Getting out of a contract....

[first-time-buyer]

Hey guys,

Does anyone have any advice on how to get out of a condo contract and get the full deposit back.
I purchased a year ago from a company whose project is only at 20% and slipping and has not made a sale in a full year (will not name the company for discretion purposes).

Any help would be appreciated.

[Buggys]

I can describe 2 options for your situation, though there may be more out there.... It's hard to describe how either of these would work in detail without seeing specific documents or being a lawyer.

1) This is highly unlikely, especially since it's been a year now.... Read the terms and conditions of your agreement of purchase and sale carefully if you haven't already. Are there terms and/or conditions they haven't met or will not meet? There is a small chance you can find a reason to get the contract with them rescinded.

2) Find a buyer for the condo that you had already "bought". It would be a hard sell to explain to potential buyers why you're selling. Also, you might have to do so at a loss given changing market conditions and competition from the condo sales company. Your buyer would basically put his/her name on the agreement of purchase and sale instead of you, with permission from the condo sales company.

[first-time-buyer]

Originally Posted by Buggys

I can describe 2 options for your situation, though there may be more out there.... It's hard to describe how either of these would work in detail without seeing specific documents or being a lawyer.

1) This is highly unlikely, especially since it's been a year now.... Read the terms and conditions of your agreement of purchase and sale carefully if you haven't already. Are there terms and/or conditions they haven't met or will not meet? There is a small chance you can find a reason to get the contract with them rescinded.

2) Find a buyer for the condo that you had already "bought". It would be a hard sell to explain to potential buyers why you're selling. Also, you might have to do so at a loss given changing market conditions and competition from the condo sales company. Your buyer would basically put his/her name on the agreement of purchase and sale instead of you, with permission from the condo sales company.

I also found the link below:

http://www.sse.gov.on.ca/mcs/en/Pages/condo_new.aspx

It states that "Your Builder’s Obligations

The Condominium Act also protects you by imposing certain obligations on condo builders.

Builders must take all reasonable steps to finish the condo project on time. You may have a right to compensation if your condo closing is unreasonably delayed.
The builder must register the legal documents necessary to set up the condo corporation without delay."

Do you think if the builder is not advertising and is letting other contracts terminate to switch to other projects that they are unreasonably delaying the project?

[kwoldtimer]

Originally Posted by first-time-buyer

I also found the link below:

http://www.sse.gov.on.ca/mcs/en/Pages/condo_new.aspx

It states that "Your Builder’s Obligations

The Condominium Act also protects you by imposing certain obligations on condo builders.

Builders must take all reasonable steps to finish the condo project on time. You may have a right to compensation if your condo closing is unreasonably delayed.
The builder must register the legal documents necessary to set up the condo corporation without delay."

Do you think if the builder is not advertising and is letting other contracts terminate to switch to other projects that they are unreasonably delaying the project?

You should consult the lawyer you used for the initial purchase. In theory, he or she would be most familiar with your purchase agreement.