Any Canadian Real Estate lawyers here?

[MoneyDoc]

Hey Guys,

Are there any Canadian Real Estate lawyers on this forum?

Having an issue with a preconstruction condo and would like some advice.

This gist of it is that I purchased a unit. The builder accepted my offer, signed the papers and everything, and closed the deal. However, they did all this without looking at my preapproval first. I paid 2 deposits already, next one coming up in July. It seems like I can't get a preapproval for the purchase amount (some unexpected credit hits)... I sent them a request to let me back out (3 months have passed) as I can't get a preapproval and to return my deposits. Still waiting to hear back.

This is not your typical case of "I can't pay the deposits" or "buyers remorse" after the 10 day grace period.

Was just looking for some advice or what my options are.

-MoneyDoc

 

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[Michael Burgess]

Not a lawyer myself, but I work in real estate throughout Ontario a lot and happy to chime in.

With your Agreement of Purchase and Sale, was your offer *conditional* on getting appropriate financing? If so, did you waive your condition because you were pre-approved, and under the impression you could get financing?

Would you be open to working with alternative lenders, such as credit unions, or private lenders? I can almost certainly help you get a mortgage, but the worse your personal position (credit score, registered debts, down payment, tax-assessed income, etc) the worse the terms and interest rate on your potential mortgage would be.

I'd be happy to help as much as I can (either here on the thread, or via PM) before you start paying for lawyers, but I do have a great lawyer I can recommend you to if you need to go down that path. Cheers,

Michael

 

[MoneyDoc]

Not a lawyer myself, but I work in real estate throughout Ontario a lot and happy to chime in.

With your Agreement of Purchase and Sale, was your offer *conditional* on getting appropriate financing? If so, did you waive your condition because you were pre-approved, and under the impression you could get financing?

Would you be open to working with alternative lenders, such as credit unions, or private lenders? I can almost certainly help you get a mortgage, but the worse your personal position (credit score, registered debts, down payment, tax-assessed income, etc) the worse the terms and interest rate on your potential mortgage would be.

I'd be happy to help as much as I can (either here on the thread, or via PM) before you start paying for lawyers, but I do have a great lawyer I can recommend you to if you need to go down that path. Cheers,

Michael

Thanks Michael!

I did not put any conditions on my end nor did they have any conditions. However, on their purchase sheet they mentioned a list of items required and the preapproval is one of them... they only asked me for one after 3 months or so after I paid around $61k in deposits. I should've been able to get the pre-approval, but I got hit with some unexpected credit issues. It's ridiculous actually because the building is being completed in 4-5 years... so occupancy is 2025 lol.

Anyways, I'm waiting to see what they say. I kinda put it on them that they should've asked me for a preapproval before signing off on everything.

If they don't accept my request, then I'll probably need to take another route. To be quite honest, I personally want out of the deal too even though it's an amazing suite and amazing location (right beside sick kids).

 

[Michael Burgess]

Something I put into my contracts is the right to assign the purchase to any person or corporation before closing. Do you know if there was a clause in your agreement for this? If so, if you can find another investor / wannabe homeowner to take over your contract, you should be able to get all of your deposit money out (or get paid even more, actually).

I'm not super familiar with new builds, as they're a different beast than resale, but I'm happy to help you work through this as best I can.

Even if you can't get a preapproval right now, you shouldn't actually need one - as long as your deposits are being met on schedule as agreed to, I assume they won't receive the rest of their funds until construction is complete and the transaction is closed?

If you haven't already, it's probably worth talking to a reputable mortgage broker or two - have them shop around various institutions ASAP to get you a preapproval, and then use that as you see fit.

Sorry for a bit of a ramble, just trying to see this problem from a few angles.

 

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