5 TIPS FOR BUYING A NEW CONDO

1. DELAYS HAPPEN
It Could be two or Three years between the date you sign your purchase agreement and the date you take occupancy of your unit. If construction runs over schedule, it could be even longer. Read the statement of critical dates , outlined in the addendum attached to the agreement of purchase and sale to get a cents of how long it may take for condo to be ready for your occupancy.

2. KNOW YOUR RIGHTS

Know your rights when it comes to delayed closings. Builders are entitled to extend the occupancy date specified in a purchase agreement as long as they provide proper notice. (when proper notice is not given buyer are eligible for delayed occupancy compensation) It’s a good idea to read up on your rights and responsibilities in delayed occupancy situations, which you can do online at tarion.com. If a builder fails to close the sale or substantially complete construction, deposits are protected up to maximum $20,000 with any excess deposit amounts being protected by the trust provisions of the Condominium Act.

3. HIRE A LAWYER

A condominium lawyer will help you interpret your purchase agreement. It is your benefit to understand both your own and your builder responsibility. For Example the Condominium Act entitles you to a 10 days “ Cooling Off “ period that begins on the day you receive the purchase agreement or a document called the disclosure statement, whichever comes later. During this time , your lawyer can negotiate changes to the offer, like capping adjustments to the purchase price, restricting amendments to the size, design or dimensions of the unit or even getting out of the contract.

4. BE PREPARE TO MOVE INTO CONSTRUCTION ZONE

Condo projects are different from single family homes in that the purchase is usually completed in 2 steps.

Step1 is interim occupancy. Many buyer find out the hard way the they’re required to take possession of the completed unit before common element features like front reception, Landscaping and Swimming Pool are finished. This means you could live for many months without the anticipated amenities.

5. KNOW WHAT IS YOURS AND WHAT SHARED

 A new Condo unit comes with a 7 Year warranty from your builder

That is backed by Tarion Warranty Corporation. The shared areas in your Condo, such as the roofing, parking structures and exterior cladding and any shared amenities, are covered under the common element warranty. This is a separate warrantee from your units  warranty. Condo owner are responsible to submit warrantee claims from units only where as Condo Board handles the warranty for the common elements. More information is available online at tarion.com or Toll –free at 1877-982-7466 information about the Condominium Act can be found through the Ontario Ministry of Consumer Services.