New Builder - Can You Back out of Purchase?

[khrt]

Is there any recourse to allow you to back out of a condo deal if the project is sold before construction begins?

can the builder redraw the floorplans without telling you?

what kind of protection do you have in this scenario?

 

[interested]

Is there any recourse to allow you to back out of a condo deal if the project is sold before construction begins?

can the builder redraw the floorplans without telling you?

what kind of protection do you have in this scenario?

As a rule, you have 10 days of cooling off. After that, you generally can't back out of the deal. If the project has sold really well, you have a desirable unit, and prices have increased, the developer may agree to reimburse you. Otherwise, read your contract and see if you are allowed to assign.

I believe the builder can make minor variances in size to a floor plan but not material change which is a somewhat nebulous term. Others on the forum may be able to provide more information. If there is a major variance, however (eg. elimination of a den for example) then i think you have a case.

 

[neuhaus]

If there are any material or finish changes made, the builder must provide a substitute that is either equal or greater in cost to the original.
Likewise, if there are any significant changes of size and layout of the unit, the revision must also benefit (not penalize) the purchaser. There is one lucky forum member here who had his unit enlarged after he bought his 1 bedroom condo and didn't have to pay a thing -- the layout was improved as well.

 

[Solaris]

I think if the builder sold their project to another developer (ie: Baywood sold Bohemian Embassy to Pemberton) ... your agreement may be considered voided unless the purchaser consents to the changes .. best to check with your lawyer on this one

 

[chucky]

backing out of a purchase

Most condo purchase agreements allow the builder (but not you) to assign the contract, so there is nothing you can do about that. If, however, there is a "material change" you are entitled to rescind.

Material change is defined as something that, had you known it from the start, you would not have made the purchase. It has to be of sufficient significance that the average person -- not just you -- would consider it important. For example, a variance of more than 5% in the square footage is a material change, but less is not. Changes to the amenities, landscaping, number of floors, units per floor and other things that do not affect your unit are generally not considered material.

It is not clear-cut. A change in the builder is probably not material but in some cases it could be.

Practically speaking, you can ask the builder. They count on you not being willing or able to fight them on their decision, so they will do what's best for them.