Buying a pre-construction has many advantages. The first advantage being choice. Buying from the builder allows you to have more choice when it comes to the selecting the floor plan/layout and the location of the condo unit in the building. Finishes and decor are also a feature you are able to customize at this time. Since these condo buildings are new, there are fewer expenses usually associated with them such as a lower maintenance fee and fewer repairs required. If you are purchasing a new condo as an investment, historically the difference between the pre-construction and occupancy value have been positive.
Here’s how Buying a Pre construction Condo works:
1. Agreement- Once you have chosen the pre construction condo project you would like to purchase in as well as your floor plan, it is time to sign your life away! The agreement used for pre-construction condos is much different that your standard resale agreement. This document outlines all the terms and conditions under which you agree to purchase the unit. Don’t be scared when you see the agreement as it is significantly longer than a resale agreement. Some can run up to 30 pages long. What is unique to the pre construction purchase process is that the builder gives you a 10 day “cooling off” period. It is in this time frame that you will have your lawyer review your agreements on your behalf. Once this 10 day period is over and your lawyer has given you the ok, you must submit the remainder of your post dated deposit checks to the builder. This normally accounts for approximately 20% of your total purchase price.
2. Décor Center- Soon after construction of the building has started you will be required to pick your finishes during an appointment with the Developers consultant. Most developers also give purchasers the opportunity to pay for upgraded materials at that time if that is something they would like to do.
3. Occupancy Date- the date in which you are given the keys to your unit (although you still do not have title to your unit).
4. Interim Occupancy- This refers to the time you move in (Occupancy) to the day you are given title. Even though you do not have title to your unit, you are living in it and paying what we call “occupancy fees” to the builder. During the Interim Occupancy you pay an occupancy fee to the developer which is used to pay for items such as the maintenance fee, property tax and any interest that is outstanding on the purchase price. This period usually lasts up to a year. You are allowed to rent out your unit during the occupancy period, but be aware that you will not be eligible for your GST rebate if you choose to do this.
5. Building Registration and Final Closing – the condo building has finally been registered in land titles. Your lawyer will make arrangements to exchange title to the home with outstanding payment as agreed upon in the Agreement of Purchase and Sale.
Why Use My Services to Buy Pre construction Condos?
1. Free Advice: I work for you, not the sales office. In other words I have your best interests in mind. The best part is there is absolutely no costs to you for my buying services.
2. VIP Broker Invites: I am privy to VIP Brokers Invites which allows me to give you insight on buildings not yet released to the general public.
3. Best Prices and First Pick: As a registered sales representative, I am given the opportunity to offer my clients units at the best prices, before being released to the general public.
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