A buyer of a condo in Airdrie is wondering why she can't get her money back.
When the economy stalled last year, so did the condo project she bought into in 2006.
In May of that year, Lindsay Bucholtz put down $8,700 to buy a condo in the building that was not yet built.
Bucholtz says when she signed the deal she was told her unit in Airdrie's Crown Shores condo complex would be done within two years. Four years later, the ground remains unbroken.
Buchotlz says if she knew then what she knows now she never would have made the purchase. "We could have bought a house with that money; we could have invested it somewhere. It's just sitting there. "
In a letter written in November of 2009, CPI Crown Capital Corporation told buyers that the company is doing its best to deliver, despite the recession, and gave buyers an anticipated possession date of November, 2011.
Bucholtz says five-and-a-half-years is too long to wait and she wants her money back. "I was told the CEO said they won't give any deposits back, they intend to fulfill their obligations and we just have to wait it out."
CTV Calgary's Lea Williams-Doherty contacted the builder several times to ask about the reason for the delay and whether it would let buyers out of their contracts. Those calls were never returned.
Williams-Doherty also reviewed Bucholtz's contract and noticed CPI gave no occupancy or completion dates. It also did not address what should happen in the event of construction delays.
With no guidance form the builder, Williams-Doherty went to an expert in Real Estate law.
When it comes to buyer's rights Jeff Selby says it depends on the situation. "It all relates to what has gone on and how the people have conducted themselves - both the developer and the purchaser."
Selby says a buyer may be able to get their deposit back but it depends on what the builder promised, what the contract says, and whether the buyer took any action when the delay became apparent.
Selby says builders have successfully argued if a buyer does not make their desire to get out of the contract known, they forfeit that right.
But Selby adds that laws like the Condominium Property Act and the Fair Trading Act create an obligation for builders, and buyers, to treat each other fairly and reasonably.
What is fair and reasonable also depends on the case. "It all depends on the circumstances and how the parties have carried themselves forward on it," says Selby.
The motivation for the purchase can also influence the result.
If the condo was purchased with the intention of becoming your primary residence, delays mean real hardship and court are more likely to give the buyer their money back.
But if you bought the condo as an investment the court might consider you on equal footing with the builder and force you to ride out the same bumps in the market as the builder.
Bucholtz says she doesn't have the money to take the case to court but there is some good news. She recently received an email from CPI saying the company is now considering her request for the return of deposit and contract cancellation.
