OV Buyers sued for wanting out

What weird times we live in.. As people lined up to buy Olympic Village suites at firesale prices others are being sued for not wanting to complete their pre-sales agreements. A few years ago the lawsuits against pre-sale buyers went not only for their deposits, but for the difference in sales price of the unit as well. Fortunately for OV presales buyers they only seem to be going after the deposits, which are generally less than $100k.

In one of the lawsuits just filed, Port Coquitlam resident Cordelia Lins and her husband had put down $50,090 in May of 2008 for a unit they originally agreed to buy for $500,900. Problems with records make it difficult to determine the assessed value. Ms. Lin said she couldn’t say anything about the lawsuit because she was “in negotiations.”
Vancouver resident Gee Lim, who paid the largest deposit for a unit he originally agreed to buy for $1.4-million, did not answer his phone. He originally agreed to buy his unit in April 2008. Last July, the province’s land-assessment authority valued that unit at only $1.172-million.
The third buyer, who also put down his deposit in April 2008, has no phone listing at the Richmond address provided in the suit. Tian Qi had agreed to pay $516,000 for his unit in the Kayak building that is now being marketed. It was assessed at $504,000 by B.C. Assessment Authority last July.

Please note these are different cases than the six buyers who sued over building deficiencies, most of those cases have been settled. Read the full article over at the Globe and Mail

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[…] 4SlicesofCheese at vancouvercondo.info 22 Feb 2011 8:24pm, and later – “My company just laid off 80 well paid people. On average 75-80k a year jobs. Some with kids, condos, even houses. Some just bought recently.” … “Game development, Tech Sector.” […]

Dave
9 years ago

Dave: "Crude's going to $120 guys".

VCI: "You are an idiot".

Reality: The next day crude hits $119.79.

Dave: "LOL, Sorry that I was off by $0.21"

jesse
9 years ago

@Devore: "The thing with oil too is that there is A LOT of speculation in it now."

If you mean oil futures then yes for a few months prices can stay high. However that is future product they're trading, which has to be received and stored at some point. If demand were to drop off at $120/barrel like I think would happen, it's just not physically practical to hoard and prices will fall quickly.

jesse
9 years ago

@Dave: "Alberta oil money will flow into BC."

I don't know about all of BC but certain cities, like Kelowna, have claimed to rely on Albertan buyers to snap up properties. What Kelowna needs is another recession to improve its real estate based economy… wait…

fixie guy
fixie guy
9 years ago

#193 Dave Says: "Markets hate uncertainty so up we go."

That southbound left light to Oak from 12th, you never know about the damn thing. After five PM, sure, almost always an advance arrow. Before that? A crap shoot, depends on the number of cars behind you.

Markets hate any uncertainty, Vancouver RE going up for sure.

Devore
Devore
9 years ago

@jesse: The thing with oil too is that there is A LOT of speculation in it now. It's not just based on supply/demand, but also investing and speculation.

Dave
9 years ago

@jesse:

Yes, I think $120/barrel oil slows the economy before new supply at $120 can come to market. I think the data backs that up.

Oil prices are not good news for the economy. I think the Bull run in the DOW is getting long in the tooth and it will start looking for reasons to correct. This might be it.

Ironically, this might have a positive effect on Vancouver real estate because a slower North American economy means lower interest rates and the Alberta oil money will flow into BC.

jesse
9 years ago

@Dave: "Where was that $120 / barrel oil production?"

It's likely as simple as increasing shiftwork, or converting mixed-use wells to oil again. I tend to agree it's not that elastic. $120/barrel oil takes up way too much of GDP and I doubt it's sustainable without causing an economic slowdown. JMHO.

Dave
9 years ago

@jesse:

They aren't accessible in the short run. It takes times to bring that online and distribute it.

Look at the years leading up to the price peak in 2008. Production maxed out in 2005 at 85 mbpd and prices kept marching upwards. Where was that $120 / barrel oil production? Please show me on the production graphs.

jesse
9 years ago

@Dave: "That is huge for oil supply because oil is a relatively inelastic good"

Ummm no not really. There are more than a few reserves on standby that are profitable at $120/barrel.

Dave
9 years ago

@Keeping An Eye On The Pimps:

Sigh… Yes I am sure. Pretty basic stuff. It only takes a small shift in supply either way to have major pricing impacts. Trust me on this.

Dave
9 years ago

@DaMann: Natural gas and oil are two different beasts and the overlap is much smaller than most would assume. They are not substitutes in the short or medium run. Lots of natural gas in North America. US oil production peaked 20 to 30 years ago and they will never get those numbers back. Canada will still increase production and I believe Alberta can pump out another 2 mbpd within five to ten years. World oil production hasn't gotten past 85 mbpd for the last 3 to 4 years. That's the longest period of time for which production was stagnant for like a century. That should be enough to make you consider that maybe we near peak production. I personally don't think we are at the peak yet, but in the short run, I don't think we are going to break… Read more »

Best place on meth
Best place on meth
9 years ago
Keeping An Eye On Th
Keeping An Eye On Th
9 years ago

@Dave:

"Only 2%? That is huge for oil supply because oil is a relatively inelastic good."

Dave, are you absolutely sure you understand inelasticity?

Are you sure oil is inelastic?

or is this another one of your versions of economic theory?

Also, are you related to this guy?

http://forums.castanet.net/viewtopic.php?f=50&amp

DaMann
DaMann
9 years ago

I read an article today with an interview with someone in the US , can't remember his name ( it was on Bloomberg) but he works in the oil industry. He commented that the oil reserves and gas reserves in the US are at a 10 year high, yes 10 year high. N America is awash in oil right now. Refineries are running at 81% which is the break even point. Essentially he was saying supply is fine, beyond fine ( for now) it's pure panic and speculation. There is no reason for a price surge what so ever.

If a Saudi farts, then oil goes up. It's ridiculous really. I wouldn't count on $120 oil unless shit hits the fan over there but I don't think it will get much worse but who knows.

Dave
9 years ago

@dire straits:

Ya, I think the Saudis are bluffing on their production ability.

Dave
9 years ago

@jesse:

Only 2%? That is huge for oil supply because oil is a relatively inelastic good. There isn't much surplus production available to make up for it in the short term. I bet we see $120/barrel before the summer.

dire straits
dire straits
9 years ago

Dave,

I have exactly the same thoughts.

as of now oil in asia is trading around $99 so it went up since closing in NY.

Also, Opec’s spare capacity was of lower quality than Libyan crude. Hard to replace Lybian light crude. BTW I also do not believe that Saudis have any spare capacity. Their talk about making difference is just confidence game.

Best place on meth
Best place on meth
9 years ago

@Dave:

>>>Iran has warships hovering around Libya.<<<

They actually went to Syria, Dave.

jesse
9 years ago

@Dave: Libya is only about 2% of the world's oil production. The spike we're seeing is likely a short term effect as the supply chain reorganizes to compensate, assuming there is a longer-term disruption, as well as risk of political unrest propagating to other middle eastern countries. Political unrest there seems strangely correlated. (Note the king of Saudi Arabia making announcements of new and popular social service spending. Coincidental timing…)

Best place on meth
Best place on meth
9 years ago

@VHB:

For listings we're going to blow away the best ever February by a mile.

Looks like we'll slightly surpass the best ever February for sales as well.

jesse
9 years ago

@M-: "they weren’t actual sales."

Yeah I don't think that went unnoticed by many. I'll let that one slide (if it's true). As a taxpayer who has to pay off public debt, just this once I'll let the ends justify the means. Am I a bad person for having ruthless self-interest? I guess so…

Frankly all these S&M tricks are old hat. If people fall for them, that's their problem. If they were smart enough to religiously read VCI's and other cogent real estate blogs' comments, they'd be well aware of many of the various scams propagated by condo hucksters. To all commenters here who have offered insight into this over the years, thank-you.

Dave
9 years ago

@dire straits:

I think it will be.

The situation in Libya is very uncertain at present and it looks to be a more drawn out situation than the one in Egypt. The fact that the Saudis feel the need to bribe their people to the tune of $36 billion speaks volumes as well. Iran has warships hovering around Libya. Mix it all together and you have a potential clusterfuck situation for oil.

There also isn't a lot of excess supply in the World that can be tapped in the short term. The Saudis claim they can ramp production up, but they have never shown it.

Markets hate uncertainty so up we go.

Bubba
Bubba
9 years ago

Watch how many more developers try to sell their condo projects before Ides of March, when the NEW financing rules come into play.

I'll bet that developers that haven't got their zoning approval by the end of March will claw back big time.

Boobie Rennie has timed his OV sale to lure suckers in…that's obvious.

I think Boobie is like a Phoenix….the " phyrric plunge" looonngggg overdue.