by Ray Kar, May 1, 2019
A couple of recent developments in the Toronto condo market. Buyers in the Cosmo Condo project lost their bid in court to have their condo contracts voided. If they had won, the buyers believe that would have set the stage for them to pursue compensation for “lost gains” from the cancellation of the condo project near the Vaughan Metropolitan Centre. The cancellation affected 605 buyers in the 454 unit project.
Even though the buyers had their deposits refunded, buyers felt left behind financially as housing prices grew rapidly between the time they purchased (in 2016) and the time the developer cancelled the project (March 2019). The would be buyers are re-evaluating their legal options.
To add insult to injury, the developer, Liberty Developments, is applying to the city of Vaughan to build a new condo tower project “just around the corner” from the failed condo project. In 2016 when Cosmo was launched condo prices where roughly $540 per square foot. Presently condo prices in the area are around $700 per a square foot.
In other dubious condo news, the owners of the Fountains condo complex in Thornhill are left wondering who is running the condo corp, when four of five board members suddenly resigned. Owners were not notified of the sudden resignation, leaving it unclear how, or who, would manage the $4 million dollar condo complex’s budget.
The complex’s board has recently been embroiled in controversy with owners angry about a lack of board transparency and two special assessments in three years, this along with a 27 per cent increase in maintenance fees during the same period. The latest special assessment calls for owners to raise $1 million to cover shortfalls in the complex’s reserve fund and operating budget.
Angry owner’s have been trying to oust the board with the help of a lawyer. The current president of the board Stan Morris, has drawn fire for appointing cronies who are not residents of the building to the board following the sudden resignations. However those board members have also since resigned. What happens next is not entirely clear, but a board will have to be constituted as soon as possible in order to ensure regular order of business for the corporation can be carried out and essential services and maintenance is completed.
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