Tuesday, May 15, 2007

High Building Costs Push A Developer To Pull Contracts

A lower mainland home builder has pulled contracts to build homes from the purchasers, and then put them back on the market for $100K more. This of course did not sit well with the would to be home owners, and now the government has stepped in.
Full Article

Developer told to stop marketing Riverbend houses
Canadian Press
May 15, 2007

VICTORIA -- The British Columbia government is stepping in to help would-be home buyers jilted by a developer at a new housing project in Vancouver's eastern suburbs.

The Superintendent of Real Estate issued a cease-marketing order to CB Developments 2000 Ltd. yesterday, after the company cancelled presales contracts to dozens of purchasers at the Riverbend site in Coquitlam and refunded their deposits.

Finance Minister Carole Taylor said those who found themselves suddenly without a home "will at least know that there will be no reselling of their home until various issues under the [Real Estate Development Marketing Act] are followed.

"So it gives everyone breathing room, a chance to see exactly what the situation is [and] exactly what the contracts say."

The developer backed out of the presales agreements for the Coquitlam project by saying there was no way the builder could break even by selling at the original price.

Instead, the single-family homes were being listed again at current market values, a difference the buyers estimated at up to $100,000.

Real Estate Superintendent Alan Clark did not say what issues are being examined, but he did ask people affected by the order to contact his office with their concerns.

The act requires developers to file amendments to disclosure statements when material changes that affect an individual's decision to purchase a unit in the development are made.

The cease-marketing order prevents the sale of any units until the act is fulfilled.

No comments: