What Buyers can Learn from the Urbancorp Collapse?

  • Remax-Condos-Plus
  • 25 May 2016

This week we want to comment on the failure of Urbancorp as a significant condo developer in Toronto and it being forced into Receivership.

Some think this is the start of a condo correction. The reality is the opposite. Urbancorp never had a good reputation in the real estate community. Their demise means that there will be even less available condo product, which will only tighten the real estate market.

We feel sorry for buyers who have construction problems, and lengthy delays in getting title to their property.

The lesson to be learned is obvious. Even in a bull stock market, there are shares that hit lows and companies that go bankrupt. That’s why people use stock brokers. In real estate the same is true.

Buyers need to deal with experienced agents who know all the builders and all the projects. When buyers go to a sales centre on their own, they deal with a representative that only works for the developer. Why would a buyer not hire an agent? There is no cost to them. You then have someone working for your best interests to find the best deals from the best developers. You save yourself time, money and aggravation. Another lesson for the ‘do it yourselfers’