It’s a good time to be a lawyer

Looks like we’re at that point in the housing cycle again…

Pre-sales buyers (including former PM Kim Campbell) are suing a developer to get out of their pre-sales contract now that the condos they bought are worth less than they agreed to pay.

And of course the developer is suing them right back to enforce the contract.

Campbell put down a $368,000 deposit in October 2007 for her unit, valued at purchase at about $1.8 million, Baynham said. The unit was promised for completion in December 2011, he said, but only completed in mid-January 2013.

The lawsuits come as housing sales in B.C. have dropped by 24 per cent in February 2013 from a year earlier, the B.C. Real Estate Association said last week, while prices have dropped eight per cent.

The downtown Vancouver highrise condo market seems to have been particularly hard hit. According to the blog Vancouver Condo Report, February MLS figures show highrise prices downtown have dropped by about 18 per cent over the past 12 months.

“Nobody would get out of any real-estate transaction if the value of the unit, albeit delivered late, is more than the purchase price,” Baynham said.

“The perception of my clients, and I don’t know if it’s true or not, is that they can’t sell these units for what they purchased them for, and therefore they want their money back.”

Of course, the justification for escaping the contract isn’t that the value of the property has gone down – the buyers claim is that the completion date was delayed without proper notification. The Developer disagrees:

However, the developer’s lawyer, Ken McEwan, said there was no late completion, no failure of disclosure, and Campbell and others have “simply overlooked” terms in the original contract.

“People are perfectly happy in 2007 to sign a contract in the belief that the market will keep going up and they will make money,” McEwan said Saturday in an interview.

“And we say, there was no failure of disclosure, and we are relying on the contract that everyone entered into back then, and allocated the risks.”

McEwan added that the developer is counter-suing Campbell to enforce her purchase deal.

Read the full article in the Province.

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gokou3
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gokou3

“According to the blog Vancouver Condo Report, February MLS figures show highrise prices downtown have dropped by about 18 per cent over the past 12 months.”

I think it’s this pic that’s referenced:
http://www.vancouvercondoreport.ca/MarketTrends/dt%20hr%20trends.png

Looks good to me!

Anonymous
Guest
Anonymous

Here are the flipper suites available right now in the Residences at the Hotel Georgia building. Note 3503 and 3603 are identical 685ft 1 bedroom units 1 floor apart and 3603 is asking $1,288,000 compared to $988,000 for 3503. To be 1 floor higher someone will pay $300K more? Good luck with that. Gotta love all those 8s in the listing prices.

http://www.6717000.com/667howe/listings/

Q
Guest
Q
So taxpayers spent how many hundreds of millions of dollars for the new faregate system in order to reduce fare evasion and now Translink is expecting an INCREASE in transit fare fraud!!! This is because the electronic compasscard system is similar to a credit card. These compass cards can be hacked into similar to a credit card. Fraudsters will be able to make false compass cards just like they can make false credit cards. Another scam might be to use a real compass card and then load it up with funds from a stolen credit card. There are all sorts of ways fraudsters and hackers can compromise this new multi-million dollar compass card/faregate system that was supposed to result in a reduction in fare evasion. From the Vancouver Sun: “Transit police expect to see a jump in fraud cases involving… Read more »
Q
Guest
Q
…Sorry this is off topic, but people who care about taxpayers’ money should care about the wasted millions on the faregate system for skytrain. Wouldn’t you think it would be embarrassing for the officials to admit that even after spenting millions on the faregate system, fare fraud will actually increase? Why do you think Ann Drennan is talking to the media about how the faregates will lead to a bigger fare fraud scam than the U-Pass scam of 2011? Why would she be telling the media about this embarrassing thing??? It’s so transparent what she is doing. She is trying to justify why we still need Transit Cops after the faregates become operational in the fall. Look, public, the Transit Cops that were brought in to counteract fare evasion aren’t being made redundant by faregates? In fact, faregates will create… Read more »
sales in the dumps
Guest
sales in the dumps

Lol good thing those 600 sq ft Hotel Georgia condos have 2 ovens, you gonna have to run a bakery to pay for that 1 million dollar shoebox

Anonymous
Guest
Anonymous

Translink:

1) reduce salary to $50,000 from $100,000+

2) faregates should be installed after ticket purchasing machines, not before hahahahahaha.

3) faregates should be higher. A 60 year old can jump over those with little effort….or walk around them at the edges ;

Many Franks
Guest
Many Franks

Well, folks, we’ve had a good run but it’s time to shut things down.
Little chance of correction in Vancouver real estate market

Anonymous
Guest
Anonymous

when there weren’t fare gates people bitched about that. now that there are fare gates people are bitching about them. the reason this city sucks is because the people in it are morons.

Many Franks
Guest
Many Franks

On the other hand… Canada’s residential real-estate market cools further in February

BMO Capital Markets senior Robert Kavcic noted Vancouver was the “bad apple” in the results.

“Location is key, and Vancouver (or B.C. generally) is the weak neighbourhood with buyers firmly in control,” Kavcic wrote in a report.

Many Franks
Guest
Many Franks
Finally, CAAMP: Major Job Losses From Amortization Change: Dunning concludes that a stunning 190,000 jobs will be lost between 2013-2015 due to the maximum amortization being cut from 30 to 25 years. That’s assuming that the market is tanking due entirely to the reduction in amortization. That fallacy has been tackled elsewhere. Canada’s average home price is currently just 1.8% below its May 2011 high according to CREA data. What’s more, year-over-year prices would have been higher in February if it weren’t for Vancouver weighing down the average. Another “ignore the unsightly bloodstains on that westerly corner of the carpet.” Almost 1 in 5 jobs are housing sector-related and there is no economic driver to replace these jobs. So the debate now becomes, which is the worse evil: major job losses due to mortgage rule tightening, or potentially escalating and… Read more »
Someguy
Guest
Someguy

Scotiabank saying boomers won’t sell, then later in the article say they do sell, just at a slower rate than younger folk. Non-article trying to back the myth of the discretionary seller.

http://www.thestar.com/business/real_estate/2013/03/18/staying_put_baby_boomers_not_selling_skewing_canadas_housing_market.html

Not much of a name...
Member
Not much of a name...

@Many Franks

That’s assuming that the market is tanking due entirely to the reduction in amortization.

Which is known for Vancouver as sales were already starting to drop prior to the announcement of the latest mortgage rule changes.

A question for CAAMP would be what was the effect on the Canadian economy due to the misdirected investment money that was poured into the RE bubble?

Vote Down The Facts
Guest
Vote Down The Facts

“Location is key, and Vancouver (or B.C. generally) is the weak neighbourhood ”

How is Vancouver the weak neighborhood when some places in the interior have an MOI of 30+?

fyi
Guest
fyi

effects in france of new left of center govt rasing taxes

wonder what will happen in BC with NDP coming back

http://www.bloomberg.com/video/what-does-1-7m-get-you-in-paris-not-much-hQFeXJJKSBKlfSRDcU4USw.html

Many Franks
Guest
Many Franks

@Vote Down The Facts: Robert Kavcic lives in Toronto and has never heard of Kelowna. His loss, I suppose?

betamax
Guest
betamax

@11 — That self-serving Scotiabank report is based on historical data, not current trends indicating what’s likely to happen next.

My parents and their generation saved all their lives and are now comfortably retired with no need to sell.

My older siblings and their generation, the boomers, haven’t saved a dime for retirement and have explicitly referred to their house as their retirement plan.

That idiotic Scotiabank report may as well claim that most retirees are likely to own horses as well as houses, because that’s what people did in 1897.

DJB
Guest
DJB

Lets all sue when the market goes up and when the market goes down.

Is this not the opposite of the River Bend Developement in Coquitlam that had presales and the developement could not close due to cost over runs.

The buyers sued as the market was rising, now that the market is falling they are suing again.

http://www.canada.com/vancouversun/news/business/story.html?id=c05f95d2-5da8-41bd-b05c-481fee5bb168

patriotz
Member

“Location is key, and Vancouver (or B.C. generally) is the weak neighbourhood with buyers firmly in control,” Kavcic wrote in a report.

Buyers are always firmly in control in every market. What varies is how smart the buyers are, i.e. how much they are willing to pay.

jesse
Member

“It’s a good time to be a lawyer”

[Campbell] was called to the British Columbia Bar in 1984, and practised law in Vancouver until 1986.

Not always.

Democrass
Guest
Democrass
Here is what Garth said about BC yesterday: Finally, this week brought big news in BC, and a shameless public act. House sales across the province have now cratered by 24% and prices already tumbled more than 8%. An irreplaceable mansion in Victoria just re-listed for 28% less. A leading Van realtor in the best of hoods is telling clients, “Declining market trends will almost certainly continue. The bottom line continues to be that prices are falling. The Real Estate Board of Greater Vancouver’s Westside detached home HPI index is down over 10% from its high point last Spring. By end of summer I expect this to have fallen another 10%.” And now the shame. Amid this gathering real estate storm, the Vancouver Province this week published a full-page story headlined, “Real estate sales finally recovering.” It’s a fraud –… Read more »
Pill
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Pill

“Lets all sue when the market goes up and when the market goes down”

Why not? Life is a war for money.

Burbs Boy
Guest
Burbs Boy

If you read the Vancouver Province for anything financially related… particularly real estate… you deserve to lose all of your money. One of the worst papers in the country.

crashcow
Member

“Nobody has better fundamentals than downtown, for the investor or the homeowner.” –Bob Rennie, Oct 2008

“The downtown market seems to have been particularly hard hit.” – The Province, Mar 2013

Haha. Maybe what Rennie meant was “Nobody gives me better commissions than downtown”

spit
Guest
spit

“If you read the Vancouver Province for anything financially related… particularly real estate… you deserve to lose all of your money. One of the worst papers in the country.”

The Province should just cut out everything but sports and sudoku; then they would have a quality newspaper.

Anonymous
Guest
Anonymous

“Nobody has better fundamentals than downtown, for the investor or the homeowner.” –Bob Rennie, Oct 2008”

That wath before Bobth found outh that Eath Van ith the new Shaughnethy
Right Bobth?

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