Condo Developer Problems Not Limited to North America
November 26th, 2008
Photo Courtesy of: atomicjeep
Well it seems that the problems we have seen with some of the developers here in the lower mainland, and other places in Canada and North America are not isolated occurrences.
In the once development thriving Dubai, there seem to be numerous developers who are stalling on projects while continuing to collect deposits from buyers. To make matters works the law has been changed such that if the buyers choose to cancel their contracts, or stop paying additional funds they will loose 30% of the value of the unit. Imagine that you have made a sizable deposit and owe a further deposit, but you feel that work is not likely to continue or even begin on the project, what do you do? If you stop paying the installment then you will be cancelling your contract and will loose 30% of the value. This is a very scary situation for sure.
Luckily here we do not have to worry about this, Deposits are protected and should the developer not complete or build the project, you will get the entire deposit back. Of course if you choose to cancel or walk away you will not get your deposit back and could stand to lose even more.
Bottom line, although things are tough right now and people are upset about some of the developments
, overall we have it pretty good and are protected pretty well compared to many other places.
For more info on this story read the National article “Property investors rally to the cause”.
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