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Real Estate


The Trump Tower’s developer tries to subdue angry buyers—by suing them

Trouble keeps cropping up for Talon International, the developer of Toronto’s Trump International Hotel and Tower. First, sales of luxury units were slower than expected, and then there were a couple of pesky issues with falling glass; now, the company has launched lawsuits against buyers of condo-hotel units to force them to close their deals. Since February, dozens of investors have tried to renege on final payments and get back their deposits. They say their agreements shouldn’t stand because costs like maintenance fees and property taxes are far higher than Talon’s projections (one pegged the hike at 40 per cent) because the hotel, whose revenues were supposed to offset those costs, is underperforming. Talon is hoping the court will rule that buyers were responsible for assessing the risks of the purchase before signing up. The bigger question remains, though: Will Donald find a way to turn this controversy into a reality TV show? [Toronto Star]