Quote:
Originally Posted by bomberjet
I'm going to assume there's some type of an out clause after a certain length of time, maybe 3 years or something.
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Yeah, this is pretty much it. I haven't seen the agreement, but given that benchmarks have been repeatedly moved or gone entirely unmet, I don't doubt there were extrication clauses inherent in the agreement.
The reality is that most agreements crafted are done so with the benefit of the developer in mind given that they're the ones who solicit them. But a lot of pre-sale agreements are not actually offers to purchase; they're letters of intent. In other words, the developer presents you with a binding document that for a cost - the depost - allows you first right to bid on the selected unit once the developer has removed certain conditions precedent to procession. These conditions can include everything from suitable financing to pre-sale targets to final costing; anything really, provided the purchaser agrees. But they also often contain a certain timeframe the conditions must be removed within. If they're not, the developer would be considered in breach of the letter of intent and the agreement would contemplate for this - oftentimes in the form of refunding the deposit or, should the purchaser choose, extension of the agreement. Very 'tough' documents actually give the developer half of the deposit should somebody bail even if delays or other issues are their fault, but I doubt that's the case here with so many units and no overwhelming demand.