Recently we have seen a few cases (see links below) that deal with two different strata developments, in which buyers of pre-sale condos have been dealt a very disappointing blow.
Developer Faces Mounting Lawsuits, Extradition to US on Fraud Charges
Buying pre-sale involves placing your trust in the developer to deliver what they are promising. You hand over your deposit on the promise that your home will be built in 2-4 years. Most of the time this happens...but as we've seen with these two instances it's not always the case.
In today's red hot market market, many buyers are foregoing their due diligence, and considering themselves lucky to just get their hands on something. These articles are powerful reminders of the risks of doing so.
When purchasing pre-sales the developer's track record and reputation should be a primary consideration. There are often challenges and unforeseen events that developers will face, but it's how they handle those that makes the difference.
1) Who is the developer? and who are the directors of the company
2) What is their track record? What are some of their past projects?
- we recommend buyers going to visit some of these past projects, and also looking at the re-sale history of those buildings
- Be sure to actually read the contract and disclosure statement. If you're unclear about anything make sure to discuss with your Realtor and/or Lawyer