This family bought a house for $534,990. Now the developer says they have to pay another $175,000 to keep it
When developers ask for more, buyers have three options. They can eat the extra cost and hang on to their units. They can walk away and get their deposits back—with some interest—but it won’t buy them nearly as much house as it did when they first forked it over. Or, like Arkell, they can dig in. As the Sciavillas grew their business, they also brushed up against controversy. In 2014, Pace began selling units in Eden, a subdivision of 28 upscale detached homes in King City. To finance the project, the family partnered with a mortgage investment firm called Fortress Real Developments. Fortress advertised Eden as a low-risk, high-reward investment: if investors lent money to help Pace build the project, Fortress claimed, they’d enjoy healthy returns upon its completion.
Still, there’s something about tacking on an even $100,000 that doesn’t exactly scream “We’ve done our due diligence on cost increases and have the receipts.” Pace asked its buyers to pay more in part because it couldn’t secure what it described as “satisfactory financing” for Urban North, a common experience among developers during the pandemic. Even in normal times, there are few lenders willing to provide the kinds of sum required for subdivisions.
When Arkell reported his success to the Facebook group, he learned that other buyers were also off the hook for the extra $100,000. But some had already paid or collected their deposits. “People were angry, disappointed and frustrated,” he says. “Some people were talking about checking with their lawyer, and others couldn’t afford to hire a lawyer. They have all their savings tied up in this property.
Tarion is another govt run shitshow
AGDiCenzo Scammer badactor
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