Condo occupancy leaves Kitchener couple in financial bind

CTV’s Jeff Pickel hears from buyers who want out of a controversial condo deal due to safety concerns.

Owners of a Kitchener condo say they’re experiencing financial trouble after they were given the keys to a place they no longer want to live in following development delays and other issues.

Ana Stanivuk purchased a condo unit at Elevate Towers, at 1333 Weber Street East, in 2020.

Now, she’s facing a dilemma that could cost her upwards of $70,000.

Stanivuk said buying the condo was a positive experience – at least at first.

“It was a huge milestone, it was an exciting stage in my life,” she told CTV News, adding that she expected to move in by 2022.

It went downhill fast, however, when the project experienced serious delays. Then, in 2024, the developer ran out of money and a new development team stepped in to take over construction.

“In December (2024) I was asked to come to their office to discuss my options, like, am I interested in getting my deposit back,” Stanivuk said. “At the time I didn’t know what to say, so I said, ‘Let me think about it.’ But I did say to them, in the end, ‘I want my deposit back,’ very clearly… and what I believed is I was on the list to get my deposit back.”

She was surprised when the developer said her keys were ready.

“I was really confused by that because I was on the list to get my deposit back, and I called the representative back and. in my opinion, it seemed like he switched his tone a bit and said, ‘No, the developer actually has the right to decide,’” Stanivuk said.

ELM Developments said refunds were never offered.

“There is not, nor has there ever been, an option for buyers to have their deposit returned. Therefore, we have no knowledge of a list that exists. To date, we have provided extensions, issued mutual releases, and other flexible terms to buyers that have been either refused or accepted,” Ellion Steiner, president of ELM Developments, said in a statement to CTV News.

The City of Kitchener’s building department allowed occupancy in condo, meaning buyers were locked into their contracts.

Stanivuk and her partner, who are expecting a baby any day, still feel unsafe in the building.

“We have some concerns about where the buildings are. The hallways are filthy, there’s boarded up windows still. There’s leaks in the sprinkler system in the parking garage,” said Stanivuk’s partner Jordan Bezeau.

The couple’s options are limited, and potentially expensive.

Stanivuk could assume ownership of the condo, which is potentially worth far less that the $500,000 purchase price, or go into default.

Slonee Malhotra, a real estate lawyer with Sorbara Law in Waterloo, said the law does not look favorably on buyers who default.

“If you bought in 2022, for example, a sale price of $500,000 being used for a one bedroom condo, fast forward into today’s market that condo’s worth 400,000. So, using that example, the builder would be able to sue the buyer for the $100,000 difference, and the builder would also be able to retain the buyer’s deposit,” Malhotra explained.

She called Stanivuk’s situation very rare, but noted that buying a new build is not without risk.

“When the market is high, then investors and homeowners are happy,” Malhotra said. “But when the market’s low, they want to explore all the options in which they can get out of the contract.”