Purchasers of EcoCité on the Canal condos on Bank St received a rude awakening this past Wednesday with news that their purchase agreements—some dating back 5 years—had been cancelled as the mortgage company seized the project.
In layman's parlance, investors were unwilling to front any more money to the cash-strapped project, where almost a third of the 25 units remained unsold after 5 years of continuous marketing. As such, the mortgage company now owns the physical building and is free to resell previously sold units, but at current market value. With 1-bedroom downtown condos now selling around the $250,000 mark, that could see most of the EcoCité units selling anywhere from an additional $50,000 to $100,000.
Little wonder that CBC reports the lender is eager to enter into new agreements with the stranded buyers, some of whom were said to be living in hotels after being told they would be occupying their new condo this Labour Day weekend. CBC further reports that a number of EcoCité's original buyers are talking to lawyers and as well as representatives from Ontario's Tarion Warranty Corporation.