.png)
Are you a first-time home or condo buyer with questions you're hesitant to ask? Navigating this process can be daunting, especially with the complications of real estate law in Ontario and numerous forms and laws related to it.
To help you steer clear of common pitfalls, Humber Bay Law has compiled essential facts and answers to frequently asked questions.
· Purchasing Process:
Typically, you can visit a Sales Office and work directly with the Builder's Sales Team. You don't need your own real estate agent. If you decide to proceed, you'll sign a Purchase and Sale Agreement.
· Review Period:
There's usually a 10-day period to review the Agreement with your Real Estate Lawyer. During this time, you can back out if needed. Your lawyer can also negotiate terms with the builder's Real Estate Lawyers. Ensure you approve the negotiation letter before it is sent.
· Legal Fees:
Expect to pay around $400 for your lawyer to review the Agreement and any subsequent letters from the builder's lawyer.
· Deposit Schedule:
The Agreement will detail the deposit dates and amounts required for your home purchase which must be adhered to or you risk losing your right to the home on the final closing date.
· Potential Delays:
Be prepared for possible delays, as pre-construction projects can be postponed for months or even years.
· Closing Date:
This is when all deposits are made, and the home is ready for occupancy. You'll receive a Final Statement of Adjustments, including additional fees, typically around $10,000, for levies and development charges.
· Extension Penalties:
If you cannot move in on the Closing date and need an extension, expect penalty fees. These can vary and might require negotiation to be reduced, which your real estate lawyer will help you with.
· HST Rebate:
You won't be eligible for the HST rebate if the property is not for personal or immediate family use. Landlords can apply for it, but approval can take time.
· Primary Residence Use:
Notify the Builder if the property will be your primary residence or for an immediate family member. This ensures you receive the necessary HST rebate forms and credits for the final closing.
Buying a pre-construction condo follows a similar process. You can visit the Sales Office directly and work with an assigned real estate agent. If you decide to purchase, you must provide a certified cheque or bank draft.
1. Agreement Availability:
The Agreement of Purchase and Sale may take time to receive. If you change your mind before signing, you can retrieve your deposit.
2. Legal Review:
If you want to back out, have your Agreement reviewed by a real estate lawyers in Ontario (about $300) within 10 days.
Occupancy Closing occurs when the Builder deems the unit livable and the City issues an occupancy permit. You'll start paying occupancy fees similar to rent until the final closing date, when the entire building is complete, and all the units are finished and ready for occupancy.
3. Occupancy Fees:
These fees cover estimated common expenses, property taxes, and interest. You must occupy the unit and pay these fees monthly.
4. Extension Penalties:
Penalties will apply if you need an extension on the Occupancy date.
5. Occupancy Duration:
This stage can last from 2 to 10 months.
6. Mortgage Preparation:
To avoid delays, keep your Mortgage Representative informed throughout the process and apply for your mortgage early so that it is ready for final closing.
7. Occupancy Payment:
The balance due at Occupancy Closing is treated as a deposit for the Final Closing. Your Real Estate Lawyer Ensure the Statement of Adjustments at Final Closing reflects this amount.
8. Final Closing:
Once the Declaration is registered, a final closing date is set, and notice is given to you and your real estate lawyer. Send this notice to your Mortgage Representative promptly.
Whether you're a first-time or repeat buyer, these considerations are crucial. Happy house hunting!
.svg)
.svg){kind=icon}