Nolan Killeen invited a Times photographer to have a look at the wing of the Murrayville House condo where the two-bedroom suite he and his fiancee bought is located. They just learned that a court-ordered receiver has proposed canceling their sales agreement and 90 other contracts that are not considered “bona fide.” Dan Ferguson Langley Times

VIDEO: Condo buyer shocked to learn sales agreement could be cancelled

Was third purchaser of unit in troubled Langley project

Nolan Killeen pointed out the upper-floor two-bedroom suite he and his fiancee purchased.

“There it is,” he said.

He was standing on the recently-landscaped lawn outside the troubled Murrayville House project, a four-storey wood frame condo at 5020 221A St. in Langley.

He can’t get any closer than that, thanks to multiple legal battles that landed the project in court and have prevented Killeen and other purchasers from moving in.

Killeen had just discovered that his sales agreement is on a list of 91 purchases that are not considered “bona fide” by the court-appointed receiver now in charge.

“I was shocked,” Killeen said.

The report to the court by the Bowra Group Inc., filed on Nov. 16, says the receiver considers less than half of the sales agreements, 58, to be “bona fide” sales agreements because they were at fair market value.

The other 91 should be cancelled for a variety of reasons, the report states, including some units that were sold more than once, some that were sold at a discount, and some that were sold after the sales centre was closed.

The report says a number of the 92 units in the four-storey wood frame condo have been sold more than once.

“There are 149 (Purchase Sales Agreements) for the sale of 91 units,” states the report, which was filed Nov. 16 and has been posted on the Bowra website.

“A total of 31 units have been sold twice … 12 units have been sold three times; and … one unit had been sold four times.”

Killeen said he and his fiancee were actually the third buyer of their suite, and the deal was done after the sales office was closed. At the time, they had no idea any of that could be a problem.

“(We had) humongous reliance on the realtor,” Killeen said.

“It (the suite) was posted on the MLS as a unit for sale.”

If his contract is cancelled, Killeen will get his deposit back, but he says he won’t be able to make up the difference between what the suite cost when he bought it and what it would cost to replace in the current market.

He said the lost value could be as much as $100,000.

That is why he and his fiancee have bought a townhouse just across Fraser Highway from the Murrayville House project.

Because housing prices were continuing to rise while they waited for some kind of resolution, “we had to jump back into the market” Killeen said.

“It’s frustrating,” he said.

“You wonder, how does this happen. It just makes you question the entire system that governs real estate transactions in B.C.”

Mario Mainella, Bowra Group’s senior vice-president overseeing the Murrayville file, said the recommendation to cancel certain contracts won’t happen without input from the people holding the contracts.

“Everyone is going to have an opportunity to respond,” Mainella told The Times.

Asked whether any laws were broken when the suites were sold several times over, Mainella said it wasn’t an issue the receiver was required to consider, but it should not have happened, in his opinion.

“It’s wrong,” Mainella said.

“Whether you want to call it illegal (or not) it’s wrong.”

The builder of the complex owes at least $62 million to various creditors, more than double the estimated $29 million replacement cost of the building, according to the receiver’s report.

On Oct. 4, a B.C. Supreme Court ruling put the Bowra Group Inc. in charge of the Murrayville House condo complex, which has sat empty while creditors complain the company that owns it owes them millions of dollars that it has failed to pay.

Appointed under the Real Estate Development Marketing Act (REDMA), Bowra is a Vancouver accounting firm with expertise in insolvency and restructuring, that has been named the receiver and manager “of the assets, undertakings and properties” of Murrayville House builder Mark Chandler, of Newmark, doing business as 0981478 B.C. Ltd.

READ MORE: Consumer alert issued about Langley condominium project

The receiver said the company that built the condo is refusing to say what happened to about $12.2 million paid “by 68 parties for the full payment of the purchase price of a unit.”

The company, according to the receiver, has not provided “any accounting of these transactions or confirmation of as to how much, if any of the funds are held in a bank account.”

The receiver went to court last week and obtained an order requiring the builder to provide the banking information.

READ MORE: Losses mount for buyers of troubled Langley condo project

All but one of the pre-sale purchasers have told Bowra that they want to complete on the sale of the units, the report states.

Following its appointment, Bowra immediately changed the locks on the project and hired a security company to patrol the premises.

The report says the project is virtually complete, and finishing it would cost between $108,000 and $158,000 for things like cleaning the suites, fixing interior deficiencies, landscaping and parkade membrane repair.

An online profile of Newmark president Mark Chandler describes the company as “a full-service real estate development and construction company with over three decades of experience in building homes of distinction, from mid-rise boutique dwellings to high-rise concrete towers, as well as commercial, recreational and retail properties throughout British Columbia, California and Arizona.”

Tag

 

The Murrayville House condo project is only a few thousand dollars away from completion, according to a report filed in court. Dan Ferguson Langley Times

Just Posted

Do you have the right ID to vote in Chilliwack’s municipal election?

Chilliwack residents will need identification that proves both residency and identity

Anti-SOGI Chilliwack school trustee files defamation lawsuit against BCTF president

Barry Neufeld says Glen Hansman’s words caused him “indignity,” “personal harassment,” and “anxiety”

Fraser Valley Labour Council endorses four Chilliwack school board candidates

Union group endorses three for city council, pulls endorsement for mayoral hopeful Sam Waddington

Man accused of killing Belgian tourist along Highway 1 appears in court

Sean McKenzie, 27, made second court appearance since his arrest in connection with the murder of Amelie Sakkalis

Driver assaulted near Agassiz following road rage incident

RCMP ask for public’s help identifying suspects involved in Highway 9 incident

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

3 in serious condition after altercation on Granville strip: police

Patrol officers came upon the fight just after 3 a.m. on Granville Street near Helmcken Street

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Pedestrian rushed to Lower Mainland hospital after being hit by car

Friday night crash is latest in rash of collisions involving pedestrians in Surrey

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

Most Read