For the record: I don’t have any clients who purchased a unit at
1 Bloor. Also, I haven’t purchased a unit. That’s right, I’m not the unnamed mystery person who supposedly offered $25 million for a two–storey penthouse suite. And yet this project intrigues me.

So what’s my interest?

Toronto’s 1 Bloor Project
Has A Familiar Vibe

It’s not that Torontonians haven’t seen line-ups at real estate sales centres before, with the obligatory flared tempers and frayed nerves. But this was just something … raw … out there for all to see on one of Toronto’s most famous streets. When it got all slappy out on Bloor Street, as captured by local tv crews, that got my attention.

If you follow my blog (and you should!) it’s no secret that I’m quite interested in the dynamics surrounding Toronto bidding wars and the underpriced listing. It’s the underlying motivations and drivers, what compels people to compete when the competition is out of one’s league, or to stand in line for days for the opportunity to buy, only to see the pre-construction prices jacked right before their eyes, that I find so interesting.

It’s All About A
Toronto Opportunity

The “Opportunity Factor” always draws me to this type of story. That people see opportunity and make the effort to get what they want. These people aren’t the buyers who dream of buying. They’re the buyers who buy (or at least try to buy). I admire their drive. I wish them well!

However, I just wish that more Toronto buyers could see that if the price is unexpectedly  “right”, chances are the price is unrealistic and designed to generate a bidding war. Why not find a neighbourhood that’s actually in your price range and make something wonderful happen for you (I know!)and not just for the seller of the underpriced listing who benefits from the buzz you help create.

And for those buying condominiums from floor plans reviewed in sales offices, as appealing as the location, pre-construction prices and anticipated (stratospheric) bump in market value can be, never forget that unforeseen circumstances can affect even the most reputable developers; so much can transpire between the time you sign your offer to purchase and the day you book your elevator for move-in. It doesn’t always take something as drastic as a global financial meltdown to cause a developer to delay or cancel a project. Do you know what to expect when delayed closing and occupancies occur? And while you’re contractually obligated, have you missed out on other opportunities?

Check back for What’s My Interest, Part 2, …

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In the case of my 1 Bloor post, it appears many people are interested in the deposit and project cancellation aspects of this story. Perhaps it’s their own deposit they’re concerned about, or they know a buyer who’s anxious about the project’s future, or the vacant lot at the corner of Yonge and Bloor just intrigues.

Whether you’ve bought at 1 Bloor or another site, it’s important to understand what happens when a builder must delay firm or tentative closing dates. It’s kinda … painful.

Can Toronto New Home
Buyers Just Say No?

Most important: When you buy new from a builder, it’s a very different world from buying resale. And I suspect that many buyers assume the processes are pretty much identical until something crops up that makes it very clear they’re not.

For example, in a resale situation if one of the parties wants to delay the closing, an amendment can be done if both parties agree to the change and the terms. Or not, if an agreement can’t be reached.

And that’s a HUGE difference.

With a new home purchase, the manner in which delayed closings and occupancies are handled are set out in the warranties the builder must provide to buyers at the time the purchase agreement is signed.

Yes, buyers are required to sign Addendums at the time of purchase (so you’ve been informed) but in the excitement of the purchase how many buyers want to consider their house or condo might be delayed, or that the project itself might be cancelled, much less the serious ramifications of those delays and/or cancellation?

And if things do take an unfortunate turn, it can be especially upsetting when buyers realize that they’re living in a mostly one-way world of complex written notifications, termination periods, (possible) delayed closing compensation, and changed dates by mutual agreement with possible waived compensation.

Understand Your
New Home Warranties

Is a new home purchase in your future? If so, the Tarion web site provides information about the warranty coverage builders are required to provide to their customers. Be sure to check out Understanding Delayed Closing and Occupancies for detailed information about what happens when a builder can’t meet firm or tentative closing dates. You need to know.

And remember, if a new home or condo is in your future, and you decide to negotiate your offer without the assistance of a real estate agent, you’re the only one representing your interests at the table.

Related Post:

Can Ya Dig It? Standing On The Corner Of One Bloor Street East

Toronto buyers and sellers! Are you looking for a Toronto real estate agent who’s in tune with today’s challenging market? Call Lauren at 416–550–6991, or send me an email.

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Every so often I’ll try to impose some organization on my “works-in-progress”. It doesn’t surprise me that as time marches on, I’ve totally forgotten about some really interesting Toronto real estate stories.

Something’s Missing
At Yonge and Bloor

Case in point: I’ve always been intrigued by Bazis International’s
1 Bloor project. Last November I took some photographs of the site, located at the south-east corner of Yonge and Bloor. My intention was to post an article that discussed whether the recent downturn in the Vancouver condo market foreshadowed trouble for Toronto condo projects.

I started but never finished the article. In fact, here’s how far I got:

>>>It’s hard to believe it’s almost a year ago that people were pushing and shoving one another on Toronto’s Bloor St., frantic for the opportunity to secure a unit in one of the hottest condo properties then being promoted to investors in the Toronto real estate market.

Fast forward to earlier this week, when I was driving along Bloor St., doing a fine job of weaving around the dumpsters, traffic pylons and work crews. Undeniably, that’s one hot mess to navigate, although I did make great time from Sherbourne St. over to Avenue Rd. Go figure!

But what always catches my eye is the site for the still-to-be-built 1 Bloor project. The pushy line-ups are, of course, long gone and demolition of the site appears to be complete. While acknowledging rumours, the project’s architect has assured the current economic slowdown won’t jeopardize the project. Construction is expected to start this month and will take about 40 months to complete.

It will be interesting to watch this luxury project unfold.<<<

And it has been.

What’s Next For
Toronto’s 1 Bloor Project?

This project intrigues. The luxury. The line-ups. The lack of concrete! If you’re wondering what’s happening with this project, the June 2009 issue of Toronto Life has an interesting article, “A Whole Lot of Nothing”, about the 1 Bloor project. Lehman Brothers is on title, thus its collapse last September had a HUGE impact on the project. Will the project find new financing or fail? According to Toronto Life, on June 15 Bazis enters into a 31–day period during which they can notify buyers that the project is cancelled, and return the deposits held in trust by a law firm. If the project isn’t cancelled during that period, the deals become binding. And then it becomes really interesting.

As the clock ticks down, I thought I’d share the photographs I took that day.

[Show as slideshow]

[View with PicLens]

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