Backing away from the Bid

We posted this in the free for all, but it’s worth taking a closer look: Eleven pre-sales buyers at the Vancouver Olympic Village are unhappy with their units and are trying to get out of their contract. They complain about changes to plan and faulty fireplaces. Presales contracts of course always favor the developer, and these issues aren’t enough to break the agreement, so the approach their lawyer is taking is to claim that the City of Vancouver took over as developer. Since they aren’t listed on the paperwork this would be a technicality that could nullify the contract. If they manage to make this argument work and other buyers want a way out of their purchases it could be more trouble for the O.V.

The buyers put down deposits of between $60,000 and $300,000 for False Creek condos priced from a low of $550,000 to units that sold in the millions of dollars.

They’re being asked to close their deals by the end of the month.

On Thursday, Baynham filed writs in B.C. Supreme Court against developer Millennium Water on behalf of six of his clients, who have addresses in Vancouver and West Vancouver.

Baynham says the City of Vancouver is the owner of the property, after bailing out Millennium when it couldn’t get financing. But that’s not disclosed in the sales agreements, he says, so the contracts are invalid and should be rescinded.

The city argues that Millenium still owns the project and is the developer, the city is simply the bank.

We saw a lot of pre-sales buyers try to walk away from their contracts during the mini-crash a few years ago, and developers suing the for the difference between their deposit and the current market value. It’s interesting that these buyers are trying to get out of their contracts while the stats still show that Vancouver property prices are still at an all-time record high.

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patriotz
10 years ago

@Newcomer:

Paul Krugman has been predicting doom since about 1998.

Well I don't think he's been predicting "doom" that long. Can you give us some links? (He has a column in the NYT you know).

But actually anyone who has been predicting doom since 1998 has been right, because the US has been in a bubble economy almost continuously since then. And the case can be made that the root problem started back under Reagan when both individuals and government in the US started living beyond their means.

patriotz
10 years ago

@NO-LYMPICS:

So…we agree to agree?

The builder should build on speculation, not the buyer buy on speculation.

No we disagree. Pre-sales are a good thing, because the pre-sale buyers taking on market risk allow more housing to be built than otherwise would be the case. And the more housing that's built, the better.

The only problem is that the pre-sale buyers are paying too much, and that is simply their problem.

Anonymous
Anonymous
10 years ago

Wealthy Chinese put house hunting on Vancouver vacation itinerary

http://www.vancouversun.com/business/Wealthy+Chin

pump media pump … sigh

chip
chip
10 years ago

@No More Gordocracies:

"Why are some people here so willing to support the mainstream media explanations of current events? "

As a former member of the MSM for 15 years I have no illusions about the nature of journalism, and its inevitable and welcome demise in the Internet age.

But having little faith in the intelligence and honesty of the media isn't the same as believing without any evidence the idea that police were manipulating the protesters.

For one, the police today aren't clever enough to pull it off and, two, there are far too many career students, union Neanderthals and over-indulged thugs in Canada who need no help from the police in behaving as if they were plucked out of the Rift Valley circa 150,000BC.

Hogtown Hozer
Hogtown Hozer
10 years ago

Oh oh, prices crater in Revelstoke: http://www.revelstokecurrent.com/2010/06/28/hopin… How can that be? I thought that rich Albertans were moving there and displacing all the locals – taking advantage of the free education and healthcare while dad works at home in Alberta? And after all, Revelstoke is hemmed in by the mountains on one side and a big river on the other (oh yea, they have a bridge but don't think about that), and the US border to the south (well, it's within 500 miles) and there not making any more ski resorts (are they?) so they're running out of land. And to top it all off, they have an A&W so everybody wants to live there. Gee whiz! Who would have thought that rec. property would crater before the rest of the market tanks? Whistler’s next (oops, it’s already happening). My… Read more »

Chilled
Chilled
10 years ago

@NO-LYMPICS:

Over a decade ago, actually almost 15yrs ago a buddy of mine rented a house off #3 road in Richmond. After work we would get a case of beer, sit on his porch and watch almost the same thing. Are you sure this was filmed in China?

Chilled
Chilled
10 years ago

@realpaul:

…….and I'll say what I said to you more than once. I met Zophia Digjitski when she lived in Logan Lake, prior to moving to Kamloops, and the insufferable alcoholic didn't give a rats ass about her chain smoking, alcoholic, criminal record holding, dead beat dad son.

The fact that you defend these vermin over the RCMP demonstrates your hypocrisy. You are motivated by political correctness on this issue more than the "politically correct" minded you so often take swipes at.

As much as I dislike the cops myself, given the same situation I would use a taser over wrestling with some stinking slob on a marble airport floor.

Tin Foil Hatter
Tin Foil Hatter
10 years ago

It's funny that many of you are disgusted at the mainstream media and realtors for pushing absolute bullshit, but it's crazy to think that the government and corporations are doing the same. Although some of the things said here are a bit overboard, almost everything you hear and see on the news is backed by an agenda. But anyways, this is a real estate blog, and I would prefer if this discussion were elsewhere.

Spec
10 years ago

Wow. Lots of folks with matching tinfoil hats on here tonight. Bored with Garth's blog? Gold holding stable? &-&

Newcomer
Newcomer
10 years ago

@Raguz:

The first indication of their lack of honesty is naming a Vancouver newspaper the Sun. We don't have one of those here.

Newcomer
Newcomer
10 years ago

@Anonymous:

Paul Krugman has been predicting doom since about 1998.

Raguz
Raguz
10 years ago

This journalism travesty is becoming really sad…

http://www.vancouversun.com/business/real-estate/

Newcomer
Newcomer
10 years ago

I think, obviously, it has to be Jizzbear.

No More Gordocracies
No More Gordocracies
10 years ago

realpaul

keep up the good work
http://www.youtube.com/watch?v=KgYf_bFlrQ4

NO-LYMPICS
NO-LYMPICS
10 years ago

#102 patriotz:

So…we agree to agree?

The builder should build on speculation, not the buyer buy on speculation. Builders would then be far more conservative. Kick out the CMHC, and turn the screws on offshore non resident buyers.

Stir…serves thousands .

NO-LYMPICS
NO-LYMPICS
10 years ago

106 Kim Jong-il buy 3 Says:

June 28th, 2010 at 8:58 pm

Oh sure you all think accident so funny ha-ha. Put all my hot money in auto body shop and personal injury law firm, now I buy westside vancouber town.

=================

Well, your soccer team sucks and got the boot. You didn't let your own people watch the game except for a few microseconds of bootlegged cable. what a plick !!!

Why don't you sell helmets and seat belts to those Chinese cyclists instead of laughing ?

NO-LYMPICS
NO-LYMPICS
10 years ago

#105 realpaul:

I agree….

Saw a news feature where an MD was interviewed who had done a study on the Exxon Valdez spill. Many of the clean-up workers have developed cancers.

This BP spill will have far reaching effects. Wildlife, ways of life (ie fishing and tourism etc.)and RE will collapse.

No More Gordocracies
No More Gordocracies
10 years ago

@chip: Actually Chip, although many of those destroying property were likely just the run of the mill angry disenfranchised protester there were proven instances in the Pittsburgh riots last year where many agent provocateurs were used in order to give the police an excuse to move on the larger crowds. This ploy almost always backfires anyway and gives the world the impression that the police state is real and a danger to their rights. In any case 1 billion dollars is ridiculous. Anyone hear Sarkozy state that when they get the meetings in France next year it will cost 1/10th the amount spent in Canada. Why are some people here so willing to support the mainstream media explanations of current events? Yes they slam the media as liars on the subject of real estate. I don't think the problem is… Read more »

Anonymous
Anonymous
10 years ago

Paul Krugman expects depression

http://www.guardian.co.uk/world/2010/jun/28/g20

Kim Jong-il buy 3
Kim Jong-il buy 3
10 years ago

Oh sure you all think accident so funny ha-ha. Put all my hot money in auto body shop and personal injury law firm, now I buy westside vancouber town.

realpaul
realpaul
10 years ago

NO #87, The problem in the Gulf States bordering the freaking biblical catastrophe ( notice I didn't say 'spill' or 'leak' or 'accident' as if it was a drink knocked over on the sundeck like the press has been soft selling it to be) is that as it says in the article, if a strong hurricane pushes the oil up over the berms and into the residential areas then the areas (entire cities and the coastal community will have to be evacuated as being so toxic that they are uninhabitable. And buddy…this is just the start of hurricane season, it's supposed to be an active one and Obama and his pal at BP can do nothing to control the weather or the message of a disater on that scale. I think the government is trying to sell the happy face… Read more »

jim
jim
10 years ago

@NO-LYMPICS: That was pure entertainment. What intersection in Richmond is that?

Best place on meth
Best place on meth
10 years ago

Are the Chinese more interested in our real estate or our gold?

http://www.mineweb.com/mineweb/view/mineweb/en/pa

patriotz
10 years ago

@NO-LYMPICS:

Like there aren't any existing condos for sale?

People buying pre-sales are speculators – all of them – and they are making a bet that prices are going up. The way things are supposed to work economically is that they should get a discount for taking on extra risk. It's their choice to buy or not buy at the offered price, and if things don't turn out the way they planned, TFB. The only obligation the developer has is to deliver what the contract specified, and that can be just about anything.