Brampton UPtowns at Heart Lake | ?m | 4s | VANDYK
- Thread starter gquest
- Start date
sandhugo
New Member
Primary question is - Does Uptown 'units' fall under category - Freehold Homes or Condominium Units ? Tarion has limits over deposit protection. For Condominium Units only 20k max deposit is protected where as 10% of purchase price upto 100k is protection for freehold homes only.
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from - https://www.tarion.com/coverage-before-you-close ( Deposit protection)
Deposit Protection for Freehold Homes
For purchase agreements signed on or after January 1, 2018, deposit coverage depends on the purchase price of the home:
Condominium unit deposits must be placed in trust under the provisions of the Condominium Act. If you terminate a purchase agreement, you must return the purchaser’s deposit in full within 10 days. Tarion provides deposit protection of up to $20,000 plus a limited amount of interest that has accrued.
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Combining this information with the 11 Oct Notice by KSV to all Uptown Purchasers ( last page where they mentioned Trisura for ECDI, and clearly mentioned 'Condominium Deposit' ), as per KSV's understanding , the units are categorised as 'Condominiums' whereby 20K will be refundable by Tarion and remaining by Trisura. So IMO, existence and mention of Trisura Gurantee Insurance Company becomes even more important for full refund of the deposit.
and as somebody mentioned SRLAW claims that deposits were in fact transferred to KSV. This seems like is true in wake of ECDI in play . if you read following :
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In Ontario, Excess Condominium Deposit Insurance or “ECDI” allows developers access to purchasers’ deposits that would otherwise be tied up in a trust account. Developers who utilize an ECDI policy end up saving money as the deposit access is typically a much cheaper source of financing than traditional bank financing.
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Seems like KSV tied up with Trisura this year to get their hands on the deposits.
Trying to join the pieces of this puzzle !.
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from - https://www.tarion.com/coverage-before-you-close ( Deposit protection)
Deposit Protection for Freehold Homes
For purchase agreements signed on or after January 1, 2018, deposit coverage depends on the purchase price of the home:
- If the price of the home is $600,000 or less, the purchaser’s deposit is protected for up to $60,000.
- If the price of the home exceeds $600,000, deposit protection equals 10% of the purchase price up to a maximum of $100,000.
Condominium unit deposits must be placed in trust under the provisions of the Condominium Act. If you terminate a purchase agreement, you must return the purchaser’s deposit in full within 10 days. Tarion provides deposit protection of up to $20,000 plus a limited amount of interest that has accrued.
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Combining this information with the 11 Oct Notice by KSV to all Uptown Purchasers ( last page where they mentioned Trisura for ECDI, and clearly mentioned 'Condominium Deposit' ), as per KSV's understanding , the units are categorised as 'Condominiums' whereby 20K will be refundable by Tarion and remaining by Trisura. So IMO, existence and mention of Trisura Gurantee Insurance Company becomes even more important for full refund of the deposit.
and as somebody mentioned SRLAW claims that deposits were in fact transferred to KSV. This seems like is true in wake of ECDI in play . if you read following :
--
In Ontario, Excess Condominium Deposit Insurance or “ECDI” allows developers access to purchasers’ deposits that would otherwise be tied up in a trust account. Developers who utilize an ECDI policy end up saving money as the deposit access is typically a much cheaper source of financing than traditional bank financing.
---
Seems like KSV tied up with Trisura this year to get their hands on the deposits.
Trying to join the pieces of this puzzle !.
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rbt
Senior Member
Yes, that is what your amendment to the AP&S would do. The developer gets a slightly higher unit value (helps when asking for the construction loan) and you get Tarion protection for the upgrades deposit provided your within their restrictions.
If you ever buy new again, during your 10 day AP&S review with your lawyer ask them for options to derisk the purchase. They should have suggestions for amendments which they can prepare and fax to the developer for inclusion in your final agreement.
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UptownGirl
New Member
Uptowns falls under Condominium Units...Tarion has a page specifically for Vandyk
Vandyk Group of Companies | Tarion.com
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jbaa1
Active Member
How does interest work, if indeed interest is owed?
Is it a percent on the total deposit ? And what percent ?
Is it a percent on the total deposit ? And what percent ?
Uptowns falls under Condominium Units...Tarion has a page specifically for Vandyk
Vandyk Group of Companies | Tarion.com
www.tarion.com
UptownGirl
New Member
No idea...the KSV lawyer told the judge that they should be reaching out to us by the end of the week and details of our decision (whether you decide to reject the amendment or accept it) could be discussed then...So I guess we're gonna have to wait until they reach out.
Deanfeb
Active Member
So Meg replied to my message regarding deposits and not enough secured APS….,
As advised to the Court at the hearing on October 15, 2024, in the event that there are not enough secured APSs to get construction financing, KSV will be back to the Court to seek further direction or provide further recommendations.
The deposits were paid into trust to SR Law, but a portion of the deposits were subsequently released to Vandyk. Developers can get deposits released if they arrange for insurance to protect those deposits in the event that the deposits need to be returned for any reason. Vandyk had arranged for deposit insurance ($20k insured by Tarion and the rest insured by an excess condominium deposit insurance policy provided by Trisura). Accordingly, even though deposits were released, they are fully secured by insurance. Whatever is left of the original deposits is still held in trust by SR Law and has not been released to KSV. In terms of the return of the deposits, a deposit return protocol will need to be established between KSV, Trisura, and Tarion. Once the Court approves that protocol, homebuyers will be provided instructions on how to file a claim for their deposit back.
As advised to the Court at the hearing on October 15, 2024, in the event that there are not enough secured APSs to get construction financing, KSV will be back to the Court to seek further direction or provide further recommendations.
The deposits were paid into trust to SR Law, but a portion of the deposits were subsequently released to Vandyk. Developers can get deposits released if they arrange for insurance to protect those deposits in the event that the deposits need to be returned for any reason. Vandyk had arranged for deposit insurance ($20k insured by Tarion and the rest insured by an excess condominium deposit insurance policy provided by Trisura). Accordingly, even though deposits were released, they are fully secured by insurance. Whatever is left of the original deposits is still held in trust by SR Law and has not been released to KSV. In terms of the return of the deposits, a deposit return protocol will need to be established between KSV, Trisura, and Tarion. Once the Court approves that protocol, homebuyers will be provided instructions on how to file a claim for their deposit back.
jbaa1
Active Member
Hopefully it’s fast and streamlined !
Deanfeb
Active Member
Any questions you have .,email Meg
jbaa1
Active Member
Just :
When deposit back?
From where deposit back, and how much per?
And interest?
Will have to wait lol.
I don’t know how interest works with these things , but say it’s like 3% per annum. That’s a lot of money. And considering they will be making much more money and we are foregoing our appreciation, I think it’s fair the court forces them to pay interest.
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rbt
Senior Member
Interest is defined by the Condo Act, and is the overnight Bank Rate - 2%; or 0% if negative. Eyeballing the Bank of Canada rates (linked below), it looks like you've earned roughly 5% over your entire deposit period. Subtract 2% from each period and run through excel if you want to calculate the exact value to date.
Interest applies if you follow through on your purchase too: You get a credit for the deposit + interest toward the purchase
Bank of Canada Interest Rate 1935-2024 | WOWA.ca
Check today's Bank of Canada interest rate and expected rate over the next few years. See how the rate has changed in the last 89 years and what caused it to change so fast in 2022-2024.
wowa.ca
Incidentally, the Condo Act was modified for agreements signed in 2023 or later. For those you get the Policy Rate which is the Bank Rate - 0.25% but I doubt if that applies to any Uptown purchaser.
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UptownGirl
New Member
Today is the day the KSV lawyers told the judge that they would reach out to us by...