PDA

View Full Version : Trouble With Townhome Builder



94boosted
12-06-2013, 11:56 AM
I could really use some advice: My mom purchased a brand new townhome in Bankview back in September directly from the builders realtor (she didn’t have her own realtor) before the units were completely finished (~90% at the time). Her original possession date in the contract was October 28th. Well here we are in December and she still hasn’t taken possession. It’s been excuse, after excuse, after excuse from the builder, the builders realtor (who is also my moms realtor) and the builders lawyer. The units are nearly complete now (appliances still to go in, some lighting, some paint...) but regardless they’re not fully complete and they are not giving anybody possession (there are about ~10 units and ~8 are sold). The occupancy permits have been issued by the City of Calgary on November 25th so it’s really a matter of the builder arranging for the appliances to be put in and sending in some trades for the final touches. At this point she doesn’t know what to do, she’s had her lawyer contact the builders lawyer who gave her a firm date that she could take possession of in writing.... well that day came and went, and now my mom’s lawyer can’t even get any sort of a response from the builders lawyer.

This whole thing is starting to smell like a bankruptcy just waiting to happen, if the builder doesn’t have the money to complete the remaining finishing touches on a multi-million dollar project so they can start handing over the keys and getting paid it can’t be a good sign of the builders financial status right? What would her best option be now, try to sue to recover her deposit (~25K) or wait it out and hope the builder gets their s**t together? Any other suggestions?

94boosted
12-06-2013, 12:05 PM
I also thought I would add that some of the first people to buy units from this builder were originally told they could expect to take possession as early May. I realize that the flood would have obviously caused some major trades shortages but they are now ~7 months late.

roopi
12-06-2013, 12:08 PM
Her deposit is covered under ANHWP:

https://www.anhwp.com/hbTemplates/ContentTemplate.aspx?Page=DepositProtection

94boosted
12-06-2013, 12:21 PM
Originally posted by roopi
Her deposit is covered under ANHWP:

https://www.anhwp.com/hbTemplates/ContentTemplate.aspx?Page=DepositProtection

What are the conditions for getting out of a deal and getting your deposit back under the Alberta New Home Warranty? Wouldn't those be as specifically outlined in her purchase agreement with the builder?

roopi
12-06-2013, 12:26 PM
Originally posted by 94boosted


What are the conditions for getting out of a deal and getting your deposit back under the Alberta New Home Warranty? Wouldn't those be as specifically outlined in her purchase agreement with the builder?

I'm not sure about specifics like that. I posted that information if your concern is that they are going into bankruptcy.

When the lawyer provided a firm possession date what were the conditions/penalties if they were not met? Did they say they would compensate your mother in anyway? If so has anything happened with that?

When you say your lawyer is receiving no response from the builder's lawyer what did your lawyer advise as the next step? Did he just say I received no response and that's that? If so find a new lawyer.

To me it doesn't sound like bankruptcy. It just sounds like poorly managed. If all the have occupancy permits they would give you possession so they can receive the rest of the funds. Maybe they are just waiting for the appliances to arrive? :dunno:

Either way I'd be on the phone with the sales contact, realtor, someone getting some information on what's going on since the possession date has come and gone.

roopi
12-06-2013, 12:30 PM
If no one wants to talk to you call the realtor and show interest in buying one of the 2 unsold units.

94boosted
12-06-2013, 12:37 PM
Originally posted by roopi


I'm not sure about specifics like that. I posted that information if your concern is that they are going into bankruptcy.

When the lawyer provided a firm possession date what were the conditions/penalties if they were not met? Did they say they would compensate your mother in anyway? If so has anything happened with that?

When you say your lawyer is receiving no response from the builder's lawyer what did your lawyer advise as the next step? Did he just say I received no response and that's that? If so find a new lawyer.

To me it doesn't sound like bankruptcy. It just sounds like poorly managed. If all the have occupancy permits they would give you possession so they can receive the rest of the funds. Maybe they are just waiting for the appliances to arrive? :dunno:

Either way I'd be on the phone with the sales contact, realtor, someone getting some information on what's going on since the possession date has come and gone.

Some good advice, thanks roopi.

So basically, if the builder does happen to go into bankruptcy her deposit should be protected by the Alberta New Home Warranty correct?

The builders lawyer did not provide any conditions/penalties regarding what would happen if the date was not met.

My mom's lawyer has supposedly been trying to get information from the builders lawyer but the builders lawyer is unresponsive (~1 week).

They first told my mom that appliances would be in well over a month ago and have proceeded to slip that date multiple times, I don't think it's a matter of just waiting for them to arrive.

94boosted
12-06-2013, 12:39 PM
Originally posted by roopi
If no one wants to talk to you call the realtor and show interest in buying one of the 2 unsold units.

I like this :thumbsup:

If we can't get anything firm on paper we may try this.

triplep
12-06-2013, 12:50 PM
I wonder if they are trying to get your mom to request her refund back?

I mean she purchased the townhome before the flood and maybe she got a sick deal on it. Now with the flood they see an opportunity to make an additional 100k per unit? so they are trying to piss your mom off enough so that she takes her deposit back and walks away from the deal so they can sell it to someone else at a higher price?

Just a thought?

94boosted
12-06-2013, 01:17 PM
^ No she purchased after the flood (September) there are others that purchased before the flood for less.

roopi
12-06-2013, 01:28 PM
Originally posted by 94boosted


So basically, if the builder does happen to go into bankruptcy her deposit should be protected by the Alberta New Home Warranty correct?


Yes. There is nothing to worry about with the deposit. It probably wouldn't even get to this point. Normally when a company goes bankrupt or can't finish a project another builder will step in and buy the project and complete it.