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Alberta residential real estate: Builder goes bust

One of the biggest home developers in Wild Rose Country has closed its doors, leaving many unfinished homes in a neighbourhood outside Calgary. The Alberta residential real estate developer lost a court request recently for the restructuring of its debt and went into receivership to the tune of $64.6 million. Some buyers have already taken possession of the homes that were completed, but are having some issues the builder said it would take care of.

Those whose homes were completed are among the lucky ones. The buyers whose homes sit incomplete are unsure what will happen to their deposits. Meanwhile, other contractors have put liens on some of the properties. Purchasers have been told that they won't be getting answers to all their questions until any assets of the builder have been sold off.

New home warranties usually don't cover deposits or downpayments. Neither do they safeguard purchasers from any liens placed on their properties because builders failed to pay the bills. Purchasers will find the particulars of their individual cases in the contracts they signed with the builder.  

In cases like these Alberta residents would be wise to get the advice of a lawyer regarding any downpayments or deposits. A real estate lawyer will be able to offer guidance in the steps to take regarding funds already invested in these residential real estate transactions. A lawyer will offer legal insight into real estate transactions that have gone sideways and go over any signed contracts to further assess a purchaser's right to legal recourse.  

Source:, "Half-finished homes and lots of questions after Alberta homebuilder goes into receivership", Sarah Lawrynuik, Nov. 4, 2017

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