Walking away from a Pre Sale Contract
With property prices in the Vancouver Real Estate market dropping, many people who bought into pre-sales as a short term investment in the past 2 years are feeling a sense of regret. It may not be long now for us to start hearing news of people walking away from their pre-sale contracts. If you are thinking about walking away from your pre-sale contract here in Vancouver there are a few things to think about before you do….
Can I legally walk away from my pre-sale contract / deposit?
Seek legal advice 1st, possibly if the developer does not complete on time or if there is general delays.
What happens if I walk away?
Generally, the developer keeps your deposit sells your unit “fire sale” for what they can get and may try and sue you for the difference.
What is the worst that could happen?
I would let and experienced lawyer answer this question, from our understanding they can sue you for damages of up to the entire contract price. However, if this happens on mass the developer will likely be forced to sell off the units at whatever they can get.
Can I get my deposit back?
No, if anyone has ever completely pulled out of a pre-sale and received their deposit back, please share the story with us in the comments. Not including assignments.
Can I just sell my assignment?
Challenging, assignments are becoming available to buyers with complementary $100k deposits, just for taking over the contract and relieving the initial buyer who wishes not to complete.
Advice:
A good realtor should be with you for life. Assist you with your overall decision making and make you aware of all the pros & cons of your decision, even if that means “not making the sale”. Never, buy a pre-sale without having your own realtor by your side working for your best interest and reviewing your overall decision.
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Filed under: Condos, Developments, Downtown Vancouver, Interest Rates, Statistics, Vancouver Blog, concord pacific, foreclosures, tips, vancouver
Pretty useful information guys, great job!
Peter Estephan -
Edmonton MLS