Are you looking for information on pre-construction condos and want to know
how the process works?
I am about to share all of this with you
starting right now
I am Sushma Khinvasara
I am a realtor with Century 21 Green Realty
here in Toronto area
If this is your first time you may want to consider
subscribing to my channel because here
I talk about latest developments preconstruction
and resale real estate sphere
in Toronto area
and beyond.
When you are looking to buy a new condo and come across
a new builder condo project you need to do some research
on those projects. One of the most important
things for look for is the builder's track record
how long have they been in this business
have they completed all their past projects
what are the kind of materials and the quality they are using
in their projects.
Doing some background checks of the builder's history
is an important first step and this will save you a lot of grief
later on when the time comes to purchase your new build condo.
If you are working with a VIP or a platinum agent
whom you can trust, this process will become much much easier
since your agent will have more detailed knowledge
about the builder and the project.
It pays to have a VIP or platinum agent
to represent your interest.
these agents have a strong track record with the builders
and have advanced knowledge of the condo projects
and also priority access to these projects
much before they are open to the other agents and the general public.
A VIP or a platinum agent can work out better deals for you.
I'll explain more about VIP and platinum agents
in one of my upcoming videos.
Once the project is launched
typically you will receive a complete package
on the launch date. This includes brochure
floor plans and pricing and
any incentives the builder is offering
on the launch date.
Look out for some of the good incentives
the builders can offer.
Sometimes they will provide you
free parking or discounted parking
and lockers.
Sometimes they can also give you
stainless still appliances
and also the trend now is
limiting development charges.
This is also known as
capping development levies.
Take advantage of the incentives
when the condo project is launched.
Some builders will start signing
the projects as soon as
they are launched
and some will require your
information to be submitted on a worksheet
with the choice of units you want
and normally they would ask you
2 or 3 choices and once you submit
the worksheet which is first come first basis
then the builder will call up
your agent and will let them know
what units were allocated to you
and then you're called on sale date
to come and write the agreement
of purchase and sale.
On that day you're needed to
bring your ID and cheque book.
Then, when you are also filling up
the worksheet you need to decide
which units you want to fill up.
It depends on many choice.
If you have a family and you want
a bigger unit, whether you want
a 1-bedroom or a 2-bedroom (unit)
also if you are an investor
which (unit) will give you more returns
when you really want to
rent out the unit.
These are some of the things you
need to consider when you are
filling up the worksheet.
Another consideration is
also the amenities which the
builder is providing. Many of new condo buildings
which are coming up come with a gym
a party room, kids play area, outdoor lounge area
workstations.
Usually townhomes will come with
the community park and play area
The next step in buying the preconstruction
condo is signing the contract with the builder
known as the agreement to purchase and sale.
Unlike agreement in a resale transaction
this agreement with the builder
is much more detailed.
It includes the deposit payment,
the intervals, description of your unit
any parking and locker which
you have purchased, occupancy date
Tarion home warranty
and any assignment provision
and so on.
Watch my video on condo assignment
for more information on how
condo assignment works. (coming soon)
After you have signed the agreement
you have the cooling off period
which is crucial in new condo
buying process in Ontario.
It is a period of 10 calendar days.
Essentially this allows the buyer
to review the agreement with a lawyer
and if not satisfied in any way
when reviewing the agreement
can walk away from this deal
without any penalties.
But once the cooling period is over
and you have not given back the unit
to the builder the deal is firmed up.
The next step comes is
the interior look of your condo.
You will be called to come and select
the interior choice or the colour choices
for your unit.
This is an important step after you have
purchased. This will normally be
anytime between the signing of
the agreement and the possession.
The next step before the interim
occupancy is called as the PDI
or the pre-delivery inspection.
When your unit is ready to be occupied
builder's representative will go through
a pre-delivery inspection of the unit
with you prior to handing over your keys
Next step is occupancy of the condo.
When your condo is built and ready
to be moved in, there is an
interim occupancy period when the builder
gives possession of the unit
but does not close the purchase.
Because the building registration
is not yet completed.
And the last step is
closing your purchase.
Closing takes place only after
the building is registered
with the city then the condo ownership
is transferred to the buyers
and the buyers become the owners
of that property.
I hope you get at least some clarity
on the intricate process of
buying preconstruction condos.
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