Condo developers are offering big discounts inexchange for signing NDAs

As published in The Globe and Mail

By: Erica Alani featuring Leor Margulies & David Taub

Some developers are offering significant discounts on new condominium units in exchange for buyers signing non-disclosure agreements (NDAs), as they look for ways to reduce unsold inventory without affecting publicly reported market values. While the practice can help developers move units in a challenging market, it also raises questions about pricing transparency for prospective buyers.

"In this slow market, builders are often ready to explore creative solutions to avoid condo buyers defaulting on units or to reduce their inventory of unsold units," said Leor Margulies, a real estate lawyer at Robins Appleby LLP. David Taub, a litigation lawyer at the firm, noted that although buyers who breach an NDA could face legal action, the high cost of litigation means such agreements often serve as a deterrent rather than leading to lawsuits.

Read the full article in The Globe and Mail.