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Real estate projects in financial difficulty: Article III

Wednesday, May 17, 2017 @ 8:50 AM | By Daniel Weisz and Arif Dhanani

A real estate developer deals with a number of different parties, including the developer’s trades, the local municipality, secured lender(s), purchasers and in the case of a residential development, Tarion Warranty Corporation (Tarion). When a developer is insolvent and a court-appointed officer (CAO) takes possession of the property, the CAO addresses the various interests of the developer’s stakeholders as it works to maximize realizations from the project.

Scenario 1 – Project is incomplete

Where a project is incomplete at the time a CAO is appointed, the...