I put a $500 deposit down early last year for a Pointe of View Condo,
at the time they were guaging interest. The point was that once they had sold enough units, I would have the option of purchasing it for a pre-agreed upon price.
Finally this April, I recieved the letter saying they were going to go ahead with the construction, so I put the 5% deposit down, signed the papers,
secured a mortgage, went to the design center and the whole bit.
Now, 5 months later, I recieve another letter, saying that in accordance with Clause 10 of the papers you signed:
"Vendor may at its option cancel and terminate this agreement in the event Vendor fails to sell enough units so as to obtain an agreement from any construction mortgage lender as may be financing the Project from time to time provide partial discharge of its mortgage on transfer to purchaser(s). The Purchaser(s) will recieve a full refund from Vendor for all monies paid, should vendor terminate this agreement"
It says in the letter even though they sold out the units, they can't secure a mortgage lender at the price they're selling them, therefore they have to hike up the price by $35K.
Does anybody know if this is legal, and if I can do anything about it?
BTW, I'm definitely going to speak to a lawyer, but just wanted to get some opinions, and see if this has happened/happening to anyone else.
Thanks in Advance.