Pre-sale condo buyer skeptical about down payment as Coquitlam construction stalls for three years

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A Ladner couple who put a deposit on a studio unit in an unbuilt Coquitlam condominium tower just before the COVID-19 pandemic are worried about their investment as delays delay construction.

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Gerry Evans and his wife, Lillian Liu, were told when they signed the presale contract for Horizon 21, a 21-story building with about 150 units, in February 2020 that the tower would be complete in early 2023.

But construction has yet to begin and the building still occupying the site at Blue Mountain Street and Lougheed Highway has not been demolished.

“I know these things happen, I did a presale before,” said Evans, who has so far put up about 10 percent of the cost of the studio unit, about $40,000. “But I have never seen this kind of delay. If there’s a chance the deal won’t go through, I’m not sure I want to make the next payment and be the fool who loses his money.”

Unforeseen delays, caused by a new layer of BC red tape and months of COVID shutdowns, are one example of how developers’ plans can be disrupted between the time pre-sale agreements are signed and the date actual move.

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The primary issue causing the delay is a new site disclosure statement that the BC Ministry of the Environment invoked in 2021 as a screening tool requirement for potentially hazardous construction sites. That issue has been resolved, Andrew Wong, a spokesman for the developer, Centered Developments, said Wednesday.

Wong said the developer couldn’t get a building permit from the city of Coquitlam until the site’s disclosure statement was approved. It was submitted by the developer in February 2021 and approved in late June or early July.

Wong said that means the demolition of the building can continue.

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He was unable to disclose when construction would break ground on the mixed-use tower with 142 condominium units, four commercial units and five office units on the second floor, as well as a three-story building with eight townhouses.

The original disclosure statement states January 31, 2024 as the “external date” for completion, which is 18 months.

Wong said the disclosure statement will likely be amended to extend that date, which he said is a common thing on projects.

The BC Financial Services Authority, which oversees different financial sectors, has a long checklist of what to look for and how to ensure provincial safeguards under the Real Estate Development Marketing Act. that protect pre-sale buyers’ deposits and other aspects of the sale.

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Mike Stewart, a real estate agent with Oakwyn Downtown Realty who specializes in pre-sale purchases, said it’s important to work with specialists who can explain the disclosure statement and make sure the buyer understands it before the cooling-off period ends. seven days for sales.

“If there are parts that you don’t understand, you should ask your real estate agent and you should also have a lawyer review them,” he said.

And he said it’s important for buyers to research the developer before signing a contract.

“If you’re a smaller developer, find out who they are and what their track record is,” he said.

He said that delays during a project are not uncommon.

Wong said he kept all buyers regularly informed of the reason for the delay.

Even after learning this week that the city’s building permit has finally been granted, Evans said he is still “skeptical and concerned” about the status of the condominium project.

“It’s been frustrating and stressful for me and my wife,” he said.

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