Skip to main content

Article on Bill 40 Windups

There was an article in the Globe and Mail published Friday, July 7 pointing out some of the intense financial conflicts that have arisen in Bill 40 windups. The same problems that we have warned other owners about with respect to Bill 40 windups are, unfortunately, leading many stratas into ever more complex, costly and time-consuming litigation. The article refers to issues that are limited to a single strata situation. With AP having three stratas, the litigation complexity and costs will be substantially higher if a Bill 40 approach is used.



As noted in the article, the potential financial conflicts were not understood by owners when they purchased their units as, until now, windups and assemblies were extremely rare due to the then 100% agreement required.

I would urge those reading the proposed contract put forth by Ed Wilson to review that proposal in light of both the potential and actual conflicts it already contains. Owners may wish to consider the impact of those conflicts on complexity, cost and potential litigation.

The assembly method remains the only approach that avoids the complex litigation and related expenses to participating owners. While it is not a guarantee of success, it does guarantee that we will not bear any of the expenses involved in dealing with the conflicts detailed in the article or those that exist within the AP development.

Comments

Post a Comment

Popular posts from this blog

Welcome to the official Anchor Point Assembly Committee blog!

TO ALL OWNERS IN THE ANCHOR POINT TOWERS: At the recent Anchor Point BBQ presentation, we were asked to speak as an “owners panel” as we cover a cross section of owner interests as our panel of 3 owners include residents, investors and commercial business owners across all three towers. At the presentation, we explained to the other owners at the meeting why we had decided to sign Listing Agreements with Klein Group. The feedback at and after the BBQ event was that our owners panel was helpful in explaining our decision to other owners, clarifying questions and encouraging dialogue. We were asked by several owners to continue to provide help and leadership going forward with the assembly process. Therefore, we have organized ourselves into the official Anchor Point Assembly Committee (APAC) .  We are dedicated to moving the assembly transaction forward in a positive way without aggression.  We invite all owners who have signed Listing Agreements with Klein ...
4 comments
Read more

Lender Confusion About AP "Wind Down" and Impact on Mortgage Renewal

I received the following message from an owner that was seeking to refinance his AP unit: "I thought I would share a recent experience regarding our potential sale of the property. We are renewing our mortgage for one of our units and looked at moving to another lender. They had an appraisal of the property completed and the appraiser noted that the local media has reported that the strata has voted to 'WIND DOWN' the strata corporation and potentially sell to developers.  The MLS listings for units in the complex indicate: 'Great investment. Potential Anchor Point Land Development proposals in the works. Priced below the proposed offering prices. Buy today and hold.'  This report assumes that the subject is in transition for development and as such has approximately 5 years remaining economic life. Redevelopment in the foreseeable future is highly likely." The owners challenged this appraiser's interpretation of events. However, t...
Post a Comment
Read more