Posted tagged ‘Condo Contracts’

Another Dumont Contract Holder’s Story

September 27, 2008

I recently asked if any members of the Dumont Condos Contract holder’s group wanted to share their story on this blog in addition to ours. I received this post.

My wife and I both lived and worked in Alexandria Virginia and always enjoyed coming to the district for the culture, sights, and dining.  When my wife landed a fellowship at Bethesda Naval hospital we thought it karma — we needed a place located between Bethesda and Alexandria and the Chinatown/Gallery Place metro location was perfect.  The plan was we’d walk to the metro and she’d get on red and me yellow.  This was around winter 2007.  We found the Dumont and it seemed perfect.  Seth from McWilliams-Ballard was the perfect gentleman and, in retrospect, said all the right things.  He told us we should “move fast” because they were just weeks away from moving the sales office into the building and when that happens there’s always a “spike in sales”.  This was January 2008 and the target date for occupancy, we were assured was April.  Of course April turned into May, which turned into June, etc, etc.  I phoned the office atleast weekly and every couple weeks we’d go to the worksite to check on progress.  Often we’d run into Seth who’d always give us the vague, yet reassuring estimate of “any day now.”  My wife’s fellowship began in June and with her demanding schedule there was no way she could commute from Alexandria to Bethesda.  So we moved into an apartment with a short-term lease (re: premium of $400/month).  It was for 90 days and I thought to myself “I’m going to end up closing on Dumont and having to pay a month of rent too.”  I told Seth we were on a 3 month lease and he told us “No problem, we’ll start closing in a few weeks and I’ll just put you at the back of the line.  We can slow-roll it and make sure it’s timed with the expiration of your lease.”  He said to just make sure you “..work with me closely on this because sometime things slip through and the closing agent will call you directly.”  “I’ll hand massage this”.  We were confident we were in “good hands” and that things were still on-track based on reassurances from Seth.  I figured we’d made a good decision because it seemed things were progressing really slowing.  We went down there on Labor Day weekend and noticed no one was working.  Construction is all about time and money and it concerned me no one was working over the holiday which indicated they weren’t in any paricular hurry.  While we were there we ran into Seth.  I said “Seth, I thought you weren’t working this weekend, I called the sales office and the recorded message said they were closed.”  He told me that was because they were in the process of moving the sales office into the building.  And, “Oh by the way, I don’t work there any more, I work at Remax.”  I thought, great!  He was suppose to work this personally to ensure we weren’t called to closing too fast and have to pay on my 3 month lease and a mortgage.  I thought, whatever, people have lives and I’m sure there are more important things for him to worry about than me.  He just had a job change and the last thing he’d be thinking about was us.  Afterwards, I would call the sales office and get a recording that told me they’d moved to “425 Mass Ave”.  For two weeks I left messages and no one would return my call.  Finally, I went down to the worksite.  The building was wide open and a few workers were milling around planting mums or something.  My wife, her dog, and myself walked around the building looking for the sales office.  No one approached us.  That’s when it struck me “We’re screwed!”
 
Despite all this I’m still a big believer in Karma. 

Dumont Condos – More Than Words

September 20, 2008

First, contract holders get a letter saying the sales team has been terminated. Second, real estate listings for the building are pulled. Now- no work is being done at the Dumont. We live across the street and there is always work being done on Saturday. Today – NOTHING! Silence.

Anyone have more details to share?

3 More Contracts Walking Away from the Dumont Condos

August 27, 2008

The District Chatter has learned that 3 more condos have requested their refund back after later delivery from the Dumont Condominium project. That makes a total of 8 contract holders that are requesting a refund. This group of contract holders are currently working with attorneys to file a lawsuit.

This number does not include contract holders that are going to request their deposits back or walk away from their deposits because they are tired of the poor treatment at the Dumont, unable to sell current properties, or were unable to renegotiate with the Dumont for a better price.

Dumont Condos – Our Story PT II – The Lost Chapter

August 18, 2008

I almost forgot about options time. This fits into the time period of our Dumont Story Pt. II so, Here is an extra tidbit.

Many of my conversations with Seth Barkman at the Dumont Condos/McWIlliams-Ballard sales office were fascinatingly blond since he never seemed to have an answer to a question. One of my favorites was when he told me I was annoying (yes, I have witnesses to that). I am annoying, when I ask a question, I want an answer. If you are earning commission off something I am buying, earn it.

Anyhow, we asked numerous times about options and no one ever had a clue when it would be. According to the contract, contract holders had up to 30 days from their first written notice to select options before the developer would make a choice for them. Somewhere around December 15, 2007 we received an email from Seth saying we needed to select options before December 30th or the developer would do it for us.

When we arrived we went with another contract holder at the Dumont who is a friend of ours. We pointed out to Seth that they were violating their own contract by not giving the 30 days the contract promised. He asked us not to mention that to anyone else. We also refused to sign a clause that they tried to slip into the options agreement that said they had until June to deliver the units. We did not agree to this clause, because we felt 2 years was long enough. 

I just wanted to be sure everyone understood that the developer themselves violated the contract and they have many contract holders that are talking about getting out.

Stay tuned for Our Dumont Story Pt. III AND a special article from the Washington Post that explains how contractor delays, etc. do not fall under force majeure and courts do not uphold such as a reason to keep a deposit.

Dumont Condos – When Contract Holders Say Bye Bye

August 14, 2008

So what happens when 10 contract holders suddenly walk away from a condo project? I know of 4 contract holders at the Dumont that have requested a refund due to late delivery. The Dumont says they have several months of delays. They also acknowledge they can not prove these delays. 

There are also another 5-6 contract holders that report a non-responsive Dumont sales team.

Seth Barkman, Kurt Reischik, and Kristen Horst have suddenly become non-responsive in the past couple months to anyone that is not a potential purchaser. It may seem like a good plan to them to only focus on new contracts, however a developer needs to keep its current contract holders.

People may be ready to fight for their money. Not good for publicity. Some people may be in a financially better place to lose their deposit than follow through with their contract. Can the developer really afford to wait for the sales team to resell 10 units when they haven’t been able to break 50% sold in the past 2 years as it is?

Are any other condo projects facing this dilemma? It looks as if Madrigal Lofts and City Vista adapted to make their places more affordable.

Dumont Condos- Our Story Part I

August 14, 2008
Dumont Construction April 15, 2006

Dumont Construction April 15, 2006

Since this could become a long post, I will tell our story with the Dumont in parts. This is a story of 2 guys excited by the opportunity to purchase a unit in a beautiful building with a truly awesome view. It is also a story of change. Changes in the housing market, changes in the attitude of sales people toward their customers, and changes in what the customers will accept from developers and sales people.

Part I

In April 2006, we attended a sales kick-off event at Jaleo for the Dumont Condos. We were wined and dined as potential customers of this development. We loved the floorplan for the 2 bedroom, 2 bath unit. We made an appointment to see the sales people on day 1 of sales.

We agreed that if the unit we loved was available on the top floor and under a certain price we would sign a contract. The unit was available and below the price we had expected. We went for it. At the time we thought we would be able to sell the condo we were living in for $560,000.00 in 2008. We based this on how the market was performing at the time.

We signed a contract on April 8, 2006 for a 2 bedroom and 2 bath unit at the penthouse level for $723,900.00 plus $70,000.00 for 2 parking spaces. A grand total of $793,900.00. We were excited and kept in touch with the Dumont sales team. Kristen Horst and Kurt Reischik were the sales people we dealt with and they treated us well.

Then things began to change. . .

To be continued…

Dumont Condos – A Few Words

August 12, 2008

I have noticed that I have been getting a lot of hits on my Dumont Condos posts. I want to make a few things clear.

I believe and few people would disagree that the finishes in the Dumont are great. The renderings make it look like it will be a great project when it is finished. That is all I can say about the quality of work and the building.

The sales team was fabulous when we first signed. As time went on we started finding it difficult to communicate with them. Especially, when we asked to renegotiate.

I will leave out the details of that process, because we currently are not planning to move to the Dumont. We REALLY wanted to, but with the market how it is we will not be able to sell our current home for the price we expected to get when we signed the contract 2 years and 4 months ago.

We were never made aware of any specific delays with the Dumont Condominiums, but they are 4 months late on delivery. We have been photo documenting the construction. We are finding it difficult to believe they will provide evidence of more than 4 months in delays that they should have informed us about anyway.

If you have the money to move to the Dumont go for it. It is gorgeous. We already live in the neighborhood, so we know how great it is.

Use caution- read your contract. Check comp prices for units in the area similar to what you want.

Other buildings in the neighborhood that have units for sale are:

City Vista
Madrigal Lofts
The Sonata
400 Massachusetts Ave.

You may even consider Yale Lofts if they have units available still. Their location will be more attractive once the Safeway and other retail opens at City Vista.