I bought a pre-sale condo and it’s gone up in value. What if I assign the contract or just buy it and flip it before it’s ever occupied? How about after six months? A year? Is there even a rule?
The BC government is announcing the creation what appears to be yet another make work project to create needless government jobs (doubtless for NDP supporters). It’s called “The Condo and Strata Assignment Integrity Register.” Even the name is odd. It implies that there is a difference between condos and stratas. However, in common parlance, a condo is a strata and vice versa. Furthermore the BC Condominium Property Act (which used… Read More »Canada’s first pre-sale register to crack down on flipping
Kenneth Pazder was recently interviewed by Canadian Lawyer Mag on the topic of condo buyers’ protection. Here is the full article: A series of condo cancellations and failures across the country have pre-construction investors crying foul. And while there are some protections in the ever-evolving condominium legislation, the rules vary from province to province and they don’t always apply to the principle investment and any lost interest or opportunities.… Read More »Protecting condo buyers
‘In court reports… they’d found some of the [pre-sale] units were pre-sold more than once – and as many as four times in some cases.’ How risky is buying a pre-sale condo? ‘Future homebuyers considering a pre-sale property might be surprised to find out what’s in the fine print. They’re drawn in by glitzy showrooms that allow them to choose their unit and finishes, and many sign contracts without really… Read More »Police investigating pre-sale development; condo buyers out hundreds of thousands
With respect to the recent article in the Vancouver Sun regarding pre-sale assignments some clarification is in order. The media has recently coined the term “shadow flipping,” to describe the practice of assigning pre-sale contracts in BC. This practice has been going on in BC for over 15 years. Firstly, there is nothing “shadowy” (or illegal for that matter) about assigning the contract of purchase before the completion date comes… Read More »Presale Vancouver: Understanding the practice of flipping pre-sale condo contracts
As I mentioned in previous blogs, there are at least 7 major risks associated with buying a pre-sale strata property in BC, summarized as follows: 1. Market Value (can go down by the time the project is completed) 2. Interest Rate (can go up by the time the project is completed) 3. Financing (rate holds can be lost by the time the project is completed, buyer may no longer qualify… Read More »“What do you mean, the price went up?” Risks of buying a pre-sale strata
Fed up with the one-sided nature of pre-sale contracts, a group of disgruntled Langara West pre-sale buyers are challenging the status quo. This is yet another cautionary tale about the risks involved in buying a pre-sale condo. In this instance the developer did not complete the project and sought to return the buyers’ deposits (plus 50%) in lieu of damages. The case involves a novel legal argument put forth by the… Read More »Enough is enough! Pre-sale condo buyers seek justice
A pre-sale condominium is a townhouse or apartment that is available for purchase prior to it’s construction or before it is move-in ready. Buying a Pre-Sale has many benefits: Pre-sale homes come with extensive warranty protection; you don’t start paying the mortgage until completion of the building, thereby getting the chance to potentially save for the balance of the down payment; and if prices rise over time (which they have done… Read More »What are the 7 risks of buying a Pre-Sale Condo?