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Condo cancelled in Vaughan, expected to re-enter market later at higher price

April 10th, 2018  |  Home

Over 1,000 investors, who had been investing into a pre-construction condo development named Cosmos Condos, were shocked to find out that their investment opportunity had been cancelled and their future homes were now non-existent.

According to blogTO, the complex near the new Vaughan Metropolitan Centre TTC station was to house 396 units over 36 storeys, and was to be fully completed by 2020 but move-in ready by next year.

Liberty Development Corporation, the company behind the project, promised “futuristic architecture, ultra modern suites and state-of-the-art amenities” to attract pre-construction investors.

Moreover, the condo project was “already sold out” yet began to send letters to buyers explaining that they “had been forced to ‘cancel all agreements of purchase and sale.’”

The letters stated that Liberty had “recently learned that … circumstances beyond our control” had challenged Cosmos Condominiums. “At this time, financing for the project on terms satisfactory to the Vendor cannot be arranged.”

Speculation as to that vendor’s intentions has been circling around the internet since the customers began getting the cancellation letters.

The rumour going around is that Liberty Corp. is only saying they didn’t get the financing, so they legally cancelled it, only to turn around and put all of the condo units back on the market later, at a higher price.

The buyers will see their deposits “returned with interest, but many say that’s not enough of return on what in some cases was a huge investment.”

One buyer told reporters that his investment had already appreciated $70,000 since he bought his one-bedroom plus den for $330,000. Now, buyers are essentially priced out of the market when looking for a comparable unit.

Online communities have materialized by those affected by the cancellation. They are all intending to hound politicians – including Kathleen Wynne – to do something about the unfortunate, and potentially mishandled events.

Vaughn Mayor Maurizio Bevilacqua did respond saying that he is concerned about the “hundreds of people that have purchased a condo where they could live, experience and enjoy life in the community.”

The online group has discussed the potential of a class action lawsuit, and local realtors are looking to lend a helping hand.