A New York appellate court has upheld the dismissal of a breach of contract lawsuit involving a property purchase in the Bronx. The court ruled in favor of Astoria Park Realty LLC, affirming that the plaintiff, Vedat Rexhepi, was aware of the property's extensive damage before making his offer. This decision could impact future real estate transactions involving properties sold 'as is.'

The case, Rexhepi v. Astoria Park Realty LLC, was decided by the Appellate Division of the Supreme Court of the State of New York on November 5, 2026. The ruling affects Rexhepi, who sought to reduce the purchase price of a severely damaged property after claiming new damage was discovered. The case highlights the importance of due diligence and understanding contract terms in real estate transactions.

Background

The dispute arose when Vedat Rexhepi agreed to purchase a Bronx property for $550,000 in an all-cash transaction. The property had been significantly damaged by a fallen tree in March 2018, leading to a violation from the New York City Department of Buildings due to unsafe conditions. When Astoria Park Realty listed the property for sale, they disclosed the unsafe conditions and specified that the sale would be 'as is,' with no interior access allowed for potential buyers.

In February 2024, Rexhepi made an offer for the property, acknowledging the 'as is' condition and agreeing to purchase it without inspection. The parties executed a contract that included a disclaimer about the property's condition and required Rexhepi to accept it as it was, without claims for any changes in condition prior to closing. However, as the closing date approached, Rexhepi, now represented by new counsel, demanded a reduction in the purchase price, citing new damage he claimed to have seen through a window.

The Ruling

The Appellate Division unanimously affirmed the lower court's decision to dismiss Rexhepi's complaint. The court found that Rexhepi had waived his right to inspect the property and had previously acknowledged the property's condition in writing. The ruling stated, "Plaintiff expressly waived inspection before executing the contract, rendering his allegations concerning the property's precontract interior condition speculative and unsupported by firsthand knowledge."

The judges noted that the evidence presented, including property listings, photographs, and contractual disclosures, showed that Rexhepi was fully aware of the property's damaged state before he agreed to purchase it. The court emphasized that Rexhepi's claim for a reduction in the purchase price was not supported by the contract's terms, which specified that he accepted the property 'as is' and assumed the risks associated with its condition.

Impact

This ruling reinforces the principle that buyers must conduct thorough due diligence when purchasing real estate, especially properties sold 'as is.' It also clarifies the implications of waiving inspection rights in a real estate contract. The court's decision may deter future buyers from attempting to seek price reductions based on claims of undisclosed property conditions when they have agreed to purchase without inspection.

Real estate professionals and potential buyers will likely take note of this case as it underscores the importance of understanding contractual obligations and the risks involved in purchasing properties with known issues. The ruling may serve as a precedent for similar cases in the future, emphasizing the need for clear disclosures and buyer awareness.

What's Next

Details were not available in the court filing regarding whether Rexhepi plans to appeal the decision. However, the ruling effectively concludes this case unless further legal action is initiated.