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Condo buyers are bumping into the realities of the real estate market - or is it a new level of greed asks an unhappy customer

By Pepper Parr

April 4th, 2022

BURLINGTON, ON

 

 

Prices for detached single family houses have soared during the past year.  Homes have sold for 49% above the asking.

The folks in the condo market are now experiencing the same problem – with the difference being that  people who paid deposits are now finding the price of the condo they have yet to take possession of has gone up

Construction delays and price increases, according to the developers, are the problem in the condo world theses days.

The Gallery, a 26 storey tower currently under construction across the street from city hall is behind schedule.

Folks who have purchased in the Carnicelli Gallery going up opposite city hall have been told that it will be something in the order of eight to ten months more before they can call the moving van.  They had expected to move in sometime in November

A couple of blocks to the west people who have purchased in the Nautique have been told that the original deal isn’t on anymore,.

The ADI Group development determined that construction costs make it impossible for them to build at the original selling price.

The Nautique has been plagued with problems from the day they filed their application to build. Readers of the Gazette have followed this amazing story.

People who had sales agreements will have their money returned and be paid interest on the deposit or they can pony up an additional 50 to 60% and wait until the building is ready for occupancy.

One Gazette reader said there was a weasel clause in the sales contract that let ADI take the action they took.

ADI has access to exceptional legal talent – buyers are going to have to retain smart talent of their own.  The lawyer on the client side should have seen the clause in the agreement and advised their client as to what was possible.

Glenn Gillespie, an about to retire fire fighter expected be in the unit be bought in 2015.

The unit he purchased for $508 thousand dollars seven years ago is going to require an additional $300,000  if he want to take ownership when the construction is complete.

Gillespie said he had a choice: either pay the extra money for a condo that doesn’t exist yet or get his $126,000 deposit back with 6 percent interest and give up his unit.

Gillespie told CHCH news that “he thinks the developers want the owners to take their money and leave so that they can charge a higher price for the condos. He contacted a lawyer who says 14 other owners from the same building are also reviewing their legal options.”

 

 

 

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3 comments to Condo buyers are bumping into the realities of the real estate market – or is it a new level of greed asks an unhappy customer

  • perryb

    Wow, 6% interest will sure make up for a 50%+ increase in the value of the property that people contracted for. ADI strikes again, and will probably finally walk away from the hole in the ground on the lakeshore. Can they be trusted to complete the units they are selling at Aldershot GO?

  • Carol Victor

    Where is the LPAT when these developers fight
    municipalities to build these condos and then leave customers in the lurch….their integrity or lack thereof should be noted.

  • JUDITH CHRISTIE

    Weasel Clause??? sounds slippery. I thought once a downpayment was made,,buyer was all set!!

    What happened??