It can be overwhelming when you are considering buying a pre-construction condo. Alex Irish & Associates, we compiled a few tips for purchasing pre-construction condos in Oakville. A big part of purchasing a condo is a lifestyle choice. Often people who purchase a condo want to change their lifestyle, to travel more, sometimes they want to downsize from their homes to a maintenance-free lifestyle. Another reason why people choose to buy a new condo is the benefit of moving into a shiny and new home, without having to do renovations themselves.
You will want to give some thought to how much space you will require, how many bedrooms do you need, do you require an office/den? What exposure do you like, south west or south east, a city view or overlooking green space? Maintenance fees are calculated on an sq. ft. basis, so depending on the size of the unit and the amenities in the building this will determine how much your monthly maintenance fee will be. Be sure to ask what the monthly fees are going to be and what they include, do you pay extra monthly fees for parking and a locker? Taking the time to understand your wants and needs will make it easier for you to make a decision when buying pre-construction condos Oakville at Alex Irish & Associates we can help with this.
One of the many benefits of buying Pre-construction Condos in Oakville is you will get to choose your own colour choices for your features and finishes from the builder’s standards. Most of the time you will also have the ability to upgrade your unit with some of your own personal touches. Be careful most builder’s upgrades tend to be a bit costly, you normally have to pay for the upgrades you choose at the time of choosing them. Another big perk when buying pre-construction is spreading the deposit monies out over a longer period of time.
When buying Pre-construction Condos in Oakville you usually have to wait 1 year to 3 years, and sometimes it can take up to 5 years to get occupancy, sometimes buyers like the idea of having a long closing.
Things To look out for, be sure to research the developer to make sure that they have a good reputation, you can go to this website to search the Ontario Builder Directory (OBD) to find out if they are a licensed builder, or if they have any complaints or convictions, and how many condos have they built-in Ontario. Alex Irish & Associates, we can help with this
Read your Agreement of Purchase and Sale and the disclosure statement, this is a legal and binding contract between you and the Developer. Alex Irish & Associates, can explain and help you understand these documents. Once you ready to proceed to purchase, let your lawyer review within the 10-day cool-off period which is Condominium Act law, this allows you within this period. review and you will have the ability to cancel the purchase. The deposit required is usually 20 % of the purchase price. The contract will indicate the deposit amounts and dates and when they are due. Your lawyer will explain how your deposit is protected within the Tarion Warranty. Your lawyer will help you understand the Tarion warranty, which includes closing dates, delays, fees, and other possible costs.
If you are Pre-construction Condos in Oakville as an end-user HST is included in the purchase price. Closing costs are something that you should be aware of, these would include; Developer charges or Levies. You can get your lawyer to ask the developer to cap the Development charges. Ask if you assign your agreement before closing? Check if the contract your signing has an assignment clause and if so, what is the fee the developer will charge you.
Before you take interim occupancy, you will be required to do a Pre-Delivery Inspection (PDI) with a representative from the developer. You will walk through your unit and point out anything damaged or missing or incomplete. The Developer’s representative will record all the deficiencies on a PDI checklist, the developer will be mandated under Tarion to do all deficiencies on a scheduled timeline.
You might move into a new condo before the condo project is completed and registered. When that day comes to take occupancy, this is called Interim Occupancy. Question to ask, how long will the Interim occupancy be before the condo building is registered. When you live in interim occupancy, you will have to pay the developer a monthly fee, be sure to ask the sales representative what the fee includes? These fees are not credited to the purchase price. Once the building is registered the title of the condo will be transferred to you.
Buying a pre-construction condo can be a wise investment or lifestyle choice but it’s extremely important you work with an experienced agent that specializes in pre-construction sales. They will be able to help you avoid some of the pitfalls and help guide you to making an informed decision.