Updated: Fri Oct. 24 2008 22:18:24

ctvbc.ca

A major developer in Metro Vancouver is being investigated by an arm of the provincial government after CTV found it was still selling condos even though construction has been halted at the project.

It's a big name developer, which has been building in Metro Vancouver for decades.

On Thursday, the Onni Group of Companies which is behind the V6A condo complex near Main and Union streets in Vancouver -- said the project has been postponed. But when CTV went to the sales center -- we discovered the units were still being offered for pre-sale -- and perspective buyers were not being told the project was on hold.

Now B.C.'s Superintendent of Real Estate is investigating.

"We have contacted the developer and asked for an update,'' said L. Jay Mitchell, B.C.'s Deputy Superintendent of Real Estate.

"We've indicated they have to make an amendment to their disclosure statement,'' she said. "We're making inquires about the deposits and the status of the project

The situation at Main and Union has not escaped the attention of NDP Housing critic Diane Thorne.

"I could hardly believe what I was seeing and hearing on television,'' she said. "It's the best example I have ever seen of the lack of consumer protection in British Columbia."

Meanwhile, any new protection for presale buyers would start with the B.C. Finance Minister Colin Hansen.

"If there's way we can strengthen the regulation and the procedures developers must follow, we are certainly willing to take a look at those and if we can do it in a way that makes sense, we will certainly be ready to do that,'' Hansen said.

Asked if he will looking into the situation at Onni, Hansen said he likely will. "I will certainly be looking into this particular example to see what lessons we can learn from it,'' he said.

As for the future of the V6A project, on Thursday, Onni's vice-president of development Beau Jarvis said he wasn't sure.

"I wouldn't say there is a timeline at this point,'' he said.

On Friday, Onni's executive vice president Chris Evans called CTV News and said that while he doesn't know when construction will resume, Onni plans on finishing the project sometime in 2010.

He declined an invitation to do an on camera interview.

With a report from CTV British Columbia's Shannon Paterson

Please Add Comments(4)

Roland Zabel
If you can't pre-sell you can't meet the new financing criteria of 60-80% pre-sold before draws can be made from the banks. If you can't get money, you can't build. I see no problems with this story

linz
Re: Province investigating condo developer Onni.

This story is a testament to the negativity you spread on a daily bases. The fact that these condo developments are not been completed is a huge benefit to the people that bought in. Every one of these buyers will have their down payments returned to them. They have all purchased at the height of the market. If the project was to go ahead they would be living in the condo while watching the value of them fall. Instead they will get refunds and can buy in at a lower price in the future. Your reporting on this does not tell this side because it is a positive aspect. This is exactly why people are tuning off the lame ass negative crap you produce. It is lame of you Shannon Patterson to think of yourself as a reporter when you cannot look past your limited perspective and your stations need to create some sort of controversy where non really exists. If I was one of those buyers, I would be thrilled. Think of all the money I would be saving. Shame on you all.

JBurnaby
This story is strange enough, but the comments are just bizarre.

One writes, "I see no problems with this story". Fine, then send me a cheque for half a million and I'll build you a condo... sometime... maybe... whenever. See the problem? I think it's completely unethical for a developer to continue selling units in a building that may never be completed. If they put construction on hold, they should put sales on hold too.

Another comment says that the fact these developments haven't been completed "is a huge benefit to the people that bought in". Ummmm... not if they were actually planning to live there. Even if all the purchasers were speculators and property flippers, I'm not sure it's a benefit. How do you sell something that might not be completed? And where do you get the idea that these people are getting their money back? The developer never said that. Instead they may ask for more money from the buyers - as we've seen at other projects.

It's good journalism to shed some light on this matter, and hopefully we can get some real consumer protection legislation, so people can have some confidence when they buy in the future.

JamesNewWestminster
This story and the related comments by viewers will be standard fare from now on. The outright greed of the past few years is now hitting the fan. I read a lot of local real estate blogs and info (which is insider information available if you want it). The tone of real estate professionals and everyone else is rapidly becoming nastier by the day. Bravo CTV for informing the general public. Please continue to do so. I personally know many friends and acquaintances that are facing real estate troubles but I don't have the heart to tell them. Hopefully they are watching CTV and can get the message.