*** PLEASE NOTE *** I am not a Lawyer and I am not Giving Legal Advice ***
Thinking of walking away from a pre-sale?
Before you do anything, talk to your lawyer, next talk to your Realtor, and then TALK TO THE DEVELOPER!
Some developers may have programs in place to help those who are having issues completing. The only way to find out is to ask!
The following could happen if you don’t complete:
1) You could get sued by the developer. Even if you win, you still have to pay the costs of defending yourself and we all know lawyers don’t come cheap.
2) You could lose your deposit.
Make sure when you buy something you can pay for it!
I’d love to hear your thoughts on this topic.
Please stabilize the camera, I feel I’m watching The Blair Witch Project
Hi Luc,
I’ll have to work on that!
Boy, I hope I’m not THAT scary!
Thanks,
Mike
Hey Mike… whats your opinion on Onni suing buyers?… here’s the scenario;
(1.) Buyers are backing out of pre-sale contracts at much higher prices.
(2.) Onni is currently dumping un-sold product on the market at 25% – 40% discounts
In your opinion; is Onni causing the pre-sale buyers to suffer extra damages by what seems like the wholesale (possibly wreckless) “dumping” of product … is Onni’s strategy flawed; IE: is their “dumping” of product at massive discounts actually triggering pre-sale cancellations due to the lower sale-precendents the “dumping’ is causing – is a wholesale “dumping” worth a triggering of cancellations and law-suits?.
Hi Billy Bob,
I edited your link, I hope you don’t mind.
I would love to see a link back to your site or blog.
I don’t really have an opinion as I am not familiar with the product Onni is selling off. I only do Vancouver and focus Downtown.
Is this the article about Developers suing people walking away from a pre-sales you are referring to?
In terms of the overall Greater Vancouver Real Estate Market, I don’t think Onni is large enough of a market player to single-handedly bring down prices.
What are your thoughts?
Edit of link okay.
Yes, thats one of the articles relating to the Onni situation
In regards to the Onni situation … I’m thinking more that their aggressive price reductions in their “own developments” may be causing an acceleration of lawsuits within their “own developments”.
By Onni extremely aggresively discounting the “value” of units in their own buildings … and in my opinion; 25 – 40 percent discounts vs. 6 months ago pricing is extreme … they may be causing un-due harm to the buyers of the pre-sale units in their buildings … because, if the units weren’t sold off at an extremely accelerated rate, the re-sale value of the units would likely be higher, IMO… do the pre-sale Buyers have any grounds/cause to counter-sue Onni for damages for resulting from these liquidations of units far below market value?.
I know you not a Lawyer … and its a complicated situation… but your opinion still has value, IMO.
Hi Billy Bob,
I don’t know enough about the previous and present market value of the Onni product to comment in any useful way. Like I said above, I am not familiar enough with suburban product.
I understand your question, but its beyond the scope of my expertise and licensing. I would suggest you ask a lawyer and if need be I can refer you several good options.
That said, these are my thoughts.
1) I doubt Onni or any other developer wants to sue their customers.
A Developer wants their pre-sale buyers to complete on their pre-sale contracts. Litigation is expensive, time consuming, and rarely gives desired results.
2) How do we know what the true market value of these places are?
Are they really 25-40% below market?
I don’t know enough about the product, but if I was interested in buying one of these places, I would have a Realtor who knows the product do an analysis of the real value of the places before I made any decision.
I’d love to hear your thoughts.