A North Vancouver couple that withdrew from its pre-sale condominium contract is being sued by the developers in a move that’s likely motivated by the economic crisis, the couple’s lawyer says.
John Whyte, who is representing the couple, said that in a healthier market, a vendor likely wouldn’t “engage in litigation” over a dropped contract.
“In a rising market, if someone chose not to complete a real-estate (transaction), it’s no skin off the vendor’s nose because they know they can get another buyer,” Whyte said.
“But if the market is going the other way … then they stand the possibility of suffering a loss.
“I anticipate that one is going to see a lot more cases like that.”
The dispute arose in December 2007 when the couple put down a deposit with Amacon real-estate developers for a unit in Surrey’s Morgan Heights development.
Whyte said when they later rescinded the deal, Amacon sued them for the deposit, plus interest and damages.
Whyte said according to the Real Estate Development Marketing Act, if developers don’t deliver amendments to disclosure statements — which his clients claim they never received — the purchaser is no longer bound by the terms of the contract.
As a result the couple is counter-suing to have its deposit returned.