Walking away from Pre-Sale
In today's Vancouver Sun Business section mentioned that there are 6 developers suing some 74 different buyers for not completing the purchase of homes they'd signed contracts to buy. Buyers sometime have the wrong perceiption, thinking as long as they forfeit their deposit, they could walk away from the deal. They are unable to secure a mortgage to complete the purchase based on the current market value which is lower than the time they signed the contract . In reality, this is not the case. As we mentioned in a previous show, developers can sue for damages which is what the buyers contracted for vs what the developers can sell it now for. If any of the buyers are listening & thinking of walking away from the deal, the deal and the developer's lawyer might be following you. Please be prepared to spend a few hundred dollars for legal advice before you make any decision.
