Quote:
Originally Posted by GregHickman
I heard some of the people who had put forth money for the project were having quite a hard time getting it back.
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Implied in your comment is that the person asking for the money back has the right to get it back.
For the record, we do not have access to nor control the purchaser's deposits. All Purchasers' deposits are held in trust by a law firm and invested in an interest bearing account for the benefit of the PURCHASER, not for us.
It's held in trust to ensure that the Purchaser will honor his commitment to buy the condo.
We obligated ourselves to build the purchaser a condo and we agreed to wait until we give the buyer the keys to their condo before we get the deposit and the balance of the purchase price.
The Purchaser in turn agreed to buy the condo and as security for his promise to buy it, he agreed to give our law firm a deposit that would be forfeited if he changed his mind about buying it.
That deposit-and the buyer's promise to pay the balance of the purchase price-is then assigned by the developer to the lender that puts up the money to build the project.At that stage, we have a third party that also has rights under that contract.
We can't say to the law firm: "we've changed our mind about building the condo but give us the Purchaser's money,anyway", anymore than the condo buyer can say to the law firm: "we've changed our mind about buying the condo so give us back our deposit."
So,the next time you hear about someone that's having "a hard time" getting their money back, I would appreciate it if you ask them why they want their money back so that you can decide for yourself whether they are having a hard time getting it back because they are trying to break their contract or we are.
Please don't always assume that the complainant must be right simply because he is complaining.Get the facts and then decide who is giving who a hard time.
Again, we don't have their money nor will we ever have access to a condo buyer's money until the day we give him the keys to his condo.The only right we have, is the right to tell the law firm that we object to the release of a deposit because its release is a violation of the contract.