Pre-sale condo buyer skeptical about down payment as Coquitlam building stalls for three years
The unforeseen delays, caused by a new layer of B.C. red tape and months of COVID shutdowns, shows how developers’ plans can be disrupted between the signing of a pre-sales agreement to the actual move-in date
Article content
A Ladner couple who put down a deposit on a studio unit in an unbuilt Coquitlam condo tower just before the COVID-19 pandemic are worried about their investment as delays push back construction.
Gerry Evans and his wife, Lillian Liu, were told when they signed the pre-sale contract for Horizon 21, a 21-storey building with close to 150 units, in February 2020 that the tower would be complete in early 2023.
But construction hasn’t started yet and the building that still occupies the site at Blue Mountain Street and Lougheed Highway hasn’t been torn down.
“I know these things happen, I did a pre-sale before,” said Evans, who has so far put down about 10 per cent of the cost of the studio unit, about $40,000. “But I have never seen these kinds of delays. If there’s potential for the deal not to go through to completion, I’m not sure if I want to do the next payment and be the dumb guy who loses his money.”
The unforeseen delays, caused by a new layer of B.C. red tape and months of COVID shutdowns, is an example of how developers’ plans can be disrupted between the time pre-sales agreements are signed and the actual move-in date.
The main issue causing the delay is a new site disclosure statement that B.C.’s Environment Ministry invoked in 2021 as a screening-tool requirement for potentially hazardous building sites. That issue has been resolved, Andrew Wong, a spokesman for the developer, Centred Developments, said Wednesday.
Wong said the developer couldn’t get a building permit from the City of Coquitlam until the site disclosure statement was approved. The developer submitted it in February 2021 and it was approved in late June or early July.
Wong said that means the demolition of the building can go ahead.
-
Douglas Todd: Metro Vancouver has 650 homes worth $10 million+. That's 13 times higher than 2010 - They do exist: B.C. waterfront properties for less than $500,000
-
Dan Fumano: City of Vancouver touts record housing approvals, but completions lag badly -
Late bank appraisal proves costly for first-time buyer after Cloverdale apartment drops in value
He couldn’t disclose when ground would be broken on the mixed-use tower with 142 condo units, four retail units and five second-floor office units as well as a three-storey building with eight townhouses.
The original disclosure statement sets Jan. 31, 2024, as the “outside date” for completion, which is 18 months away.
Wong said it’s likely the disclosure statement would be amended to extend that date, which he said is a common occurrence with projects.
The B.C. Financial Services Authority, which oversees different financial sectors, has a lengthy checklist of what to watch for and how to ensure provincial safeguards under the Real Estate Development Marketing Act that protect pre-sale buyers’ deposits and other aspects of the sale.
Mike Stewart, an Oakwyn Downtown Realty realtor who specializes in pre-sale purchases, said it’s important to work with specialists who can explain the disclosure statement and ensure the buyer understands it before the end of the seven-day cooling off period for sales.
“If there are parts they don’t understand, they should ask their realtor, and they should also have it reviewed by a lawyer,” he said.
And he said it’s important for buyers to research the developer before they sign a contract.
“If they’re a smaller developer, find out who they are and find out what their track record is,” he said.
He said delays during a project aren’t uncommon.
Wong said he kept all buyers apprised periodically of the reason for the delay.
Even after learning this week that the city building permit was finally granted, Evans said he is still “skeptical and worried” about the status of the condo project.
“It’s been frustrating and stressful on me and my wife,” he said.
More news, fewer ads: Our in-depth journalism is possible thanks to the support of our subscribers. For just $3.50 per week, you can get unlimited, ad-lite access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The Province.
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.