The month before Vancouver social media management company Hootsuite laid-off more than 100 workers, the CEO agreed to buy a British Properties mansion for more than $7 million.
However, the transaction fell through and Ryan Holmes is suing the real estate agency and seller for full payment of the deposit.
“The seller repudiated the contract, the purchaser accepted that repudiation,” according to the Sept. 3-filed B.C. Supreme Court lawsuit against Team 3000 Realty and seller Guo Zhu He. “Pursuant to the contract and the addendum, the full amount of the deposit is due and owing to the purchaser.”
The court filing alleges the March 9 contract said Guo agreed to sell 915 Groveland in West Vancouver for $7.08 million and Holmes paid a $354,000 deposit to Team 3000. The completion date was set for May 4 and the contract called for Guo to deliver to Holmes a statutory declaration of residency status as defined in the Income Tax Act.
“Thereafter whether the seller was or was not a non-resident pursuant to the Act became an issue,” said the court filing.
Completion was changed to July 30 and a clause required the seller to provide the buyer’s lawyer a clearance certificate or notarized declaration from the Canada Revenue Agency that the seller is a resident of Canada.
By July 23, seven days before closing, Guo did not provide the agreed documentation. A day later, Holmes considered the contract repudiated.
Team 3000 returned $226,335.50 of the deposit. Now Holmes wants a judge to order Team 3000 to release the remaining $87,664.50 and for Guo to pay the sum, plus interest and costs.
None of the allegations has been proven in court. The defendants have yet to file replies.
The property was assessed last year at $6.495 million, after reaching $8.083 million in 2017. The six-bedroom, seven-bathroom, custom-built mansion with an outdoor pool is now listed for $6.99 million.
Hootsuite laid-off 10% of its workforce at the end of April. In a statement at the time, Hootsuite said the changes were “in order to drive greater alignment with our growing company’s strategic priorities that best serve our customers.”
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