Two years ago, Karlos deTreaux of Hanalei said he made a $10,000 down-payment on a lot at Kulana, a planned residential development located on agricultural land in Kapa‘a. DeTreaux believed he was purchasing a lot that would be locked in
Two years ago, Karlos deTreaux of Hanalei said he made a $10,000 down-payment on a lot at Kulana, a planned residential development located on agricultural land in Kapa‘a.
DeTreaux believed he was purchasing a lot that would be locked in at a selling price of $318,000, he told The Garden Island Monday.
Recently, deTreaux said, he and other Kulana buyers learned that the costs of their future home sites had been hiked considerably, and that they had to agree to the new prices or face losing their lots.
Detreaux said that officials at Vision Properties, the broker for the development, informed him the cost of his lot had been raised to $489,000.
Don Pixler, a real-estate professional with Vision Properties, referred all comment to the company developing the project, Kapaa 382 LLC. Principals of the company could not be reached for comment Monday.
There may be a clause in the land sale contract that allows the developer to boost the land price to current market value under certain situations, as has happened elsewhere in Hawai‘i.
“They said our contracts were canceled,” de-Treaux said. “What did we sign our contracts for? We could have bought the last affordable land two years ago instead of waiting,” he said.
Financing for the lots at the new prices must be in place by July 15, deTreaux said.
Contracts to accept the new figures must be signed by Friday, said one lot owner who wished to remain anonymous.
This lot owner said the price of a parcel increased by $180,000. Some lot owners found out about their increases last week, some just yesterday, one owner said.
The lot owner said if the contract was not signed, Vision Properties officials said they would resell the lots to new buyers.
DeTreaux said it was his belief that this was being done to make more money by selling the homes at the more expensive market prices of 2005.
He said lot owners get back their $10,000 payments, but with no interest.
Lot owners are also considering legal action, either as a group, or with individual representation, DeTreaux said.
- Andy Gross, business editor, may be reached at 245-3681 (ext. 251) or agross@pulitzer.net.
