Question
Luxury Apartment Co. acquires a beautiful high-end apartment complex named King's Landing from Seller Holding Co. The site's amenities include a crystal lagoon, a two-level
Luxury Apartment Co. acquires a beautiful high-end apartment complex named King's Landing from Seller Holding Co. The site's amenities include a crystal lagoon, a two-level gym, pool house, tennis courts, community gardens, business center, dog park, and more. After the land sale contract was signed, but before closing, Luxury Apartment Co. learns that a valid covenant binds the property's current and future owners from accepting housing vouchers. The land sale contract did not disclose this covenant, and Luxury Apartment Co. & Seller Holding Co. know that accepting housing vouchers would bankrupt the site due to the small amount paid by the housing vouchers. Luxury Apartment Co. has no plans to accept housing vouchers, and no laws require them to accept vouchers. Luxury Apart Co. comes to you, as their attorney, and asks whether they may cancel the contract. Please advise Luxury Apart Co. if they can cancel the contract.
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