Friday, April 20, 2018

Developer offers pre-sale buyers unusual options for stalled New Westminster condo project

The developer of a New Westminster project is giving pre-sale condo buyers a few weeks to make a choice among unusual options that speak to the curveballs facing both builder and buyer in a market environment of rapidly rising prices for condominiums.

Vancouver-based Jago Development Inc. told holders of the pre-sale contracts for the 55 one-, two- and three-bedroom units at Westbourne Residences — which sold out in mid-2016, but where construction has been delayed — that if they want to keep their contracts going, they must agree to a new price that is 15 per cent more.

If not, they can “choose” to terminate their sales contracts and get their down payment returned, plus an additional 50 per cent.

Or, in the most novel part of the offer, they can also opt to get their down payment back, and then wait for the developer to eventually sell the unit to a new buyer and then receive 40 per cent of the difference between that new sale and what they originally paid for the condo on pre-sale, minus taxes, fees and commissions.

Late last year, Vivagrand Developments cancelled its Langara West condo project in the Cambie Street corridor and said it would instead return down payments and sell the land, which had surged in raw value, along with condo prices in the area. It cited rising construction costs and loss of financing. The move prompted pre-sale buyers there to take legal action.

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