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It is important that you consult an Ontario real estate lawyer, as Ontario real estate laws and regulations changing frequently. Buying a new home/condominium in Ontario, Canada can be a challenge.
You can consider many factors at this time including the condominium development stage, the level of experience and knowledge of the builder you choose in the end. Things to consider are outlined below:
At the time of entering into a sale and purchase agreement with a newly built home/condominium builder, there is a cooling period of 10 days. This date is calculated from the date the two parties signed the agreement. Any capping off charges should be made during this period. When no practical action is taken to terminate the contract during cooling off, the sale and purchase agreement often becomes a binding agreement. It is recommended that the agreement be reviewed by an Ontario real estate lawyer to confirm when the cooling period will begin.
Home/condominium in the pre-construction phase, it may be many years before you move into it. Even after you move in, you may not be the owner of a new home. The no of days from the builder’s promised occupancy date and the ownership actually transferred to the buyer is the interim occupancy period. Any new home ownership can only be transferred after the property has been registered with the local municipality. Shorter interim occupancy period are more favorable for the buyer as the amount remaining on the new condominium purchase is not reduced due to the interim occupancy period fee paid.
Before the project is completed, many investors end up selling their builder properties. The assignment is the process where the interest of the purchaser-investor in the sale and purchase agreement with the builder is transferred to a new buyer or assignee. The written consent of the builder is required before the assignment can be made by the buyer-investor. Many builders can also reserve a clause of assignment according to their contract.
Whether you are moving to a property or buying one to invest, it is best to have the agreement reviewed by an Ontario real estate lawyer. To request any amendment to future assignment you can understand your all possible options.
When you buy a new home from a builder, the builder agreement probably has many clauses that differ from one builder to another. There are many adjustments that are charged for the cost of the property during the closure of the transaction. Typically, closing costs include land transfer taxes, legal fees, legal disbursement and any other improvements ordered during the colour selection.
A few builders also include cost items as part of the unit’s cost of building sewer, bulk hydrometer, property taxes, education and development costs to increase the purchase price of the property. Estimated closing costs can range from few hundred to several thousand dollars. In condominium agreements, they are usually left open when any specific amounts are not provided. It is important to cover these costs and other charges such as closing adjustments by placing caps on them. It is recommended that you contact your Real Estate attorney to make sure the caps are there for each of these charges.
The Ontario New Home Warranties Plan Act states that all builders must provide a required warranty coverage in Ontario. Tarion brings the new home warranty coverage for all newly sold homes including single, multiple and condo residences. In single or multi-residential units, warranty coverage starts from the closing date. In the case of condo property, coverage is effective from the date of occupancy. All areas shared in condo are included from the date of registration of the condominium corporation.
Check that the builder has adequate deposit insurance. New buildings are normally covered by Tarion warranty. You need to ensure that your deposit will be protected in the event of a builder is bankrupt.
Leased equipment costs, interest on deposit amount, HST for new home/condominium purchase, accessibility & amenities, Upgrades and finishes, protection for buyers against delayed occupancy, pre-delivery inspections and complaints.
At Law Wise, our experienced Ontario Real Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them. We guarantee professional approach and prompt communication to achieve successful outcomes for you.
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