[PAR35]

It does NOT take 2-3 years to build a Condo....this is pure bull.....

I think you pegged it. My guess is that the lender required the developer to pre-sell a certain percentage, and now that the market has softened, some of purchase contracts aren't looking too good.

[Alberta's Child]

One of the real estate rackets I just heard about today involved a condo developer who needed to pre-sell something like 25% of the units in his proposed project in order to secure bank financing.

So he went out and got several wealthy investors in town to "buy" a bunch of units up front, with the understanding that they'd be bought back once the financing package was finalized.

I'm thinking of putting in a bid on one of these units for about 50% of the listed prices.