As seen at urbnlivn.com, Enso will delay move in for their contracted buyers. This is a constant in new construction and will probably never change. Like other local projects (i.e. Equinox, One Main etc…..) this can create a serious problem for developers retaining the Earnest Money that acts as a deposit between the Buyer and the Seller.
In most contracts, the Seller has a 120 day window to extend the closing date. After that 120 days, the Buyer is given the right to accept the extension of the closing date. If they choose not too, the Buyer can request the Earnest Money, rescind the contract and can move on to another project or choose to change their directives for purchasing.
Extending a contract is never a goal for a developer. It is often out of their control as well. They have to order their materials, work with a handful of sub-contractors and balance the requests of the city. At the same time, a smooth construction schedule and a balance of 120 days should be enough. It is important for the developer to deliver these units on time. Many buyers find themselves frustrated at the numerous extensions and broken promises.
The disputes over the extension of the closing date will always exist in new construction for condominiums. I just hope that stability in the market will bring a higher level of service and communication between the developer, the sales team and the buyers. It’s better for our market as a whole.
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About jeff
Except the Enso closing delays have NOTHING to do with the building’s construction. It’s complete, and has been for months. They just can’t sell enough units or convince old contracts to resign at the new terms.
Chris,
You make a valid point. Its obvious that their is a problem with projects right now in terms of their “value add” and justifying a price that the market will absorb. It shouldn’t surprise anyone that during a depressed market, many buyers will gravitate towards the homes and townhomes that they couldn’t afford before. Thus leaving condos as a secondary choice. On top of that, those interested in condos don’t care to spend the $600-$1000 per square foot that these projects are asking. A stable market in the future will be one of more acceptable pricing.
At any rate, thanks for tuning in.