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Vancouver Condominium Projects Cancelled: The Elyse and Montgomery Estates by Eden Group

I heard some talk of this yesterday, but no specific project mentioned. Well low and behold my morning Vancouver Sun had it right there in the business section (apparently this is not front page news anymore) and also on cbc.ca. It seems that the Eden Group has cancelled their planned development in Mount Pleasant, The Elyse, at East 7th Avenue and Scotia Street as well as a Vancovuer condo projects cancelled by developer, The Eden Group townhouse development, Montgomery Estates, at Oak Street and W. 43rd Ave. I was curious that they had not sold out the Elyse as this had been such a popular area, but Bill Eden is quoted in the article saying "that most of the pre-sale buyers in the Elyse development were investors in the project itself, who had the right to pre-purchase units. "They're not public third-party people," Montgomery Estates had not been pre-sold, in fact I don't even think that the site is cleared. It is an interesting development though, similar to one of the infamous Mark Chandler developments, Hamlin Mews, and a sign of the Eco-density initiatives from City Hall. The site is an assembly of single family home lots along Oak Street that was to be turned into much the denser townhouses. Expect to see more of these types of developments along Vancouver's busy arterial routes in the future

Generally it sounds like he did the right thing. Although it would have been better if he'd realized these problems before he started selling and marketing the The Elyse, it has been a matter of months rather than years and he got caught by the increasing construction costs and the city strike.

The article also mentioned important changes to the ways new construction units are sold:

"The B.C. Financial Institutions Commission recently ordered developers to provide increased disclosure to buyers of pre-sale condominiums which have yet to be built.
The disclosure rules, which took effect Nov. 1, force developers to explain any provisions for terminating, extending or assigning purchase agreements. Buyers are required to initial the cover page of disclosure statements to confirm the provisions were drawn to their attention.
Pertinent information must also appear in "conspicuous type" on the statement's cover page. The rules also provide for more disclosure of developers' backgrounds, including:
- Their experience in the development industry.
- Whether they have been bankrupt in the past five years or been disciplined in the past 10 years for matters relating to real estate, mortgages of land, securities, theft or fraud.
- Whether any conflict of interest exists that could affect a buyer's purchase decision.
Failure to comply with the disclosure requirements could result in the issuance of cease-marketing orders or "administrative penalties" of up to $50,000."

If you are buying a new development pre-sale condominium make sure the developer is following the rules. I would guess that there is a good chance that they are not. Keep your eyes out for my upcoming post on tips for new construction home-buyers.

Posted by Matthew Collinge, REALTOR®, Vancouver Homes on 11/28/2007 08:42 PM

Comments (13)

vancouver, real estate, condominiums, new developments

This post has been included in British Columbia Information Greater Vancouver, BC Information

13 Comments on Vancouver Condominium Projects Cancelled: The Elyse and Montgomery Estates by Eden Group

I bought at the Elyse. i'm going to have my Lawyer look over the documents. Do you have any suggestions to make or anything i should look for?

Are developers "allowed" to do this?

thanks in advance,

Anonymous.

12/03/2007 10:16 PM

by N/A

Hi there,

That sucks. You are doing the right thing by having your lawyer review everything.

There is not much you could have done. Eden has not had any past problems that I am aware of. Pretty much every developer's contract gives them an out like this these days and I am pretty sure that the Real Estate Marketing and Developement Act gives them the right to do it this way.

Best of luck with it,
Matt

12/03/2007 11:16 PM

by Matthew Collinge, REALTOR®, Vancouver Homes (Royal LePage Westside)

I decided to sue this developer. I''ll keep you informed in the coming weeks.

12/17/2007 03:12 PM

by anonymous

Thanks for the update. Let me know how it goes.

12/18/2007 04:10 PM

by Matthew Collinge, REALTOR®, Vancouver Homes (Royal LePage Westside)

Now this very same developer has declared himself or the company running the Sofia development in Receivership.....early buyers are in limbo now.......

02/21/2008 11:54 PM

by mr. x

Yes, thats right, the Sofia as well. Interestingly the Montgomery Estates site on Oak Street in being cleared and prepared for building now. Nothing in the media about whether he has sold it or not and no sign at the site.

Thanks for visiting my blog and thanks for commenting.

02/22/2008 10:32 AM

by Matthew Collinge, REALTOR®, Vancouver Homes (Royal LePage Westside)

The Montgomery was sold and it will be developped by a different company (Concord Pacific).

The Elyse is also being sold (Onni).

The worst of all will be for Sofia. All those buyers who purchased 2/3 years ago won't be able to get their units for the original price. They will get their deposits back, or will have to negotiate with the recievership (pay more so that the prject can be completed). This building was 90% ready. And the prices, as an average, were more than 100,000 higher than original prices.

02/22/2008 11:19 AM

Thanks for the heads up on those. So many developers, so little time. I thought the Sofia was going ahead. Thats terrible if its not. Just like with Riverbend in Coquitlam the market has gone up so much that many of thise buyers will just be priced out.

02/22/2008 03:19 PM

by Matthew Collinge, REALTOR®, Vancouver Homes (Royal LePage Westside)

I also purchesed unit in Elyse and got the deposit back. Than reinvested to purchase one unit at Sofia just about 2 motnhs ago. I received news from my mortgage specialist that Eden Group is in receivership (to be executed by Bowra Group).

Since not being original buyer, rather an assignee not sure where I am standing now, but I am going to consult my lawer before anything.

Building was about 90% complete; it will be up to the courts now to decide.

Sine the case of Riverband is pretty simillar (project in Coquitlam cancelled last year due to rising costs), courts ordered Bowra Group to finish the project and to sell units at current market price which was 80K more. Original buyers were offered to buy first. So, I am assuming something simillar will happen in this case. Hopefully, I will be able to get my deposit back.

02/23/2008 11:02 PM

The Elyse project was sold to the Onni group. Land title was registered yesterday.

03/06/2008 02:23 PM

by Mr. X

Thanks for the update Mr. X.

03/06/2008 06:23 PM

by Matthew Collinge, REALTOR®, Vancouver Homes (Royal LePage Westside)

The Eden Group is being petitioned by all it's construction lenders in both Calgary and Vancouver...this guy is done...for good!!!!

04/23/2008 08:07 PM

by Mr. G.

Thanks for the update MR G.Yes it will be a long long time before anyone will buy a home from him.

04/24/2008 03:27 PM

by Matthew Collinge, REALTOR®, Vancouver Homes (Royal LePage Westside)

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