Cancelling new condo purchase after 10 days?

[Mercury]

I have signed an agreement to purchase a new condo, and the 10 day rescission period is long gone and my deposit cheques have been cashed...

Unfortunately I may need to cancel this purchase (not 100% sure either way at this point, I'll be looking at all my options).

Are my deposits gone, as in totally flushed down-the-hole, lost forever, no-chance-in-hell GONE...

...or is there some way to recover the deposit, at least in part?

 

[AKS]

I have signed an agreement to purchase a new condo, and the 10 day rescission period is long gone and my deposit cheques have been cashed...

Unfortunately I may need to cancel this purchase (not 100% sure either way at this point, I'll be looking at all my options).

Are my deposits gone, as in totally flushed down-the-hole, lost forever, no-chance-in-hell GONE...

...or is there some way to recover the deposit, at least in part?

sell off as an assignment

 

[projectcontrol]

Go over your agreement of Purchase & sale with your lawyer to find out if you're toast.

 

[andrejeffry]

I have signed an agreement to purchase a new condo, and the 10 day rescission period is long gone and my deposit cheques have been cashed...

Unfortunately I may need to cancel this purchase (not 100% sure either way at this point, I'll be looking at all my options).

Are my deposits gone, as in totally flushed down-the-hole, lost forever, no-chance-in-hell GONE...

...or is there some way to recover the deposit, at least in part?

In short and most likely, YES. In addition to losing your deposit, the developer has the right to pursue you for the portion or all of the remaining balance if that unit fail to sell in the market.

Though there's always exception, talk to your RE lawyer and then talk to your developer and see if there's something that can be done.

 

[Observer Walt]

You may or may not be able to sell it off as an assignment, as mentioned above. This used to be called "selling the paper", and is less common than it used to be, and indeed is specifically disallowed in some Agreements of Purchase and Sale.

Talk to your lawyer, but don't get your hopes up.

 

[Rocky]

I have signed an agreement to purchase a new condo, and the 10 day rescission period is long gone and my deposit cheques have been cashed...

Unfortunately I may need to cancel this purchase (not 100% sure either way at this point, I'll be looking at all my options).

Are my deposits gone, as in totally flushed down-the-hole, lost forever, no-chance-in-hell GONE...

...or is there some way to recover the deposit, at least in part?

Just curious if you figured it out. Care to share ? would be great info for others in similar situation - thanks

 

[Yossi Kaplan MBA]

assign

Just curious if you figured it out. Care to share ? would be great info for others in similar situation - thanks

chances are developer may not let you send it back; why don't you assign your contract?

 

[Seesus]

chances are developer may not let you send it back; why don't you assign your contract?

Yossi, I might be absolutely wrong - but going by what i am hearing - one cant assign on Monarch Condos - have you ever heard of something similar, Say if the builder/developer does not allow assignments - whats the other best way out with min loss !!

 

[Yossi Kaplan MBA]

when to assign??

Each APS (Agreement of Purchase and Sale) will have a stipulation showing the conditions underwhich one can or cannot assign. Usually builder will allow assignments once certain portion of units sold (say 85% but could be any number).

So look closely in your contracts and find the answer. Also ask your Real-Estate lawyer or your Realtor to have a look at your contract and they will be able to tell you usually right away.

If you are allowed to assign then you need to follow a simple procedure to list the unit. It's best to list it with someone who (1) specializes in assignments and (2) has the marketing power to sell your unit since listing on MLS is not allowed (you cant sell a unit which is not yours - you don;t own the unit at this point b/c there is no deed).

If you cannot assign for any reason you could still ask your assignment specialist to find you a buyer and either (1) ask the builder for special permission or (2) do a simultaneous closing.

The builder will ask for money to assign (500-5,000 most cases), or if you are simul. closing, then you'll have to pay Land Transfer Tax and so would the next buyer.

If you want to see samples of what assignments look like on the market have a look at my sites, the links below, thanks.

 

[mckats]

Hello,

Kind of an odd question. My ten day grace had expired a couple days ago but the builder had not deposited my cheque yet. I have just learned some bad news about my job (may be losing it in the next month or so). I have put a stop order on the cheque however does the builder have any legal right to come after me for the monies???

Thanks

 

[avatarreb]

Hello,

Kind of an odd question. My ten day grace had expired a couple days ago but the builder had not deposited my cheque yet. I have just learned some bad news about my job (may be losing it in the next month or so). I have put a stop order on the cheque however does the builder have any legal right to come after me for the monies???

Thanks

Yes. I would call the developer ASAP and explain your situation.