The presales suing starts again

If you’ve been in Vancouver for a few years you may remember the last time the market took a dip was in 2008.

As prices fell we started to see more and more stories about buyers trying to get out of presales contracts and developers going after buyers for the difference between their deposit and the current market value of the condo.

Well looks like we’re starting to see legal wrangling over presales contracts again, the most recent one is buyers trying to get out of their purchase agreements at the Hotel Georgia.

Falling Vancouver real-estate prices and widespread expectations that they’ll fall further have sparked a rise in lawsuits from condo buyers who want to get out of their presale contracts.

The trend underscores the importance for developers to scrupulously follow the Real Estate Development Marketing Act (REDMA) – because failure to do so can render sales contracts unenforceable and enable buyers to get their deposits back.

“People wouldn’t be looking for the return of their deposits if the units were worth more than or as much as they purchased them for,” Harper Grey LLP partner Bryan Baynham told Business in Vancouver.

The most recent string of lawsuits involves Georgia Properties Partnership’s (GPP) Residences at Hotel Georgia project, which is set to be complete in December – one year later than the developer promised buyers.

Baynham had filed six lawsuits from buyers of units at the Residences at Hotel Georgia as of October 24. He expects to file more.

The project has 156 units. As of September, 96 were sold.

If prices continue to fall in Vancouver you can bet we’ll see more legal action over presales contracts, both from buyers and developers.

 

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removing body hair
7 years ago

each time i used to read smaller content which as well
clear their motive, and that is also happening with this post which I am reading now.

Rusty's Ghost
Rusty's Ghost
7 years ago

@Chabar:

you have been reported for re-education

HAM Solo
HAM Solo
7 years ago

Oct 2011 sales were already in the slow-down zone that lead to the terrible spring selling season. Oct 2012 is worse. Historically, we should be seeing 90% S/L in November. Not going to happen. Correction ongoing.

Chabar
Chabar
7 years ago

@Rusty’s Ghost:

Communist party of China is worse, Iraqis are babies compared to that octopus.

painted turtle
painted turtle
7 years ago
Rusty's Ghost
Rusty's Ghost
7 years ago

@RandomPoster:

are you equating the communist party of china with the brutality of saddamn hussein’s baath party?

for shame

RandomPoster
RandomPoster
7 years ago

@space889: “if the country you are escaping from wants to execute you, Canada can’t deport you back unless and until they can guarantee you wouldn’t be executed or be killed in prison. Which other country in the world has this? ” You rally don’t appreciate how important this is until you see it happening. Back in college (80’s, insert joke here) the Iranian family in the neighbouring apartment had a BIL who was Iraqi (Shia). He had fled to Iran (yes, really) to escape persecution in Iraq, married into the Iranian family, who had then moved to Canada en masss. Good moves so far. However, Immigration Canada (IC) found out his Iranian papers were bogus, and picked him up and were hastily going to deport him back to his country of citizenship, Iraq. Dude was in a world of sh@t… Read more »

VHB
VHB
7 years ago

@Anonymous: where ‘ever’ is defined as ‘since 2001’; yes.

Anonymous
Anonymous
7 years ago

So are these the 2nd worst sales for Oct ever?

mac
mac
7 years ago

@Anonymous: Please share what asking price declines you’re seeing. I see drops that are way smaller than they need to be to find buyers.

VHB
VHB
7 years ago

@mac: That is November in post 71. I’m looking ahead, not behind!

Good Format posted the October numbers downthread.

Anonymous
Anonymous
7 years ago

I’m really starting to notice price changes in west side apartments….took awhile but its starting for sure:). Kinda exciting but not as exciting as it will be 18 months from now!

mac
mac
7 years ago

@VHB: Do you mean these to be October numbers or November? I’m assuming November is a typo? Thnx.

abc123
abc123
7 years ago

listings got killed..sales for Oct high… prices flat to rising… 🙁

VHB
VHB
7 years ago

Here are the November norms.

year	sell	list	sell/list
2001	2614	2697	96.9%
2002	2555	2638	96.9%
2003	3018	2955	102.1%
2004	2486	3234	76.9%
2005	2938	3271	89.8%
2006	2358	3168	74.4%
2007	2883	3377	85.4%
2008	874	3022	28.9%
2009	3083	3653	84.4%
2010	2509	3030	82.8%
2011	2360	3222	73.2%
Mean	2516	3115	80.8%
median	2555	3168	84.9%

BTW, on my PCS the stuff that is selling is going for serious discounts off asking. Stuff like listed at 750 in September; sold for 650. Listed at 980 sold for 820. Maybe those asking prices were just pitched way over market, but I say that price movement is happening.

IamTheChimpman
IamTheChimpman
7 years ago

This market is not going down like a McLovin on a cool summer’s eve.

good-format
good-format
7 years ago

Sales in October
Copied from VHB’s numbers.

The October norms:
year    sell    list   sell/list
2001    2379    3086   77.1%
2002    2866    3535   81.1%
2003    3765    4200   89.6%
2004    2735    3703   73.9%
2005    3099    4041   76.7%
2006    2722    4862   56.0%
2007    3028    4819   62.8%
2008    1364    4867   28.0%
2009    3704    4977   74.4%
2010    2337    3698   63.2%
2011    2314    4364   53.0%
Mean    2756    4196   65.7%
median  2735    4200   74.1%
Veni Vidi Vci
Veni Vidi Vci
7 years ago

@jojomalone: Maintenance costs out east have to include snow removal costs. Suckers.

Here in bc we don’t include rain removal costs in strata fees. We just let it build up in the walls for a few years and then pay a big special assessment to fix it. 😀

Anonymous
Anonymous
7 years ago

How were the sales for Oct against historical norms?

WOWSERS
WOWSERS
7 years ago

18k party next week!!

Bag it and tag it
Bag it and tag it
7 years ago

@space889: I actually noticed the opposite. My formal building was purpose built rental tower at Beach and Thurlow…now I rent in a condo tower at Pacific and Richards. I find people in the condo building much more likely to say hello in the evelvator…but that’s just my experience.

Anonymous
Anonymous
7 years ago

thanks PaulB, good start!

let’s keep these sales below 100

paulb
7 years ago

New Listings 148
Price Changes 99
Sold Listings 74
TI:17719

http://www.paulboenisch.com

IamTheChimpman
IamTheChimpman
7 years ago

http://www.yattermatters.com

prices off a couple of thousand, big frisking deal.

mcLovin I hope you got my memo, let’s get you out of your mouldy basement suite, route suite.

don’t hang out with the losers here, follow me to down the path of milk and honey.

i want you to win for once in your life.