January 26, 2009 – It looks as though a number of dissatisfied buyers of pre-construction Chicago condos at the Piedmont Group’s GlasHaus development are frustrated enough over construction delays to throw verbal stones. Actual construction on the 25 story, 1327 South Wabash Avenue tower has yet to start and so far only foundation work has been accomplished. Now some who signed a contract for one of the 262 units now want out.

According to a write up in Crain’s, buyers who purchased one of the one to three bedroom condos at this Chicago real estate development in 2006 were told by the developer that full construction would start in early 2007 and they would be able to close on units sometime in the later part of 2008. But that date has been rolled back more than once, and the Crain’s article profiled three buyers who put down $24,000 on a $440,000 condo in one case, $18,000 on a $361,900 condo in another example and $16,545 for a $330,990 condo in another instance.

All three buyers would like to get out of their contracts because of delays and need the earnest money for another condo or to live in their current home until units at Glas Haus are ready for delivery. The developer has issued a statement saying that due to the market, the project has been delayed but not canceled and at the earliest it will be late 2010 before condos are ready for move-in. Piedmont claims they will work with buyers, but those interviewed in the article said that so far they haven’t been able to get out of their contracts. Some contracts will include a “drop dead” clause that gives the buyer the right to have his or her deposit back if the condo isn’t delivered by a certain date, but Glas Haus didn’t automatically have that written into their contracts.

Buyers need to be aware of the potential risks in purchasing Pre Construction Condos in Chicago during a downturn in the housing market. Having an attorney look over your contract is a very good idea.

[tags]Glas Haus, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Monday, January 26th, 2009 at 3:00 pm and is filed under Mortgage Information.