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Hear Hot Property with Ozzie Jurock every Saturday morning between 8:30-10 am on CKNW AM980
Tip of the Week:
5/12/07
Developers Welching on Pre-Sales
Not just one developer welching on presales... Not just in Poco.
Also:
Victoria … but there was only a hole in ground.
Penticton developer increase your price by 10.8% or don’t buy!
Calgary – 7 developers – increase or we’ll return the deposit. In one case a 30% increase was asked for.
Latest Vancouver:
La Galleria I at UBC from Orca West Developments (Platinum) Ltd. Gave buyers 3 days to come up with more money or they would return the deposit.
What to do?
- Courts may not award us specific performance as the property was not unique and there are other freehold properties in the area.
- If the court awards damages – can you collect? Most developments are structured as single purpose entities and the developer most likely had no assets.
When buying a presale:
1. Check out developer … BUY reputation
2. What else did he build, call previous buyers
3. Ask for: Copy of Builder’s Guarantee
4. Have your lawyer review the deal
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