Why use a realtor experienced in pre-construction condos?

 • Prepare for the full deposit: When you can buy the resale house with less than 5 % down (with home loan insurance), investing in a preconstruction one usually requires a bigger down payment, such as for example 20 %. Commonly, you’ll deposit a 5-per-cent product sales deposit, and payout the balance from the deposit in instalments (at probably four, nine and 18 months into the purchase).

• Work with an attorney: Get legal advice both before and after signing any preconstruction home contract. For condominiums, there is generally a cooling-off period – a time frame (generally seven to 10 days, depending on the province where you live) when you can cancel your contract and get any deposits back. Mr. Aaron, who generally assesses preconstruction home contracts 40 webpages long or more, says the cooling-off time is specific to condominiums unless created into an agreement for any other type of home.

• Get ready to wait: It is not uncommon for targeted move-in times to be extended several times and by numerous months, as a builder could lawfully cite “inevitable delay” situations, such as building-trade issues. The warranty system within your province will spell out what delayed move-in payment, if any, you are entitled to and under what conditions.

• You may be capable to secure your mortgage price for a bit longer: Builders have a tendency to work with chosen mortgage suppliers, who, in the event that you meet the criteria, would offer you a particular interest rate secured in over a protracted period, in comparison to what a loan provider not from the builder allows. Check if the expiry time at the locked-in rate includes a chance of getting extended in case your home’s conclusion is extended. Additionally, you don’t need to stick with the lending company preferred with the builder.

• Manoeuvring the GST/HST: In case your preconstruction house is your principal residence, you can be eligible for rebates from the GST/HST, which utilize generally to “taxable product sales of the true property in line with the province in which the real property is situated,” according to Canada Revenue Agency. If you rent out your preconstruction home without first moving in, you may be on the hook for thousands in government taxes – check with your lawyer on ways you may be able to recoup that money.

• Budget for closing costs, and expect surprises: Your real estate, legal and mortgage professionals can help you determine how much extra you will be paying in closing costs – which are on top of what you are paying for the home itself. Roughly, these extra costs can add from 1 to 3 percent or more to the price of your home, and typically include legal fees, enrolling in the provincial warranty program, title insurance coverage, property tax modifications and land-transfer taxes (First-time home purchasers may get some breaks on land-transfer costs). Other costs may include charges to keep tabs on your deposits, for using the digital land registration program and for tool meter installations. You might be capable of work out an agreement using the builder to cover so-called unlimited fees.

• Plan the PDI: The predelivery examination – the very first time the buyer will discover the home inside its finished type – is normally done fourteen days to per month prior to the move-in time. Through the PDI, a consultant for the constructor will stroll you through the house, helping you have a look at all the functions and techniques (including mechanical, HVAC). Even though many contractors say you don’t have for you yourself to provide another celebration to the PDI – like a house inspector you employ at your personal price – you generally may bring along anyone you are feeling can help you within the examination procedure. The builder’s representative will bring an application to tag down whatever you experience needs repairing or modifying, or might have been overlooked from the initial sales agreement, as well as the constructor must follow through on dealing with them – before you move in, but sometimes after. Warranty programs tend to have specific PDI checklists obtainable online that break down what will become inspected and tips on what to look for.

• Prepare to pay “rent” on your condo before you “own” it: In the case of a preconstruction condo, you do not officially own it until the building is authorized – which happens when it is mostly all lived in and passes conditions set out by the provincial land registry office. The registration process can take three months or longer, after which the title of your condo will be transferred to you – and that is when any mortgage or other payments you make are put towards ownership. While awaiting registration, you will be able to move in – during this “interim occupancy” period, you must pay monthly “occupancy fees” (a type of rent that will not be put against what you owe for the condo) to the builder. Each month’s occupancy fee incorporates the interest portion of the balance owing on the purchase price, the condo fees and a portion of your property taxes.