Pre-Sales and Receivership in Vancouver

Glad rhymes with Sad

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Courtesy Chandler.com

Another two condo projects hit the Receivership’s books.

Is this the final act?

According to a CBC report – **no longer available** – Chandler Development’s H&H project in Yaletown, and the Garden City project in Richmond is now in receivership.

This “comes on the heels of another developer, the Eden Group of Companies, citing financial difficulties for a decision to halt its third development in Vancouver in less than four months.”

Comparable to Sophia, Riverbend, Bambu, OMA??

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Courtesy Chandler.com

The Stink

Bowra the receiver, said they have “discovered that 23 condos in the Chandler Development Group projects were allegedly sold to insiders at prices well below market value”.

Good News – No guarantees

It appears (my emphasis), that the other buyers will get their condos for the price paid as there is enough money available to finish the job.

See the full story CBC

I strongly recommend

If you purchased a unit in one of these projects you should be speaking with your lawyer.

Other Opinions on This Issue

No doubt current and future buyers will be glad to wait for the following oasis of sanity.
NDP housing critic Diane Thorne said unless our laws change, presales could be the next leaky condo crisis. “I think it should be a guaranteed price,” she said. “Prices will go up in the beginning, but I think there’s more security for homeowners. They won’t buy something they’ll lose or not be able to afford.” Bob Rennie, who makes his living marketing presales, says reputable developers welcome new laws. “Anything the government wants to put in place to protect the consumer doesn’t worry those top 15, 20 developers,” he said. “If you’re getting creative with your financing, or your profit margin is too low, that developer may worry. But then again we’re protecting the consumer so let’s do it.”

Courtesy CTVBC

Will Wertheim of The Residential Group Realty discusses “Pre-sale Risk” to buyers offering potential solutions for what may be the beginning of a larger issue in the near future. Matthew Collinge of Royal Lepage fame, offers another perspective into the Chandler issue.

Got a Vancouver Real Estate question? I’ll do my best to answer it. Call or send me an email. Larry

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

Donna Says:
March 1st, 2008 at 2:30 pm

If you could help get the message out to (buyers only) of the Sophia Development. It will be greatly appreciated.

People can contact savesophia@gmail.com for information and guidance. Buyers will be meeting together soon.

March 8th, 2008 at 9:28 am

Donna,

No worries. Good luck.

Kate Says:
May 8th, 2008 at 11:51 am

Garden City Living by Chandler/The Bowra Group has re-released those units that were recovered advertising them as having rock-bottom prices. Is it safe to buy those units that were recovered by the receiver?

May 8th, 2008 at 2:54 pm

Kate:

There are no guarantees. Just ask the first buyers!

Should you decide to put in an offer please, please ensure that you include a condition making your purchase “subject to your lawyer’s approval.”

As for “rock-bottom prices”. Really? The market is on the edge of tilting. You may on the crest of wave about to hit those rocks.

I’m just sayin……..

Raz Says:
November 27th, 2008 at 8:01 am

Hi, we put down a deposit of 80,000.00 on the H&H penthouse in August. Contract says the project must be completed by Dec 31, 2008. We can not sell our current property and bank will not give us mortgage on new place unless we sell. Is there any way we can get out of deal at H&H and get our deposit back? Can you recommend a lawyer?

November 27th, 2008 at 10:13 am

Raz,

“must be” completed. There are many more words after that in your contract that gives the developer wiggle room but not you.

the place was in receivership in Feb. Were you talking to your Realtor and your lawyer back then?

“you can not sell your house”.

This is brutal, but I think you meant to say you can not sell your house at the price you want. You forgot the part about at a price someone is willing to pay. There is a difference! In this fall 08 market that could be a substantial difference.

Re: recommending a lawyer – Find one with a lot of pre-sale/condo experience.

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