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 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.