Buyers hope for court win in Lower Mainland condo case

An appeal has been scheduled for pre-sale buyers in the Murrayville House case.

Would-be buyers of condos in the beleaguered Murrayville House project are appealing a judge’s decision that saw their pre-sale contracts cancelled.

Fred West has been waiting two and a half years since he and his wife put down their payment for a condo in the project.

After numerous construction delays plagued the project, it was finally completed physically late last year. However, legal wrangles between the creditors, the pre-sale buyers, and the builder continue. The project is in receivership and remains empty as ownership is sorted out.

On April 4, pre-sale buyers were devastated by a ruling that their contracts had essentially expired, and mortgage lenders to the project took priority.

The pre-sale buyers would have right of first refusal to buy their units, but at current market prices.

That’s impossible for many of the owners, who put down their deposits before condo prices skyrocketed.

“We paid somewhere in the vicinity of $340,000, and it was going to be listed for $503,000,” West said of the condo he’d planned to buy.

Now a judge has sent the matter to the B.C. Court of Appeals. A three-judge panel will hear arguments by a group of 22 buyers, represented by Solimano Law, on June 12.

“One for the little guys,” said West.

He admitted the buyers have no idea what the appeals court judges will decide, but he was very satisfied they’ll get a hearing.

If the appeals court overturns the ruling and sides with the pre-sale buyers, it could set a legal precedent for similar real estate situations in B.C.

On April 4, Justice Shelley Fitzpatrick had ruled that mortgage holders had legal priority over pre-sale buyers.

Creditors who financed various mortgages are owed more than $51 million in principal and interest.

The lenders had opposed allowing the pre-sale buyers to fulfill their contracts. They argued for selling the units at market price so they could recoup more of the money they are owed.

An appraisal of the project showed that the units’ value was 46 per cent higher than contract prices.

There are 92 units in the building. Courts are still sorting out the ownership of many of the remaining units, which had even more complicated issues to resolve. Fitzpatrick described the situation as “chaos” at one point in her April 4 judgment.

The primary developer of the project, Mark Chandler, was ordered extradited to the United States earlier this year to face a fraud charge in California. He is currently appealing that ruling.

The RCMP has also confirmed it is investigating the situation around Murrayville House.

Just Posted

Recruiting physicians to practice in Chilliwack is an uphill battle

Shortage of doctors is critical right across Canada, and not just Chilliwack

Chilliwack prolific offender a no-show for sentencing hearing

Warrant issued on May 17 for Jeffrey Michael Kizmann wanted for robbery

More than 100 military troops stationed in Chilliwack on flood watch

As water recedes in the Interior, military departs with a contingent to stay behind in Fraser region

De Jaeger throws his hat in the ring for Chilliwack city council

Longtime owner of Bravo Restaurant also ran in the 2015 federal election for Chilliwack-Hope

Column: Chilliwack’s RBC Cup win a dream come true

Jacob Bestebroer spent hours wondering what a championship might feel like, and finally found out.

Vancouver Island girl scores with winning song for BC Summer Games

‘Colours’ is a perfect theme for 2018 BC Summer Games

Drivers could pay $8 per day to help cut gridlock under new plan

Mobility pricing report outlines two existing models to cut Metro Vancouver congestion by 20-25%

B.C. pipeline goes ahead despite scrapped Pacific Northwest LNG

NEB approves amendment for $1.4-billion natural gas North Montney Mainline Project

Update: Wildfire northwest of Kamloops jumps from 60 to 800 hectares

Ground crews and aircraft are responding to an estimated 50 hectare wildfire approximately 55 kilometers northwest of Kamloops, near the Deadman Vidette Road.

Feds limit chinook fishery to help killer whale recovery

Chinook is main food source for only 76 southern residents killer whales left

B.C. mom who died just before daughter’s wedding wanted family to be happy: twin

Ann Wittenberg was pulled into the ocean while on a surf board in Tofino last weekend

Courtenay-Alberni MP calls for lifeguards at popular surf spot near Tofino

The Pacific Rim National Park Reserve is defending its decision to cancel the surf guard program.

Harvey Weinstein to surrender in sex misconduct probe: officials

Would be first criminal charge against Weinstein since scores of women came forward

Fuel truck crash closes B.C. highway, sends two to hospital

The Trans-Canada Highway on Vancouver Island is expected to be closed until Thursday evening

Most Read