* Ontario Securities Commission will not pursue matter
* Trump hotel developer Talon delayed closing to Dec. 13
* Disgruntled investors lining up with lawsuits
TORONTO, Dec 4 Canada's top securities regulator
said on Tuesday it would take no action against the developer of
the Trump International Hotel in Toronto after looking into
complaints by investors who bought condos in the troubled
"After a thorough review of the matter, we have determined
not to pursue regulatory action," the Ontario Securities
Commission said in a statement.
The brief investigation by the OSC had prompted Talon
International Inc, which developed the 65-story granite and
glass hotel-condominium tower, to delay its closing date for
final payments on condos by two weeks to Dec. 13 as it
cooperated with the inquiry.
With the OSC's decision, disgruntled investors who are
trying to get out of their contracts to buy luxury condos in the
project are left scrambling to find financing for their
More than a dozen buyers are suing Talon to get out of the
deals, while the developer is suing others who filed notice
earlier in the year of their refusal to close.
While real estate mogul and TV personality Donald Trump's
company did not develop the property, the Trump Hotel Collection
manages the property, which opened this year in Toronto's
business district. A lawyer for the Trump Organization has said
the lawsuits are a simple case of buyer's remorse.
Buyers, many of them foreign investors, have complained the
project has been far costlier and less profitable than the
developers promised and argued Talon sold them an investment
rather than a condominium. The property contains 118 residential
condos and 261 hotel-condos that go into a rental pool.
Investors have also struggled to secure mortgages on the
units, which are to be rented out to hotel guests as part of a
pool of privately owned units. A lawyer for several buyers said
banks and tax authorities view the units as commercial rather
than residential properties, subject to far higher tax rates and
riskier and more expensive lending rates.