A B.C. Supreme Court justice has ordered owners of a luxury waterfront condominium in West Vancouver to hand back a half-million-dollar deposit after a real estate sale collapsed.
Both buyers and sellers launched lawsuits after the $5 million deal for a 3,300-square-foot condo, which took up the entire 11th floor of a West Vancouver apartment tower, fell apart in the summer of 2012.
Owners of the condo, Margaret and John Chaston and Helen Chauvin, sued the buyer, Rosa Este, for not completing the sale by the completion date, arguing they should keep the $500,000 deposit.
But Este told the judge she found the condo had significant problems she hadn't been told about, including mould growing in the walls and potentially serious water damage. She added the sellers had refused to let her see the suite prior to completion to ensure work needed on the unit had been finished.
The judge agreed with the buyer, saying she "should not be expected to hand over approximately $5 million without a closing inspection. This would be analogous to purchasing a dozen eggs without an opportunity to first open the carton to ensure none are broken."
According to court documents, when Este first viewed the apartment in April of 2012, it had been freshly painted, professionally staged and "There was no evidence of water or mould damage."
Este was told by the real estate agent the building was one of the most sought after in the area and there was no significant water damage or mould. The agent added any work required as part of building remediation would be finished by the end of July.
She made an offer for $5.15 million, with a closing date at the end of July 2012.
Este had an inspector look at the apartment with her, and asked for all reports related to the condominium.
One report, however, that referred to significant water damage to the brick was never provided to her.
She also did not see subsequent reports by Pacific Environmental Consultants that pointed to "significant" fungal growth in the apartment, and recommended wall cut-outs and chemical treatment.
Este said she visited the apartment in June after making her offer and was shocked to find exposed wood around the windows showing signs of black mould and rot.
She demanded further access to the suite before closing the deal to ensure the water and mould issues had been dealt with.
When the sellers refused, Este cancelled the deal.
Justice Stephen Kelleher ruled last month she was entitled to do that and get her deposit back because the apartment was not in "substantially the same condition" as it was when Este had viewed it earlier.
