Judgment on Riverbend Developments lawsuit out yesterday. Lawyer for the would-be-owners claims victory of sorts as apparently the difference between the pre-sale price and the finished sale price will be held in trust until a later date and another decision.
Anyway we look at this it stinks. After reviewing all the media reports we could find, we think we'll likely would never take the risk of purchasing a pre-sale. The contract is one way. As a buyer you can't walk away from it. Apparently the seller can. The system is complex; they're are a lot of competing interests involved: developer, financier, tradespeople etc. But it would appear that the least important interest is that of the would-be-owners. I can't help but wonder if this would be the case in a different market climate?
Mid-month market watch to come later today.
2 comments:
Hi HHV,
My understanding is that you can walk away from a presale with no penalty except having tied up your deposit in the intervening x years.
It is really just a way of ensuring the banks that there are enough serious potential buyers. The deposits are held in escrow.
Please correct me if I'm wrong, but we looked into this and this is what we figured.
you're correct... all said though, if you do walk away after having tied up $25K or so for a year or more with nothing more than the deposit, what's to stop developers from continuing to delay and hoping you get tired of waiting so they make the profits?
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