When condo construction hits delays, can purchasers back out?

[Daveography]

Condo purchasers in central Edmonton who feel stuck after building construction delays are calling for legislation to hold developers accountable.

"I think there should be some sort of legislation moving forward," said 25-year-old Brennan Belliveau, who in late 2014 put a $60,000 down payment on a unit in a downtown highrise that has not yet been built.

"There should be some sort of opt-out date where if the project isn't done by that date, then you should have the ability to opt out of that contract. It needs to be a fair agreement."

Belliveau had hoped to live in the proposed Jasper House development on 106th Street, just north of Jasper Avenue.

Full Story (CBC Edmonton)

 

[archited]

No, but on the other hand the "at risk" money should be capped.

 

[Daveography]

Proposed Alberta condo legislation would 'bankrupt' industry, developer warns
A high-profile Canadian developer says he'll stop building in Alberta if the government passes a proposed condo regulation that calls for mandatory occupancy dates.

But the head of a condo group that represents owners and consumers said if developers can't work within the proposed regulation, perhaps they shouldn't be building in the province.

The regulation is intended to protect those who buy condos in new developments from long construction delays. Currently, developers do not have to add an occupancy date to the purchase agreement, leaving buyers with little recourse to get their money back if they're unhappy with long delays.

The Alberta government's proposed legislation, expected to be tabled in the spring, would make an occupancy date mandatory for purchase agreements. If the unit is not ready one month after that date, the buyer would have the option to walk away with a refund, or renegotiate with the developer.

Full Story (CBC Edmonton)

 

[archited]

In my opinion this is becoming over-complicated. When one enters into a contract to buy a condominium, one should simply write in the conditions with which they are willing to live. If the developer won't accept the terms thereto, then don't buy the condo.

 

[Daveography]

@archited I tend to agree, "buyer beware" may not always feel like the best policy, but I feel like if it's at least applied consistently and universally (and the developer is complying legally of course), consumers will overall become more informed, learn to do their due diligence, better understand risks, and make better decisions.

Just conjecture, but I feel like with the way owning real estate is played up these days - even glorified thanks to some current reality shows - people may be overestimating their ability to play the market like the pros, and entering into deals on which they're not fully prepared to take the risk.

 

[archited]

"Just conjecture, but I feel like with the way owning real estate is played up these days - even glorified thanks to some current reality shows - people may be overestimating their ability to play the market like the pros, and entering into deals on which they're not fully prepared to take the risk."

I hadn't considered this, but your points are extremely valid @Daveography -- flipping properties, renovating for resale, viewing property as a commodity rather than a home -- these are all ill-conceived notions. Reality TV needs to be put back in its box. I must confess, I have only a glancing knowledge of these programs because I don't watch them.