After reviewing several sales that are being contested by put-out investors, regulators said there would be no immediate action taken, offering no further details on the decision beyond a simple, one-sentence statement: "The extension has been made to allow more time for Talon to respond to recent inquiries made by the Ontario Securities Commission."
Talon has extended the closing date until today, December 13 from November 29, as investors scramble to find financing for units they put deposits down on years ago. Over a dozen investors have tried to get out of those deals, claiming their petition for financing has been denied by every major Canadian bank. According to investors, the banks are treating the project as a commercial property, therefore disqualifying it from condo financing.
The OSC made it clear that units in the Trump were not marketed as cash-flow properties, but according to investors, sales representatives pitched them as just that. But according to real estate mogul Brad Lamb, investors should have done their legwork on this type of investment before signing on the dotted line.
"It never was residential and it never was going to be residential,” he says. “And anyone who bought one of these, if they'd done the legwork, they would have known that.”