Matthew Nied has been quoted in Business in Vancouver’s story “Court Ruling Shows Risk of Pre-Sale Contracts” which looks at a recent BC Supreme Court ruling that allowed a receiver to sell 40 homes in a Langley, BC, development at market value to raise additional capital to pay lenders that lost money by financing an insolvent developer.
Matthew, who suggested the analytical framework that the court used in making the decision, believes that the key takeaway is that signing a pre-sale contract is no guarantee of a future home: “Pre-sales can be a gamble. If you’re entering that gamble with a … developer at risk of going into the insolvency process, at the end of your waiting period, you may not have a property to move into.”
This article has been re-posted on Western Investor and Vancouver is Awesome.