A condo developer in the Big Smoke is seeking creditor protection. Forme Development Group Inc., known at one time as Time Development Group Inc., failed to make payments on about $220 million in debt, leaving those who shelled out down payments on condos in a financial lurch. Two more real estate projects of the company are on shaky ground as well.
Court documents show that Forme started missing many mortgage payments last fall and applied for protection from its creditors in November. The company began to pre-sell condos for a mid-rise building in Toronto in 2015, and about 279 units were planned, starting at $179,000 each. It's not certain how many units of that particular build were pre-sold; however, it has been estimated that the companyowed real estate brokers about $392,00 in commissions for those pre-sales on that project alone.
In addition to Toronto proper projects, Forme had dozens of companies spending about $154 million between 2014 and 2017 to buy land in Markham, Aurora and Niagara Falls among other locations. The company's buying frenzy was halted last year as projects faced countless delays. The company owes millions of dollars to banks, credit unions, alternative lenders and individuals alike.
An Ontario lawyer can assist buyers and sellers of real estate in several ways, one of which includes going over contracts. He or she may be able to help buyers to be better protected from such devastating events as losing sizable amounts of money, by making certain that contracts protect them within the legal means of the law. It is better to be safe than sorry in the long run.