riley
Active Member
My lawyer told me that we should ask for compensation at the time if our final closing.
L Tower Condos (Cityzen, Castlepoint Realty, Fernbrook Homes) - Real Estate -
- Thread starter Jaguar4u
- Start date
My lawyer told me that we should ask for compensation at the time if our final closing.
Sam F
New Member
Thanks Riley for the update. Even a day is a day too many. I will not have a place to live in beyond the date of my occupancy, so if I do get that letter, I will probably camp at the L Tower lobby and probably help with the drywall and paint while I am at it. They can't seem to be doing it on their own and seem to need some help. And yes, compensation from what I know should be applied for after occupancy. Still a bit vague as to the exact details but no doubt we should get the maximum by Tarion. In any case, make sure you keep all your receipts.
Qlee
New Member
since we are on the subject of compensation. I looked in my purchasing agreement, doesn't appear there is a Tarion addendum attached to it, which by law all new construction needs to have it.... is it just me or do u guys not have it either?
Below is for agreements signed before Jun 2008, which is the case for me
http://www.tarion.com/Warranty-Prot...ed-Occupancy-Protection-for-Condominiums.aspx
If the purchase agreement gives a tentative occupancy date, your builder is required to inform you in writing of the confirmed occupancy date no later than 30 days after the roof assembly is completed (or another specific stage of construction as specified in the purchase agreement).
If you are not given notice of the confirmed occupancy date 90 days before the tentative occupancy date, then the tentative date automatically becomes the confirmed date for the purpose of calculating compensation for the delay.
I don't think I was ever given a confirmed occupancy date notice, and 1 of the delay letters was definitely given within 90 day period....
it also says you can apply for compensation within 180 days of occupancy, and if builder doesn't answer to you, you have up to 1 year after final closing to apply for compensation from Tarion. Here is where my lawyer advised to be careful, The builder has option to refund all deposits and in exchange for the unit... so she advised me to apply for compensation AFTER final closing...
Believe the compensation is capped at 5000, you get $100 per day of delay(no receipt required), if you are claiming additional in excess of the $100 a day, then you will require receipt..
That's how i understood it...
Sam F
New Member
Well folks, i couldn't escape it too...yet another delay as expected. Another week bites the dust!
riley
Active Member
Thanks for the info! The only thing that sounds weird to me is, I can't imagine the builder has the right to take back the unit! What would prevent them from doing that all the time at will when it suited them? Our agreements have to count for something, and if they're actually in breach of a law that entitles us to compensation, how could THEIR breach then also empower them to rob our unit from us? I will ask my lawyer too. If that IS a power they have, then the system is screwed up even more than I thought possible.
riley
Active Member
Sorry to hear, but not at all surprised. I'm sure it will affect all of us. I wonder if my new closing date next week will be even further delayed. It's really ridiculous that they're now going week by week, which doesn't allow for reasonable housing alternatives at all for people.
Mark_Mal
New Member
I'm in the same boat as Sam F. I've already given my notice at my current place where I'm renting to prepare for my occupancy on October 22. If they delay my unit I may have to set up my tent next to his! I guess this is where the compensation comes into play. Renting a storage locker for my belongings, moving truck to drop everything off at the locker and likely a hotel to boot + the days off work to move everything twice.
I'm interested to hear more about the clause indicating that the developer can return deposits in exchange for the unit......
I'm interested to hear more about the clause indicating that the developer can return deposits in exchange for the unit......
Xenosblitz
Active Member
I`ve found Schedule X, which states that in event of a delay, at the developer`s sole discretion, they may return your deposit in exchange for the unit back and pay no penalties.
Seems like a really risky maneuver to try to claim compensation!
Mark_Mal
New Member
Ltowerice
New Member
I do not believe builder want to return your deposit in exchange the unit back.
Ltowerice
New Member
Can we as one group to claim compensation?
riley
Active Member
It sounds like their right to return the deposit and take the unit back is if the unit can't be occupied 30 months after the Occupancy date. That's actually ridiculous that there is a clause that allows them to just take back a unit with no consequences whatsoever, and the purchaser loses all the equity built up and just gets back the deposit, because the builder is over 2 years late to deliver. However I don't think that ridiculous clause will apply to us now (but if this drags on for more than a year from this point, its time to start a class action...).
Sam F
New Member
If anything, it is preferable to start a class action now rather than later. You don't want to be in a situation where the condo is registered and handed over to the corporation and then having the condo corporation sue the builder. This will hit the owners where it hurts i.e. their maintenance fees will have to increase to cover the lawsuit. This is the case currently with Maple Leaf Square. I am certain that the extremely short notice that they have given us along with the fact that they have double standard (i.e. the fact that they are willing to let investors rent out the unit during occupancy but have nothing else to offer owners wishing to live there) account for something and cannot be legal for sure. I have spoken to so many people about this and while many have shared similar stories in terms of project delays, none were even remotely close to the way we were treated by Cityzen in terms of the notice of occupancy (or lack of for better word). Everyone I spoke to about this couldn't believe it!
Xenosblitz
Active Member
From a purely profit standpoint (ignoring bad PR), it makes perfect sense for the builder to take back units. Most buyers bought in the mid $500/sf to mid $600/sf range, depending on floor and if they bought early. Units now are selling $700/sf+. The builder can make a large profit if they take back units. That's why I'm saying there is a risk they will tale back units instead of negotiating compensation. The contract is very one sided in their favor.
riley
Active Member
Of COURSE the developers could profit from taking back our units and keeping all the equity accrued for themselves. But they can't just arbitrarily decide to do this, or there would be no protection whatsoever for people who buy preconstrustion. If that were true, they could just use people's deposits as loan money, take back ALL the units, and re-sell the units for a huge profit, and he would just make 'interest' on our deposits. They are horribly once sided, but I don't think they can do that anytime. Again, if you read the take back clause, its only in the case where delivery is delayed for 30 months past the occupancy date. That's a very long and unusual circumstance. That's like the L Tower finishes up next month, but they refuse to let us occupy for over two years.