When buyers launched a class-action suit against a developer that cancelled a preconstruction condo project, they argued that they should be awarded damages reflecting the lost increase in value of their units. (adsbygoogle = window.adsbygoogle || []).push({});> But the court recently dismissed their class action case in Ritchie v Castlepoint Greybrook Sterling Inc, and the details of that ruling are a good reminder that buying preconstruction is always a “buyer beware” situation. Lost Money Most, if not all, purchase agreements include an escape clause for the builder, which allows them to stop construction for reasons such as being unable to secure financing. They also include provisions for preconstruction buyers to get their deposit back, often with interest. But years go by between the buyer putting down a deposit and the building being built
