Among the claims in the lawsuit are that Jurock’s Real Estate Action Group provided purchasers with marketing materials stating that the purchase price of each unit promoted to investors was about $10,000 below the appraised value. However, Jurock and his associates allegedly did not have appraisals to back that claim, said the lawsuit.
The properties were strata condos in Prince Rupert, BC, known as Roosevelt Heights Apartments.
A letter in 2009 by Alex L. Eged of Richard Buell Sutton LLP, representing the defendants in the case, responded that no misrepresentation occurred, however.
“Roosevelt was presented as a 40-year-old development that had significant building envelope components replaced after 20 years, was in fair condition, and was free of material defect,” said the letter. “It was not presented as a new and perfect development with absolutely no problems, defects, or need for maintenance and with guaranteed budget and cashflow statements. No reasonable or honest purchaser would purport to have been told or lead to believe the latter.”
On its website, the Real Estate Action Group states its Weekends event has been “going strong for eight years with over 3,000 students and hundreds of millions bought and sold (and millions made) in real estate investing.”
But some plaintiffs highlighted in an article in The Province this week said what they bought did not match what was promoted to them.
“It was just sold that these were going to be amazing properties with cash flow,” said Jennifer Dom, a North Vancouver accountant who is part of the lawsuit, told the newspaper. “This was going to be great for us newbies.”
The paper said Dom paid $73,000 for a condo in the 42-unit apartment complex, but said she and others now face a bill of $35,000 for repairs to the “100% leaky condo building.”
The lawsuit said the four buildings in the complex were “free from material defect” but engineering review later uncovered extensive repairs were required.
None of the allegations have been proved in court yet, however.
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