The Allegations Against Thind Properties
On Friday, a lawyer representing Kingsett Mortgage Corporation accused the developers of three troubled Lower Mainland condo projects of misusing funds intended for the Canada Revenue Agency. However, during questioning from Justice David Masuhara, it was clarified that these accusations did not carry criminal implications.
Smooth Proceedings with a Receiver Appointed
Despite the minor misunderstanding, the legal proceedings went smoothly, resulting in the appointment of a receiver for unsold units in Burnaby’s Highline completed condo building and Richmond’s stalled Minoru Square project. These projects collectively hold mortgages worth $250 million, and defaults dating back to September are now accruing interest at a rate of approximately $70,000 per day.
This recent order follows Masuhara’s decision to place Thind’s District Northwest project, a large complex in Surrey, into receivership after the developer defaulted on an $80 million mortgage related to that specific project. Although Thind is the developer, the legal actions are directed towards the companies and partnerships formed for each project, all of which are ultimately controlled by the same individuals.
Implications for Pre-Sale Purchasers
The fate of these projects has attracted significant media attention and raised concerns among pre-sale purchasers regarding the status of their units. It was clarified that occupied units at the Highline are not at risk, and the receiver does not seek control over them. At Minoru Square, 90% of units at District Northwest had been pre-sold, with $78 million in deposits secured by a law firm, according to Daljit Thind’s affidavit.
Despite delays in construction, Thind expressed confidence that the deposits for pre-sold units are not in jeopardy, as they were sold below market value. The receiver intends to market and sell units at the Highline at the previously agreed prices set by the mortgage company.
Legal Battles and Financial Claims
Thind Properties did not respond to the application for a receiver, while the Highline’s strata corporation, responsible for common property and assets, claimed over $1.1 million in unpaid fees from the developer. These liens are said to take priority over the mortgage.
Aside from financial disputes, a series of lawsuits have emerged, including claims from workers, contractors, and a real estate agent seeking compensation for their involvement in deals related to the Highline project. These claims range from unpaid fees for construction work to commissions for unit sales.
FAQs
- What is the total value of mortgages across the three troubled condo projects? – $250 million
- How much interest is accruing daily on defaults dating back to September? – Approximately $70,000
- How many units at District Northwest had been pre-sold? – 90%
- What is the amount of deposits held in trust for pre-sold units? – $78 million
- What is the total amount claimed by the Highline’s strata corporation in unpaid fees? – Over $1.1 million
Conclusion
The legal proceedings surrounding Thind Properties’ troubled condo projects highlight the complexities and challenges faced by developers, mortgage companies, and pre-sale purchasers in the real estate market. With significant financial stakes and legal disputes at play, the outcomes of these cases will have far-reaching implications for all parties involved.