The CBC has reported late last night that 11 purchasers at the Olympic Village, otherwise known as Millennium Water, have contacted a lawyer to get out of their agreements.
The details are not exactly clear but some of the reasons given by their lawyer were:
The buyers are unhappy that there’s a parking lot where there was supposed to be a park, that washers and dryers have not been installed in their units and that their $5,000 fireplaces are defective
Let’s dissect that.
A parking lot in place of a park – There was no promise a park would be there. It is, if I am thinking of the same lot, outside the grounds of the development to the East. It was turned into a parking lot when it was used for staging the Olympics. The park that is to be there was “Proposed”. I know the contracts for the Olympic Village and this argument holds no water.
$5000 fireplaces are defective. Really? They cost $5000? What kind of fireplace are they? In any case, this is a deficiency that should have been noted in the pre-completion walk-through, and will be addressed within the year. Most developers have a one year time span in which they must complete all noted deficiencies. This argument holds no water.
Washers and Dryers have not been installed. Well, that’s just bad form. I don’t think that’s a justifiable reason to get out of the contract, though.
The real reason, I suspect, for these “buyers” to want to get out of the contract is contained within this quote:
Give us our money back and sell them to someone else who wants to live there. My people don’t want to live there.
And that is certainly no valid reason to get out of the contract.
Now, enough about digging into what is a likely a far too abbreviated article. I’m sure these were just some juicy, easy, simple quotes strung together to form what passes for “journalism” these days. I mean, even Bob Rennie’s response was pathetic as it was portrayed and I am sure the marketing kingpin said much more than just:
“We have buyers going, ‘Wow, I love the hardwood floors and the view and the Sub-Zero [fridge],’” said Rennie
That said, could Millennium, Rennie, and whoever else was involved have handled the completions and possessions better?
ABSOLUTELY
I was with a couple on Wednesday, June 23rd, who, on June 22nd, had completed on a unit at 123 West 1st. Their mortgage had gone through and they were paying interest. They went to pick up their keys and welcome packages in the lobby of 181 West 1st – a completed building, by the way, which must be so exciting for the new owners to have their lobby transformed into a welcome centre (end sarcasm). With keys in hand we walked the block to the building. Up the elevator we went and the tension builds as the owners, thrilled to be seeing their completed condo for the first time, unlock the door. The thrills ended there. We were greeted with the following:
- Cat5 cable and phone jack hanging out of the wall, no plate.
- Flooring not finished with the edges not completed next to the Solarium.
- No door knob on the bathroom door.
- Clothes Dryer sitting in the living room – not hooked up.
This is unacceptable. It is completely unprofessional. It is astonishingly bad form. How could the developer say that completion would be June 22nd and be given the keys on June 23rd when the unit was not completed? These are minor issues, to be sure. A door knob, face plate, installing a dryer, and finishing the flooring takes about two hours (if one person does it and they are really slow). It should have been done.
These buyers just put down A LOT (capitals needed there) of money and are being given the keys to something that does not justify that cost. Again, small things but BIG BAD IMPRESSION.
How should it have been handled?
1) Make sure before you give the keys that the suites are perfectly finished. Yes, there will be some deficiencies that won’t have been addressed yet but everything would be installed, in place, working, and ready.
2) Have an attendant present who, when they give the keys and sign over the suite, takes the clients to the property and ensures that everything is OK. This not only guides people who are not familiar with the property to their new home but shows care and desire on the part of the developer to make sure the clients are satisfied (and are able to address concerns immediately).
The big issue, I’d wager, for these 11 wanting to back out is that their circumstances have changes and they wish to sell the property, only they paid more than it is worth on the market today. It will take time to address these deficiencies and that impacts marketing as well.
Another big issue for anyone wishing to sell right away is that not only will you be competing against other sellers but the developer as well. It looks like not much has moved since the big weekend opening.
Bob Rennie was quoted saying on May 17th
The Condo King was ecstatic. He made 36 sales in two days, the highest a $4.75-million waterfront pad.
“I’m happy,” he said. “Really happy. We’re ahead of schedule.”
And on June 24th it is reported:
The 473 remaining units went on the market in May and 36 have been sold so far, according to Bob Rennie, a Vancouver condominium marketer who the city has hired on a contract for two years to sell the project
(Bold emphasis mine)
Oh oh.
Vancouver, BC 