Bad timing exacts a heavy price

KERRY GOLD Globe and Mail

February 19, 2009

VANCOUVER - The online classifieds for Vancouver real estate reveal the signs of a looming crisis in the city's once-thriving condo market.

There is ad upon ad placed by presale condo owners who are desperately trying to unload their purchases, with some even willing to walk away from their deposits.

An ad by a realtor announces that developer Onni Development is offering a 40-per-cent discount on homes

"Most of these homes have already been sold, but the purchasers were unable to complete on them," says the ad.

The realtor asks for a 5-per-cent deposit and offers a cheque for $1,000 upon completion.

Nobody could have predicted the sudden economic downturn, but it means many presale buyers who purchased at the peak of the market no longer have the financing to close the deals.

It means buyers who have defaulted on their contracts, and many more who fear they will unless the market picks up. Developers, who sold in good faith and have signed contracts, are threatening to sue buyers who attempt to back out. For many, it has become a disaster that will be played out in the courts....

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