The British Columbia government is stepping in to help would-be home buyers jilted by a developer at a new housing project in Vancouver's eastern suburbs.
The Superintendent of Real Estate issued a cease-marketing order to CB Developments 2000 Ltd. after the company cancelled presales contracts to dozens of purchasers at the Riverbend site in Coquitlam and refunded their deposits.
Finance Minister Carole Taylor said those who found themselves suddenly without a home "will at least know that there will be no reselling of their home until various issues under the (provincial Real Estate Development Marketing Act) are followed."
"So it gives everyone breathing room," said Ms. Taylor, "a chance to see exactly what the situation is [and] exactly what the contracts say."
The developer backed out of the presales agreements for the Coquitlam project by saying there was no way the builder could break even by selling at the original marketed price.
Instead, the single-family homes were being relisted at current market values, a difference the buyers estimated to be up to $100,000 a home.
Superintendent Alan Clark did not say what issues are being examined but he did ask people affected by the order to contact his office with "their concerns."
The act requires developers in B.C. to file amendments to disclosure statements when material changes that affect an individual's decision to purchase a unit in the development are made.
B.C. NDP House Leader Mike Farnworth called on the government last week to bring in legislation to protect buyers with presales contracts from being ripped off, saying the company's move was "absolutely outrageous."
Stephen Bulat, who placed a deposit on his home in August 2005 and sold his condo that same year, was supposed to move into his new house last month but instead got a letter stating the builder was unable to fulfill the contract.
Mr. Bulat said the company "has absolutely no legal ability to break these contracts" and the government's intervention is a first step.
He said he realizes "that's not going to solve everything" but noted some of the 32-odd buyers did not get legal counsel and the order at least puts a freeze on the situation.
"I don't know how the government can make sure these homes are completed."
