NEW AT BUYING IN PRE-CONSTRUCTION?

We are here to guide you step by step!

These are the typical steps involved in purchasing a suite at the opening of a new condo:

1 – Select the Project

Are you looking to buy as an investment? Which is your preferred location? Is it for you to live? or to Rent out? 1 Bedroom suite or 2 Bedrooms suite?Completion date?

Things to consider when looking at location: Walk Score, Public transportation, near by amenities, site and city plans, potential tenants.

Things to consider when looking at price: Budget, Price per square foot, Incentives, Deposit structure, Growth or appreciation.

Things to consider when looking at needs/wants: Floor plans, Developer’s reputation, prospective tenants needs, Condo amenities, Features and Finishes. We are here to help you decide on the best project to match your needs.

2 – Select and Reserve your Suite

Once you find the right project, it's time to select the best suite for you by comparing floor plans, prices and views from the unit.

At this point a Suite reservation worksheet is completed and given to your agent. Usually the worksheet will ask you for your 3 preferred suite choices.

3 – Confirmation of Suite Allocation

We will confirm which suite has been allocated to you. The suite will be on hold for you for a limited time.

At this point if you decide to purchase, we will get an agreement ready for you to sign.

A deposit is given together with the offer to buy.

4 – 10 Days cooling-off period.

The Condominium Act provides you with a 10 Days cooling off period. This allows you to terminate the agreement without cause and get your deposit back if you rescind the agreement in writing within the 10 days period.

The 10 days cooling-off period is a good time to consult with your lawyer and make sure you understand everything, or ask all questions you may have. At the same time you can use this time to go to your bank and get your mortgage pre-approval which is required by most builders.

5- Deposit Structure

Your agreement becomes firm after the 10 days cooling off period, and your first deposit will be cashed.

Each condominium has different payment terms.

This is an example of a Pre-construction condo deposit structure:

$5,000 deposit with offer
Balance to 5% in 30 days
5% in 180 days
5% in 360 days
5% in Occupancy

6- Occupancy and closing

From time of your purchase to move-in day could be anywhere from 1-3 years, depending on when you buy. Every project has different payment terms, usually last 5% deposit will be given on occupancy.

Newly built condominiums have two closings: The interim occupancy which is set by the builder and the final closing which occurs at the time of registration.

Let's look at the difference between the two and what this means for you.

Occupancy Date: Once your unit is ready and livable and the Municipality grants the builder permission, you will be able to occupy or take possession of your unit.

• In this time you are allowed to move into or occupy the property.

• You will be paying occupancy fees to the builder (i.e. rental fee) which are outlined in the Agreement of Purchase and Sale

• You are NOT paying a mortgage at this point

Closing Date: This occurs upon registration of the building, at this point, you legally own the property and has possession of the condo unit. This is when your mortgage terms begins.

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