07 October 2017 0 Comments Posted By : DAN FUMANO

B.C. real estate watchdog issues public alert as Langley condo development ordered into receivership

B.C.’s real estate watchdog has issued its first public consumer alert in four years, following a B.C. Supreme Court decision this week to send a troubled Langley condo development into receivership.

As Postmedia reported earlier in the week, longtime Metro Vancouver condo developer Mark Chandler was trying to keep Murrayville House, his 92-unit Langley condo development, out of receivership, after private lenders who financed the project applied to have a receiver take over selling the property and repaying millions in unpaid debts Chandler’s creditors allege he owes.

On Wednesday, after hearing arguments from lawyers for both Chandler and his creditors, a B.C. Supreme Court judge made an order appointing The Bowra Group as the receiver for Chandler’s numbered company and empowering them to act at once to “take possession of and exercise control over the property and any and all proceeds.”

Following Wednesday’s court order, B.C.’s Office of the Superintendent of Real Estate issued a public consumer alert, asking Murrayville homebuyers to call the Superintendent’s office and contact a lawyer “to fully understand their legal rights and remedies with respect to their purchase agreements.”

Murrayville was already the subject of an emergency order last month from Superintendent of Real Estate Micheal Noseworthy, ordering Chandler to immediately stop marketing the development, citing “a serious concern and a likelihood that the developer has sold one or more (Murrayville condo units) to more than one purchaser.” At least two lawsuits have already been filed on behalf of dozens of Murrayville homebuyers.

Mario Mainella, Bowra Group’s senior vice-president overseeing the Murrayville file, said the case was “extremely unusual” in some respects.

“When it gets to the point where a receiver’s appointed, there’s usually a number of problems,” Mainella said.

It’s much more common to see a receiver appointed to take over an incomplete, partly built project, he said, something that occurred after the 2008 financial crisis. It’s far less common to see a receiver appointed to take over a completed development like Murrayville.

But even though occupancy permits were issued for Murrayville in August, there are still a number of hurdles that exist before any sales can complete, considering the complex tangle of legal disputes and regulatory actions now facing Chandler and his project.

“Based on the feedback we’ve received from a number of the lenders and some of the legal counsel representing numerous presale purchasers,” Mainella said, “they lost faith in the developer.”

Murrayvile condo presale purchasers are encouraged to contact the Bowra Group at 604-689-8939.

“We’re just in an information gathering period,” Mainella said. “We have to do our investigation and our analysis to determine where things are at, because there’s a lot of moving parts here.”

Read more...

views : 24 | images : 1 | Bookmark and Share


Enter your comment below



Leave a Reply