More buyers are finding themselves at a loss after Terranata Developments cancelled The Step Condos, a pre-construction development near Islington and Finch Aves.
The developer sent a notice of cancellation to Tarion, the agency that regulates new homebuilders, the Toronto Star reports. Tarion has since reached out to Terranata Developments requesting more information.
The Step Condos was announced three years ago and completely sold out its 111 units. The six-storey building was branded as an affordable residential condo with prices starting at $192,990. The entry-level pricing — as well as its ideal location just “steps” away from Humber College and York University — was a huge draw for prospective homeowners.
Unfortunately, due to the cancellation, one buyer, Glenda Francis, told The Star she’s now out “well over $100,000” after investing $212,000 in a bachelor unit in June 2016.
While Francis has received back her $16,000 deposit plus $2,500 in interest arranged by Brattys law firm, it's unknown whether or not other buyers have received a refund, The Star reports.
Builders always have an escape clause in their agreement of purchase and sale with investors, which allow them to get out of a contract if they pay back the deposit. However, if a builder does not reimburse their buyers, Tarion will offer a refund of up to $20,000.
This is the second condo cancellation in Toronto in less than a month. At the end of March, DIAM Developments terminated a 10-storey residential building on Danforth Ave. due to “unforeseen circumstances.”
Cancellations plagued the market last year, as more than 4,000 units (or 12 buildings) were scrapped, according to data by Urbanation Inc. This compared to 2017’s 1,678 terminated units is quite a contrast.
While it's too early to say whether or not condo cancellations will be a problem this year, the recent termination of The Step Condos is certainly not good.