led to basement flooding due to improper drainage around the foundation. Additionally, the community’s pool proved to be structurally unsound and collapsed. According to the petitioners, Waverly Homes refused to complete the project and finalize deals with the remaining buyers, even after they contributed their own funds to finish the development.
In a bid to resolve the disputes, Waverly Homes Developers and the purchasers opted for rabbinical court arbitration, which is currently in its final stages. Before a resolution could be reached in rabbinical court, Waverly Homes Developers filed a mortgage against the property. According to court documents, the developer leveraged the property with a blanket mortgage and threatened foreclosure, placing the buyer’s properties at risk.
A foreclosure action was subsequently filed by Walkoff Holdings LLC. The homeowners believe that Walkoff is working in conjunction with Waverly Developers on the action.
In a recent decision by state Supreme Court Justice Meagan Galligan the foreclosure action against the majority of the purchasers filed by Walkoff Holdings LLC was dismissed due to improper service. The court determined that the attempted service was insufficient and deficient due to when it was made, leaving Walkoff without proper legal standing. Despite Justice Galligan’s dismissal of the foreclosure action, litigation appears far from over.
As the civil dispute continues, it remains uncertain whether the state Attorney General or Sullivan County District Attorney’s Office will launch a criminal investigation into the matter.
