Annette Thomas : Sophia - 298 E 11th Ave

Any person considering purchasing a unit in a new development...

"First and foremost they should work with a realtor. A licensed realtor is knowledgeable in working with presales, looking at the contract, the clauses and developer's disclosure statement..." says Valouche. "It doesn't cost anything to buy with a realtor and it allows buyers to be protected by a special emergency fund that agents pay into."

RicK Valouche - Real Estate Board of Greater Vancouver

Developer pulls out of East Vancouver condo build

Glenda Luymes, The Province Published: Sunday, February 24, 2008

East Vancouver: 81-unit Sofia project 85-per-cent complete

A Vancouver developer has pulled out of a Mount Pleasant condo project -- leaving buyers wondering what will happen to their investments.

The Sophia on East 11th Avenue and Sophia Street went into receivership last Monday, according to CBC News. The 81-unit project was about 85-per-cent complete.

It's not the first time the developer, the Eden Group, has pulled out of a project. In November, Eden cancelled two condo developments worth about $95 million before the buildings got off the ground. About 55 buyers had deposits refunded.

Company owner Bill Eden told media at the time that the civic workers' strike had caused costly delays, while rising labour and material expenses were prohibitive.

Eden could not be reached for comment yesterday, causing speculation over the fate of the Sophia. Many of the units were sold about two years ago. A two-bedroom suite in the Sophia is listed on the contract assignment website www.buildingdigger.com for $599,900.

Greater Vancouver Home Builders Association CEO Peter Simpson said he was "concerned" to hear about the Sophia, but hadn't been able to reach Eden to ask what had happened. "It's very disconcerting for me, and I think for any developer out there. It reflects on everyone," he said. But Simpson said that while construction costs are causing challenges for developers, he doesn't see a trend developing.

"Major developers would never dream of doing anything like this," he said. "The major developers would just suck it up. Their reputation is at stake. They'd swallow their losses and finish the project. With a smaller developer, it can be more difficult."

Simpson said there have been 78,000 housing starts in the Vancouver area in the last four years. "It's a strong market. It's only a very small number where things like this are happening," he said.

Simpson recommends anyone pre-buying a home to take their contract to a real-estate lawyer to review it. By law, buyers have a seven-day right of refusal to back out of the contract. The law also requires developers who may have had problems in the past to disclose that information in the contract. "This is a moot point for the people in this case," he said. "This has to be a big worry to them right now."

Simpson said the receiver could find another developer willing to finish the project and honour the existing contracts or ask buyers to pay more. "If there's a debt it might be a difficult situation," he said. "My hope is that, at the end of the day, the people will get their homes at the price they paid."

Features:

IMPRESSIVE LIVING FEATURES

• 9 foot ceilings (townhomes, studio lofts with up to 18 foot ceilings)
• Choice of 2 professionally designed color schemes by Ela Rezmer Design

Open, functional floor plans including:
    - one bedroom
    - one bedroom studio lofts
    - one bedroom and dens
    - 2 bedroom with two bathrooms
    - 2 bedroom, 2 level townhomes

• Energy efficient fireplaces with elegant glass tile surround
• In-suite storage areas
• High end exotic hardwood flooring
• Designer carpets in bedrooms
• Venetian blinds on all windows
• Spacious lower floor patios and upper floor balconies
• Two elevators
• “Technology Ready” for advanced internet and telecommunications plus digital cable TV

DREAM KITCHENS

• A gourmet’s delight! Open style kitchen with peninsula or island
• Gourmet Architect series GE Stainless Steel Appliance package including:
         - GE Stainless Steel Fridge                                 - 30-inch microwave hood combination
         - Self-cleaning gas range                                    - Whisper quiet multi-cycle dishwasher
         - ½ horsepower in-sink garburator

• Glass tile backsplash
• Custom designed, European style, flat panel cabinets
• Imported polished granite countertops
• Stainless steel sinks with polished chrome
finish faucet and vegetable spray
• Overhead designer halogen track lighting

LUXURIOUS BATHROOMS

• Custom designed flat panel cabinets                     • Imported granite polished countertops
• Deep soaker tubs with ceramic tile surrounds     • Distinctive porcelain tile flooring
• Polished chrome accessories                                 • Expansive vanity mirror

SAFE & SECURE

• State of the art fire protection – monitored sprinkler system and in-suite smoke detectors
• Bright secured underground parking
• Individual storage lockers in the parking level
• Bicycle storage lockers
• Security enterphone with video camera surveillance
• 2-5-10 National Home Warranty

LOCATION, LOCATION, LOCATION!!

Sophia is close to:
    - Cafes (Soma Café, Lugz, Cuppa Joes, Starbucks)
    - Boutiques
    - Banks
    - Restaurants (Aurora Bistro, Monsoon, Slickity Jim’s Chat ‘n’ Shew, The Whip Gallery)
    - Grocery Stores (large & small)
    - Parks
    - Public transit

NATIONAL HOME WARRANTY
Standing behind the builder’s quality, you’ll have the added comfort of knowing that your home is protected by the 2-5-10 National Home Warranty Program.

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January 2008

Sophia condo project falls into receivership

Developer cites municipal strike, labour costs, contractors who abandoned job

Derrick Penner, Vancouver Sun Published: Friday, February 29, 2008

Bowra is also the receiver in those cases, and said that while they faced some cost overruns, the receivership had more to do with the project financiers losing confidence in management of the development.

In his most recent report to B.C. Supreme Court, Bowra said the lenders on both buildings have agreed to finance completion of the projects, and the pre-sale buyers will be able to complete the purchases of their units at contract prices.

"Given the market conditions and the fact these people are in the money, I suspect the majority, if not all, will want to complete those transactions," he added.

However, in an interview Thursday, Bowra said about 22 units appear to have been pre-sold at prices significantly below prevailing market prices at the time, and he is seeking some direction from the court on how to handle those. He said some of the buyers were "related parties" to the developer.

Bowra was also the receiver appointed to last spring's high-profile failure of the Riverbend condominium project in Coquitlam, where the developer attempted to cancel pre-sale contracts to re-sell them at higher prices when construction costs exceeded the revenue from the contract prices.

But Bowra doesn't see a trend developing, noting that "there haven't been too many [failures]."

Peter Simpson, CEO of the Greater Vancouver Home Builders' Association, added that while the industry has strained under labour shortages and inflation of costs, the failures are still isolated cases.

"Over the last four years, there were 78,000 new homes and condominiums delivered a the price agreed upon without incident," he said.

Annette Thomas

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RE/MAX Crest Realty (Westside)
#2 - 1012 Beach Avenue
Vancouver, British Columbia
V6E 1T7 Canada