Mar 8, 2025
Alarming trend: Canadians are finding themselves unable to follow through on pre-con real estate purchases. So, what happens if you can’t close on a pre-construction real estate deal?
In this episode, the
co-founders of Hoyes Michalos break down the reality of
pre-construction deals in Canada, including assignment sales, how
rising rates and blanket appraisals impact your deal, and what
happens if you can’t secure financing. They also explore the legal
and financial consequences of “walking away” and whether solutions
like a consumer proposal or bankruptcy might apply to your
situation.
Walking Away From
a Pre-Con Deal with Consumer Proposal
What To Do When You
Can’t Close
The Real Problem
with Pre-Con Deals by Doug Hoyes LinkedIn
(0:00) – What is a pre-construction deal in real
estate?
(3:30) – What is an assignment sale?
(5:15) – Trends in Canadian pre-construction real
estate deals
(8:00) – “Blanket appraisals” and why they
matter
(11:45) – The financial and legal consequences of
“walking away”
(13:00) – Timing issues and pre-con purchases
(14:00) – What happens if interest rates go up or
down before your closing date?
(17:00) – When builders run into problems — how it
affects you
(20:00) – Practical steps if you can’t close on
your pre-construction home
(22:00) – Can a consumer proposal help you walk
away from a pre-con deal?
(26:00) – Are you at risk of being sued by the
builder?
(28:00) – Bankruptcy: when it becomes an option
for pre-construction buyers
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Disclaimer:
The
information provided in the Debt Free in 30 Podcast is for
entertainment and informational purposes only and is not intended
as personal financial advice. Individual financial situations vary
and may require personalized advice from a qualified financial
advisor. Always consult with a financial professional. The views
expressed in this episode do not necessarily reflect the opinions
of Hoyes, Michalos & Associates, or any other affiliated
organizations. We do not endorse or guarantee the effectiveness of
any specific financial institutions or strategies
discussed.