Condo Pre-sale agreements get extra warnings

Anyone familiar with CB developments Riverbend pre-sale cancellation fiasco won’t be suprised by this news: the BC Financial Institutions Commission has ordered that extra warnings be placed on condominium pre-sale agreements to more fully disclose provisions in the contract relating to terminating, extending or assigning purchase agreements.

Buyers will be required to initial the cover page of disclosure statements to confirm the provisions were drawn to their attention.

Pertinent information must also appear in “conspicuous type” on the statement’s cover page.

The rules also provide for more disclosure of developers’ background, including:
— Their experience in the development industry.
— Whether they have been bankrupt in the past five years or been disciplined in the past 10 years for matters relating to real estate, mortgages of land, securities, theft or fraud.
— Whether any conflict of interest exists that could affect a buyer’s purchase decision.

Failure to comply with the disclosure requirements could result in the issuance of cease-marketing orders or “administrative penalties” of up to $50,000.

6 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
ThumbsUp
ThumbsUp
12 years ago

hey

ThumbsUp
ThumbsUp
12 years ago

hey

Drachen
Drachen
12 years ago

Pope is on vacation. I guess everyone else is hanging out elsewhere because it's not getting updated regularly here.

Mike
Mike
12 years ago

Was that a tumbleweed that just rolled across my screen? Where is everybody?

jesse
jesse
12 years ago

"Presale contracts are like lottery tickets for speculators."Technically it's more of a call option. But the difference is, apparently, the seller of this option is not actually obliged to follow through. From that point of view it sounds like a pretty risky investment however in practice a developer reneging on a pre-sale contract has been rare. Though in a falling market the developer could be royally screwed once cancellations start piling up. In the next 5 years don't even think of crying if some developers go BK. They will have known the risks.

si fu
si fu
12 years ago

Presale contracts are like lottery tickets for speculators. I don't see this slowing the rush to buy, but it gives the developers more protection if the market conditions at project completion make it profitable to ditch the old contracts and resell.