Dream home purchase turns sour for GTA couple

It’s no secret, the GTA is undergoing a condo boom and thousands of people are lining up to buy brand new homes built from scratch.

Stephanie Cerovac and her husband put down a deposit nearly three years ago for their dream home, just steps away from the lake in Port Credit, Mississauga. That dream turned into a nightmare earlier this week when she received an email from the condominium developers cancelling the entire project.

“We were very overwhelmed and very upset because we did sell our condo recently,” said Cerovac.

Dunsire Development pointed to permit issues and spikes in material and labour costs as just a few of the reasons for failing to deliver their units. In an email to CityNews, the developers said they told buyers they would give their money back with interest. For Cerovac, that’s simply not enough, pointing out housing prices have skyrocketed in the time since she first paid her deposit.

“Three years, prices have jumped so much,” she said. “I think we deserve more because now we have to go find a place that’s more money and it’s just going to be a bit of a more struggle.”

According to real estate lawyer Bob Aaron, there are a lot of risks associated with buying new builds. They range anywhere from the unit being smaller than anticipated to having incomplete amenities. Aaron says it’s important to know what you are getting into.

“There’s not much you can do because the agreement allows termination before completion or before construction. I hate to say this but they just have to suck it up and buy somewhere else or not buy but there’s no consequence against anybody because the right to terminate is built into the agreement.”

Aaron stresses the importance of reading the fine print and seeking legal advice from a lawyer. He also suggests potential buyers do some homework before opening their wallets.

“I always say, check out your builder, go to the Tarion website, check out the track record, knock on doors in other projects that the builder has done. If you’re getting a fuzzy feeling, maybe you should buy from another builder or another project.”

That’s a lesson Cerovac and her husband learned the hard way after selling their current condo. They have to move out by September 1 and will have to live with her parents until they’re able to purchase a permanent home.

“We need to find something, we just got married, we want to start a family, we have a dog. It’s kind of inconvenient to inconvenience my family, thank God we have them,” she said. “We’re rush, rush, rush now looking for a place.”