Unity Builders Group files for Creditor Protection

[Cos]

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[Sugarphreak]

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[Zewind]

possibility for cheap homes?

[Sugarphreak]

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[punky]

Originally posted by Sugarphreak
I am in the process of negotiating a deal with a luxury home builder right now, seriously thinking about backing out after reading this...

me too, i have until thursday for our firm date for the deposit. Currently dealing with valmont aspen division.
Anyone else in the same boat?

[Sugarphreak]

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[benyl]

where are you building sugar?

[Sugarphreak]

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[HyperZell]

Originally posted by benyl
where are you building sugar?

Lol I didn't see who you were replying to at first and I thought you were getting fresh with someone.

[MintRacer]

I finalized a deal in currie barraks with greenboro last oct. I went down to the build site and saw numberous trades still working away over the weekend.

[punky]

Originally posted by Sugarphreak


That is Unity Builders project, I'd be backing out of that for sure!



I am dealing with Homes by Avi, not sure what their finances are like, but this has me spooked.

Yeah, we're seriously considering backing out.
The sale rep. was insisting that business would be normal, because valmont has been doing quite well and there shouldn't be any issue. I'm thinking its unnecessary risk.

[TomcoPDR]

Originally posted by Sugarphreak
10% of that owed to trades... that is actually going to hurt some people locally :thumbsdow

:thumbsdow :werd: Hopefully the little guys (1-5 men teams) don't get royally fucked.

[sexualbanana]

Is you fear then, as a buyer, that you're going to put your deposit down and UBG won't be able to finish the project because their creditors will try to collect from them?

[punky]

I worry about them cutting corners because of their own internal crisis. After completion, who knows what kind of support you might get. Also if the company goes down before project finish, we may not get deposit right away, or at all. A little bit paranoid.

[BananaFob]

Originally posted by punky
I worry about them cutting corners because of their own internal crisis. After completion, who knows what kind of support you might get. Also if the company goes down before project finish, we may not get deposit right away, or at all. A little bit paranoid.

Depending on whether the construction lender is allowing deposits to be used as equity or not will determine whether you can get the deposit back. Most of the construction projects that I've seen, purchaser deposits are held in trust at a lawyer.

[MintRacer]

deposits are protected under alberta new home warranty

http://anhwp.com/documents/FAQ/HowIsMyDepositProtected.pdf

[benyl]

Yes, but only to $100,000

Depending on the area, the developer, the builder, you might have to buy the lot, or 50% of the lot, or 20% or etc... that might add up to more than $100K.

[G]

Originally posted by benyl
Yes, but only to $100,000

Depending on the area, the developer, the builder, you might have to buy the lot, or 50% of the lot, or 20% or etc... that might add up to more than $100K.

The warranty really needs to be rewritten. It doesn't protect you unless your house is falling down. My friend bought a house in the late 90s in signal hill and the foundation is like a sieve. He didn't get any warranty help at all for his 1 year old house...he had to sue the builder to get it fixed.

[benyl]

ANHW doesn't cover anything and they do their absolute best not to cover things.

It needs to be abolished as it is completely useless.

[punky]

Sorry to bring up a year old thread.
Anyone else affected by this? Over a year later, UGB/Valmont has sold the entire project to another developer. Now the new developer is asking for extra money to cover the added cost, or they give back your original deposit. UBG screwed a lot of people over, by saying they have approved financing and the project construction will continue.

We have a deposit on one unit, that we're considering walking away with our deposit. Our cost difference isn't much, but others have their's increased $20K+

[zzibradleyizz]

I am affected by this as well as my freind who also purchased at Valmont.

This whole thing has been a nightmare! I have not received any calls yet about my unit, and trying to get information is next to impossible. The 'new developer' is even keeping there name secret so nothing negative can be said towards them because of how they are jackign the prices up on existing contracts.

Going to look into the option of getting a lawyer and going after them if they decide to increase the pricing.

Punky, how do you know that others have had their price increased? I am hoping to get in touch with the majority of the pruchasers and have a lawyer take the case on probono.

You can check out a blog I have created to try and have a central spot for purchasers as well as a Facebook group to allow everyone to give input and discussion:

http://valmontataspenstone.blogspot.ca

[punky]

Hey,

Nice to hear from other people with same issue. They've called us in for a person 1 on 1 chat. From our conversation they said that they're either going to return our deposit, or we have to pay an extra 8k to keep the purchase.
They mentioned that others have their prices up even higher depending on when the unit was purchased. I don't know if that is true or they're just making it sounds like they're the nice guy.

I'm going to follow your blog and see what comes out of it.

[heavyfuel]

Reason #98756453 why I usually tell home builders to pound it when they need my services.

[punky]

Yup, it blows because mortgage rate has gone up, condo fee has gone up, price of the unit has gone up, but we haven't even moved it. UBG is still selling homes with their other divisions, I don't know how these guys are even in business still.
Looks like zzibradleyizz has removed the blog, no word on what happened...

[zzibradleyizz]

Blog has been re-instated, it was closed by blogger, some authentication thing that I never noticed.