SRAMP said:
I can't believe this. But it seems like it is too good to be true. I think, For now, they plan to move the outside occupancy date to 2028. Once that’s settled and everyone believes the price won’t change, they will likely adjust the price around 2027 or closer to the occupancy date.

I feel like some trap is here.
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the contract with ELM to complete is 24 months once they start ..

In addition to the construction management fee, Elm is eligible to earn certainincentive bonuses including:i. a bonus of 15% of the amount by which the total Division 1-16 constructionhard costs to the total completion of the Project are less than$100,000,000.00; andii. three scheduled based incentive payments of $200,000.00 each percertain occupancy related milestone dates.f) Schedule: the schedule assumes that the construction will commence promptlyfollowing Court-approval with a completion target date of 24 months.
 
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I think this is very important, can they do amendments to current purchase agreements?
 
This clause gave me cause for worry - at $20M in development charges across 240 units, this is putting dev charges at about $83k per unit. I didn’t get development charges capped in my contract so I’m sh*tting bricks about what that bill would look like if I close.

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I think they’re going to increase prices since they will have to amend our closing dates regardless, which grants us an exit. I’m just going to take the money and run, even if they build this within 24 months I have no interest fighting Tarion to repair the piece of garbage they are going to inevitably cobble together with the cheapest materials possible.
 
Judging by the tone of this section, looks like KSV has accepted that the old contracts are as good as cancelled because of our Outside Occupancy Date. Since they’re going to be losing most of their pre-sales, I fully believe they’re going to amend the prices to current market rates to try and get more money out of this thing once it’s finished. KingSett is already in this mess, which is why they’re the only ones willing to fork over more cash.

I think we might actually have the option to get our deposits before April if this Amendment Order goes through soon!

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athundo said:
This clause gave me cause for worry - at $20M in development charges across 240 units, this is putting dev charges at about $83k per unit. I didn’t get development charges capped in my contract so I’m sh*tting bricks about what that bill would look like if I close.

View attachment 597400

I think they’re going to increase prices since they will have to amend our closing dates regardless, which grants us an exit. I’m just going to take the money and run, even if they build this within 24 months I have no interest fighting Tarion to repair the piece of garbage they are going to inevitably cobble together with the cheapest materials possible.
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Possible yes regarding development charges if not capped..
 
athundo said:
This clause gave me cause for worry - at $20M in development charges across 240 units, this is putting dev charges at about $83k per unit. I didn’t get development charges capped in my contract so I’m sh*tting bricks about what that bill would look like if I close.

View attachment 597400

I think they’re going to increase prices since they will have to amend our closing dates regardless, which grants us an exit. I’m just going to take the money and run, even if they build this within 24 months I have no interest fighting Tarion to repair the piece of garbage they are going to inevitably cobble together with the cheapest materials possible.
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Yes. We are screwed if we didn’t cap development charges. I didn’t. So, I will opt out of contract when they amend the dates.
 
SRAMP said:
Yes. We are screwed if we didn’t cap development charges. I didn’t. So, I will opt out of contract when they amend the dates.
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But this is not just KSV its a common scenario when buying preconstruct..a friend just got nailed same paid close to $43k in dev charges also including mentioned to me carbon tax .. i am wondering how CT is now included with developers..
 
Deanfeb said:
But this is not just KSV its a common scenario when buying preconstruct..a friend just got nailed same paid close to $43k in dev charges also including mentioned to me carbon tax .. i am wondering how CT is now included with developers..
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You are right. It is normal for pre construction. I should have done this but didn’t. I was not aware of this at that time. But now I m not interested. I don’t want to wait another 2 or 3 years. Even if they don’t increase price now I don’t want to gamble again with the hope that they won’t increase the price in the future. I fed up with this one. I just want to get out of the contract asap.
 
Deanfeb said:
But this is not just KSV its a common scenario when buying preconstruct..a friend just got nailed same paid close to $43k in dev charges also including mentioned to me carbon tax .. i am wondering how CT is now included with developers..
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One more thing development charges increases with every year. By the time this project is complete it would have been already 10 years. So the development charges would be 2 times more than other normal projects. 43k is ok, I can manage but ours would come around 90k.
 
SRAMP said:
How can they hold the deposit for 24 more months? As per the contract, we can initiate the termination process immediately (1 month) after outside occupancy date.
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thats my point from beginning i want out with my cash!! well i meant until the last ocupancy date or could use delayed clause as per receivership? never know the bs they can come up with!!
 
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